Is it necessary to get umbrella insurance with uninsured / underinsured coverage?

My wife and I are both retired and are on Medicare. When we were talking to our agent about an umbrella policy he mentioned additional coverage against uninsured motorist. Do we need it?

Umbrella insurance provides additional liability coverage above and beyond what you have on your auto and homeowners policies. It protects your assets if you're sued for injury or damage you cause to another party. On its own, umbrella insurance generally does not include uninsured or underinsured motorist coverage for you or your spouse; that has to be specifically added.

One important thing to understand is that in Ohio, uninsured and underinsured motorist coverage is strictly optional. Insurers are required to offer it, but you have to specifically ask for it to be added as an endorsement (Ohio Revised Code Section 3937.18).

If your insurer is offering UIM as an add-on to the umbrella policy, it's worth thinking through carefully. While Medicare will cover your medical bills if you're injured by an uninsured driver, it doesn't cover everything: lost wages, pain and suffering, and certain out-of-pocket costs can still add up significantly. UIM coverage fills that gap by providing additional compensation above what your standard auto policy's UIM limits would pay. According to our data, 39% of Ohio drivers carry only liability-only policies, meaning a significant portion of drivers on the road have little to no coverage for injuries they cause to others. So that's a good reason to at least consider it.

It's worth asking your agent to walk through the specific numbers so you can make an informed decision. You might also consider talking with a different agent or even a financial planner to get a few professional perspectives before committing. And regardless of what you decide, make sure any UIM coverage is explicitly added as an endorsement since it's not included automatically in any policy, umbrella or otherwise, and must be specifically requested.