Missouri Insurance Lawyer Blog

Umbrella liability insurance is so named because it acts like an umbrella, sitting on top of your auto and homeowners liability policies to provide extra liability protection for you and your family. Most Americans carry liability coverage on their cars and home that would provide insurance coverage that could be used to pay claims in the event that you or a member of your family negligently caused injury to another person. Umbrella coverage is designed to pay only after your other policies are exhausted.

Why do you need umbrella liability insurance? Accidents can happen to all of us. If we cause injury to another person, the law holds us responsible for the injury and damages caused to the other person. For instance, your inattention caused a serious automobile accident in which someone was seriously injured or killed; or you failed to property maintain the brakes on your farm truck and an employee was unable to stop in time to prevent a terrible accident. Often, we do not carry enough automobile insurance or homeowner's coverage to pay for the damages that we may cause.

Unfortunately, home owner's insurance or automobile coverage may not be enough to protect your assets in the event of a serious injury or death. If your negligence results in damages to another person in an amount that exceeds your insurance limits, how and where would you get the money to pay the debt? Your assets, including your home or your investments could be at risk. If you have accumulated even a modest amount of assets or if your travel habits or business pursuits put you at risk, you should consider purchasing umbrella liability coverage as part of your financial planning strategy.

Umbrella liability insurance is relatively affordable, and can be easily coordinated with your existing insurance policies. Usually, there is a substantial discount in the insurance premium if you purchase your umbrella liability coverage, homeowners and automobile policies from the same company.

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Unfortunately, not all accidents are just minor fender benders. Should you find yourself in a serious accident, medical payments coverage pays for medical bills (and sometimes funeral bills) incurred by the driver and passengers injured in a motor vehicle accident regardless of who caused the accident. It also pays for you or your family members injured while riding in another's car or if struck by a car as a pedestrian.

Medical payment coverage is offered by most automobile insurance coverage and is usually sold in increments of $1000, $5000 or $10,000 per person.

Even if you have health insurance, there are often deductibles and co-payments that must be paid. If your health plan requires you to pay a deductible, medical payments coverage may help pay it. This coverage can also help pay for items not covered by your health plan, such as dental treatment, professional nursing services, prostheses, and funeral services.

In Missouri, medical payments coverage is not required. However, I recommend this coverage for most of my clients. If you decide this protection is appropriate for you, make sure you specifically request it from your insurance agent or representative. It is not always provided by simply requesting "full coverage" from your agent.

Continue reading "Do I Need Automobile Medical Payments Coverage?" »

Sooner or later, it may become necessary for someone else to drive your vehicle and you want to make sure that there is insurance if they are involved in an automobile accident.

Generally, insurance follows the vehicle, not the driver. If it is your car, then the insurance coverage you have purchased for your vehicle would provide primary coverage. Any insurance policy your friend has purchased would become secondary. Primary simply means that your insurance company should pay the claim first. Then if your liability limits are exhausted, your friend's insurance should pay additional amounts up to his limits.

Please understand that if your friend is involved in an accident with your car, your rates could go up. Also, in some circumstances, if you are aware that your friend is not a safe driver and you allow him or her to drive your car, you could be held personally liable if they cause an accident that seriously injures another person.

Continue reading "Does My Friend Have Insurance Coverage If She Drives My Car?" »

Wealth Matters - Never Mind Your 401(k). How's Your Insurance? - NYTimes.com.