Scenario: You’re involved in an accident with a driver who only has $50,000 in liability coverage. Your medical bills and lost wages total $275,000.
Without Excess UM/UIM:
Your regular UM/UIM covers $250,000, leaving a $25,000 gap you’d have to pay out of pocket.
With Excess UM/UIM:
Your regular UM/UIM covers $250,000.
Excess UM/UIM steps in to cover the remaining $25,000, ensuring you’re fully compensated for your losses.
Key takeaway: Excess UM/UIM bridges any potential gaps in your coverage, protecting you from financial hardship when accidents happen with drivers who don’t carry enough insurance.
Don’t Get Left on the Road: Understanding Excess Uninsured/Underinsured Motorist Coverage
Imagine this: you’re involved in an accident caused by a driver with minimal insurance, or worse, no insurance at all. Your car is damaged, you might be injured, and the at-fault driver’s coverage isn’t enough to cover the costs. This is where Uninsured/Underinsured Motorist (UM/UIM) coverage comes in as a safety net. But what if your standard UM/UIM coverage isn’t enough? Here’s where excess UM/UIM enters the picture:
Standard UM/UIM Coverage:
Traditional UM/UIM coverage protects you financially if you’re in an accident caused by a driver with no insurance (uninsured motorist) or if the at-fault driver’s liability coverage isn’t sufficient to cover all your damages (underinsured motorist). This can include medical expenses, lost wages, and car repairs.
The Limits of Standard Coverage:
While UM/UIM coverage is crucial, it typically comes with policy limits. These limits dictate the maximum amount your insurance company will pay out in case of an accident. If the damages exceed your UM/UIM limits, you might be left footing a hefty bill.
Excess UM/UIM: Stepping Up Your Protection:
Excess UM/UIM coverage acts as an additional layer of protection that kicks in after your standard UM/UIM limits have been exhausted. Think of it as an umbrella policy specifically for UM/UIM situations. With excess UM/UIM, you can increase your overall coverage and gain greater financial security in case of accidents involving uninsured or underinsured drivers.
Why Consider Excess UM/UIM?
Here’s why adding excess UM/UIM coverage might be a wise decision:
- Rising Medical Costs: Medical expenses can be astronomical, and standard UM/UIM limits might not always cover everything, especially in severe injury cases.
- Unpredictable Drivers: The number of uninsured drivers on the road is a reality. Excess UM/UIM provides peace of mind knowing you have additional protection.
- Underinsured Motorists Are Common: Many drivers carry the minimum required liability coverage, which might not be enough to cover your losses in a serious accident.
Understanding Your Needs:
Excess UM/UIM coverage typically comes in varying increments, allowing you to customize your protection based on your needs and risk tolerance. Consider factors like the value of your car, your potential medical expenses, and the number of uninsured/underinsured drivers in your area when determining the appropriate excess UM/UIM limits.
The Takeaway:
Standard UM/UIM coverage is a valuable form of protection, but excess UM/UIM takes it a step further. By understanding the limitations of standard coverage and the potential benefits of excess UM/UIM, you can make informed decisions to safeguard yourself financially against the uncertainties of the road. Remember, a little extra protection can go a long way in ensuring your well-being in case of an accident.