A recent article in Insurance Agent summarized why you should purchase Uninsured Motorist (UM) and Underinsured Motorist (UIM) umbrella coverage (UM/UIM excess coverage in the case you are hit by underinsured or underinsured motorists) when you have medical coverage. Let’s break it down.
Medical Insurance would cover only direct medical costs in the event of an accident.
A UM/UIM excess policy provides liability coverage that the at-fault driver would not have. UM/UIM would cover medical expenses not covered by medical insurance, deductibles, copays, excluded procedures and treatment, pain and suffering with mental anguish, lost wages (if not covered by workers comp), disability, and other expenses.
Remember, an umbrella policy is designed to increase the limits of other underlying policies. Adding it to your insurance portfolio can only help you.