Trends - Optional Excess Uninsured Motorist
Most financial planning clients get plenty of advice encouraging them to secure Excess Liability (umbrella) insurance. The risk to net worth (both current and future) stemming from an actual or alleged claim of negligence is fairly easy for most planners and consumers to understand. Insurance is a risk financing product, not a risk transferring product and most people understand that liability insurance only pays for the first $X of a liability claim.
Unfortunately, we see too many planners and consumers not feeling as strongly about securing Uninsured Motorist coverage to protect themselves against serious injuries caused by someone without insurance. The statistics prove that there's a nearly-equal chance of an accident being caused by someone without insurance as one being caused by someone with insurance.
If your client feels they have net worth worthy of protection against liquidation forced on them by a liability suit, it seems that they'd feel the same need for protecting net worth against liquidation forced by an injury and the resulting economic losses suffered at the hands of someone without insurance. Fortunately, the industry seems to be making Excess Uninsured Motorist more and more available as an optional coverage added to an Excess Liability policy.
Our observations suggest that for $1,000,000 worth of Excess Uninsured Motorist a typical family could expect to pay between $100 and $200 per year for this additional coverage. This seems extremely affordable and a valuable wealth protection tool. Remember, let the insurance company worry about the probability of any particular occurrence. The consumer just needs to worry about the impact of severe losses and different ways of managing that risk.
Mechelsen, Inc. Darren McGraw, MBA, CRM, CIC mechelseninc.com
Trends - Optional Excess Uninsured Motorist
Trends - Optional Excess Uninsured Motorist
Most financial planning clients get plenty of advice encouraging them to secure Excess Liability (umbrella) insurance. The risk to net worth (both current and future) stemming from an actual or alleged claim of negligence is fairly easy for most planners and consumers to understand. Insurance is a risk financing product, not a risk transferring product and most people understand that liability insurance only pays for the first $X of a liability claim.
Unfortunately, we see too many planners and consumers not feeling as strongly about securing Uninsured Motorist coverage to protect themselves against serious injuries caused by someone without insurance. The statistics prove that there's a nearly-equal chance of an accident being caused by someone without insurance as one being caused by someone with insurance.
If your client feels they have net worth worthy of protection against liquidation forced on them by a liability suit, it seems that they'd feel the same need for protecting net worth against liquidation forced by an injury and the resulting economic losses suffered at the hands of someone without insurance. Fortunately, the industry seems to be making Excess Uninsured Motorist more and more available as an optional coverage added to an Excess Liability policy.
Our observations suggest that for $1,000,000 worth of Excess Uninsured Motorist a typical family could expect to pay between $100 and $200 per year for this additional coverage. This seems extremely affordable and a valuable wealth protection tool. Remember, let the insurance company worry about the probability of any particular occurrence. The consumer just needs to worry about the impact of severe losses and different ways of managing that risk.
Mechelsen, Inc. Darren McGraw, MBA, CRM, CIC mechelseninc.com
Posted at 10:46 AM in Insurance Trends and Commentary | Permalink | Comments (0) | TrackBack (0)