All Categories Community Corporate Cyber Insurance Hospitality HR Corner Life Insurance Manufacturing Opinion Corner OSHA Personal Insurance Seasonal Reminders Travel Insurance What is UM/UIM coverage? How can an umbrella policy enhance it? 6/28/2018 umbrella policy uninsured motorists under insured motorists What is UM/UIM Coverage? UM and UIM stands for "uninsured motorists" and "underinsured motorists."The meaning of “uninsured" is “the absence of” and the meaning of “underinsured” translates to “not enough”. According to the Insurance Research Council, in 2015, 13% of motorists were uninsured. That is equivalent to one in eight drivers. If you think about the number of cars you pass by each day, this number is very alarming. This disturbing fact is a clear example of why you need to know more about UM and UIM coverage to protect YOURSELF. Below is a quick scenario to help you better understand the importance of this insurance coverage. Mary was driving her vehicle and was hit head-on by another vehicle that had crossed the center line and entered her lane. The other driver was insured with state minimum limits, at $50,000 liability. Mary was insured with an “A” rated carrier at TROXELL and had a liability limit of $500,000 per accident on her auto policy. Mary was taken to the hospital by an ambulance, she had several broken bones, and was in the hospital for one month. After she was released, Mary needed Physical Therapy, Occupational Therapy and required additional care and expenses. Mary’s vehicle was a total loss from the accident. Mary’s auto insurance company paid a total of $480,000 for Mary’s car and all medical expenses. In this example, Mary almost reached her maximum policy limit of $500,000 per accident. What if Mary had passengers in her vehicle that were injured as well? Mary’s policy would have been exhausted. Protect Yourself With an Umbrella Liability Policy Reading this should make you ask, how do I buy more coverage to protect myself? The answer is to add coverage to your personal umbrella policy. Umbrella liability policies start at a limit of $1,000,000 and can be increased per million. However, the uninsured and underinsured coverage is NOT and automatic add-on when you do this. It must be added onto your umbrella policy and therefore an additional, but minimal premium is charged. Answer these two questions: Do you have an umbrella policy? Do you have UM/UIM coverage added onto your umbrella policy? If you do not know the answer to these questions, call a TROXELL representative today to discuss your coverage options. And keep this in the back of your mind as you drive down the street: Roughly 1 in 8 drivers is uninsured. This article was written by: Sharlene Langford Sharlene is an insurance agent located in TROXELL’s Chicago office. She is part of the Specialty Personal Lines team at TROXELL. Sharlene can be reached at 312-948-5232. More Posts Comments Name Email Email address will not be publicly visible Comment MARK G RYAN 1/18/2020 I was applying for an umbrella policy and was asked if I had property in a foreign country. I reported my wife's condo in Brazil. I was told that this ownership excluded me from eligibility. Why? TROXELL 1/22/2020 Hi Mark, This really can depend on the insurance company that you are working with. Some companies will exclude properties based on other country's laws. Each company has their own eligibility requirements.