Umbrella Policies Don't Cover UM/UIM Claims

Your auto insurance policy probably includes underinsured and uninsured motorist (UM/UIM) coverage, which applies when the other driver hits you and his insurance isn’t sufficient to pay for your damages or he doesn’t have any insurance at all. Inadequate insurance and no insurance are major issues in Arizona.

While many people have this insurance, they often believe that their umbrella policy applies to the underinsured and uninsured policy limits. This belief is wrong.

Your umbrella policy applies only to situations where you are at fault, and it adds coverage to pay the damages you cause. The umbrella does not add coverage to help pay your expenses when you are not at fault. Without an umbrella for the underinsured/uninsured coverage, you are basically taking better care of the other party than you are of yourself.

Next to health insurance, the underinsured/uninsured coverage is the most likely form of insurance you will need in your lifetime. We strongly recommend that you check with your insurance agent to make sure you have the maximum amount of UM/UIM coverage and request an additional umbrella policy that provides that coverage.