Umbrella Policies Also Provide Uninsured/Underinsured Motorists Coverage

Umbrella policies are often purchased to supplement and augment coverage under a standard automobile policy.  Similar to a standard automobile policy, New Hampshire also requires that insurers issuing umbrella policies include uninsured/underinsured motorists coverage ('UM coverage') in an amount equal to the coverage for bodily injury to others.  Unlike a standard automobile policy, however, the person buying the umbrella policy may waive his or her rights to the UM coverage.  While a person may have a right to waive coverage, it is recommended that he or she do not waive the uninsured/underinsured motorists coverage as the benefit provided is well worth the minimal amount saved by waiving the coverage.  As indicated in prior articles, UM coverage provides the person buying insurance with a significant benefit of protection from being injured by a person who is uninsured, underinsured, or unidentified.  Being involved in a serious automobile accident is a tragic,, life-changing event.  This tragedy is compounded when the available insurance coverage is insufficient to assist the injury victim with the financial repercussions of being involved in an automobile accident.  UM coverage often provides assistance to minimize financial impact of such a life changing event.