In recent years, we’ve seen a troubling shift on the road—one that’s starting to impact even the most well-prepared households. More drivers are choosing to go without insurance or carry limits so low they’re effectively meaningless in the event of a serious crash. For families with significant assets, the financial exposure from underinsured or uninsured motorists is quietly growing.
This trend isn’t just theoretical; it’s showing up in everyday life. Whether it’s a fender bender involving a luxury vehicle or an accident with injuries, we’re seeing more claims where the other driver cannot cover the damages. The legal minimums in many states don’t come close to what’s needed to cover the cost of medical bills, lost income, or property damage, especially when high-value vehicles or multiple injured parties are involved. Colorado, for example, only requires that drivers carry $25,000 (per person) / $50,000 (per accident) / $15,000 (property damage) of liability coverage – limits that can quickly be exhausted with one emergency room visit.
Across the country, the number of uninsured motorists is climbing, driven largely by economic pressure and rising insurance premiums. What was once an 11% issue just a few years ago now impacts an estimated 14% of U.S. drivers (an estimated 39 million uninsured drivers). In Colorado, where uninsured drivers, vehicle theft rates, and storm-related claims have driven up insurance costs, that number is nearly one in five. And in urban areas like Denver, it’s likely even higher.
Even a seemingly minor accident involving an uninsured driver can have outsized financial consequences for high-net-worth households without the right coverage.
Source: PURE Insurance
Protecting wealth is about consistently getting the fundamentals right. That means going beyond standard auto coverage and ensuring your policies are built to absorb the realities of today’s roads.
Uninsured and underinsured motorist (UM/UIM) coverage is often the first line of defense. Yet many standard carriers cap these limits at levels far below what’s needed, leaving significant gaps in protection. Working with a high-net-worth (HNW) carrier, like PURE or Chubb, can mitigate this issue with Excess UM/UIM limits that align with a client’s assets and risk profile, providing a more comprehensive safety net. It is uncommon for standard carrier umbrella policies to offer Excess UM/UIM altogether, creating a critical vulnerability that HNW carriers are uniquely positioned to address with tailored, high-limit solutions.
We’re working with more and more clients who are proactively increasing their UM/UIM limits by extending those protections through their excess liability policies. In fact, what used to be considered a generous, and appropriate, $1 million Excess UM/UIM (on top of the auto UM/UIM limits) is now being replaced with $2 million, $5 million, or even $10 million limits with the HNW carriers who understand the importance of this coverage.
Excess UM/UIM coverage is essential for families because it provides protection for major injuries, long-term medical expenses, mental anguish, and lost wages that would otherwise require pursuing a lawsuit against the at-fault driver. In a scenario where the at-fault driver does not have insurance, and has limited assets to recover (or flees the scene), the Excess UM/UIM coverage steps in.
What’s surprising to many is how affordable this added layer of security can be. Adding Excess UM/UIM coverage to an umbrella policy is very cost-effective —roughly $100 per million in coverage, depending on the specific coverage and situation. Compared to the cost of litigation or medical expenses following a significant accident, it’s an investment that often makes good financial sense.
The key is not assuming that higher limits come automatically. Many carriers (especially those in the standard insurance market) don’t offer Excess UM/UIM in their umbrella offerings, which is why detailed policy reviews with a knowledgeable independent insurance agent and annual consultations are important.
The risk of encountering an uninsured or underinsured driver isn’t going away. But with thoughtful planning, that risk can be contained. If you haven’t reviewed your liability and umbrella coverages recently, now is the time.
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