Viper Alley - Dodge Viper Forum - View Single Post - Is $60,000 enough uninsured motorist coverage ??

Thin Man · April 15th, 2004, 09:34 PM

Matt... I think you are you referring to a Personal Umbrella Liability policy? A PUL is written to extend an additional "umbrella" of liability over all your personal activities..... ie it extends over your homeowners insurance policy and your automobile insurance policy.

The PUL will pick up coverage after your underlying liability limits are exhausted... ie your homeowner carrier pays policy limits for a personal liability claim... and there are still judgement dollars to pay... the PUL would pay up to it's limits.

In similar example... say you cause a 20 car pile up.... you have $300,000 per occurrence liability limits... but the judgements against you are $1,000,000. If you have a Personal Umbrella Liability policy with say $2,000,000 limits.. then that PUL would pay the additional $700,000 to satisfy the judgements.

A PUL is a good idea for anyone with higher liquid (ie attachable) assets. I typically recommend that folks consider their net worth, and liquid net worth.... total up the attachable assets.... and whatever that figure is.... purchase a PUL (personal umbrella liability) policy for double that amount.

With the carrier I represent... a $2,000,000 PUL would only cost about $250-$350 per year ... the variable factor is number of vehicles you own, number of drivers, number of homes.

Additionally, most carriers require minimum underlying limits... for instance a minimum of $300,000 liability on the homeowner policy, and a minimum of 300K/300K liability on the auto policy.

And to answer the initial question... I had a client come into the office back in July 2003 and he requested to lower his uninsured/underinsured motorist coverage.... we recommended against the manuever..... but did so with a signed statement. About 60 days later he was hit head on, by a drunk, coked-up, unlicensed, uninsured driver..... He spent 3 months in the hospital and his hospital bill was in excess of $200,000. My carrier paid him the PIP benefits of $10,000..... and we paid his lowered uninsured limits of $50,000....... I am not sure how he paid the remaining hospital bill of $140,000.

I'd say unless you are a multi-millionaire who does not work for a living and you have cheap access to healthcare.... you need higher UM limits..... but that may be the insurance agent in me??

April 15th, 2004, 09:34 PM	#9
Thin Man Senior Member Thin Man is offline Join Date: Jan 2003 Location: Shit List Member #1 Posts: 1,808 Rep Power: 8	Re: Is $60,000 enough uninsured motorist coverage ?? Matt... I think you are you referring to a Personal Umbrella Liability policy? A PUL is written to extend an additional "umbrella" of liability over all your personal activities..... ie it extends over your homeowners insurance policy and your automobile insurance policy. The PUL will pick up coverage after your underlying liability limits are exhausted... ie your homeowner carrier pays policy limits for a personal liability claim... and there are still judgement dollars to pay... the PUL would pay up to it's limits. In similar example... say you cause a 20 car pile up.... you have $300,000 per occurrence liability limits... but the judgements against you are $1,000,000. If you have a Personal Umbrella Liability policy with say $2,000,000 limits.. then that PUL would pay the additional $700,000 to satisfy the judgements. A PUL is a good idea for anyone with higher liquid (ie attachable) assets. I typically recommend that folks consider their net worth, and liquid net worth.... total up the attachable assets.... and whatever that figure is.... purchase a PUL (personal umbrella liability) policy for double that amount. With the carrier I represent... a $2,000,000 PUL would only cost about $250-$350 per year ... the variable factor is number of vehicles you own, number of drivers, number of homes. Additionally, most carriers require minimum underlying limits... for instance a minimum of $300,000 liability on the homeowner policy, and a minimum of 300K/300K liability on the auto policy. And to answer the initial question... I had a client come into the office back in July 2003 and he requested to lower his uninsured/underinsured motorist coverage.... we recommended against the manuever..... but did so with a signed statement. About 60 days later he was hit head on, by a drunk, coked-up, unlicensed, uninsured driver..... He spent 3 months in the hospital and his hospital bill was in excess of $200,000. My carrier paid him the PIP benefits of $10,000..... and we paid his lowered uninsured limits of $50,000....... I am not sure how he paid the remaining hospital bill of $140,000. I'd say unless you are a multi-millionaire who does not work for a living and you have cheap access to healthcare.... you need higher UM limits..... but that may be the insurance agent in me??