Another thread is asking about umbrella insurance policies. I want to remind everyone to have adequate UM coverage. UM is uninsured motorist or underinsured motorist coverage.

Many, if not most, insurance companies will quote you a rate for auto insurance with little or no UM coverage. In Louisiana it is mandated by law that UM coverage has to be the same as the liability limits, unless you sign a waiver. But almost all insurance agencies quote you with little or no UM, and stick that waiver in with the documents you need to sign.

Your liability insurance protects your assets against claims. It also protects others in the event that you are at fault. We all know if you get in an accident there can be a huge claim against you. But, what if you're in an accident and YOU have a huge claim? Badly injured, rehab, loss of job, in a wheelchair, need nursing help, etc. The likelihood is that the miscreant that ran the redlight and shattered your hip has no insurance, or the state mandated minimum. That doesn't go very far. Your UM coverage protects you against others.

You may have disability insurance, and that might cover your needs, but disability generally is designed to replace your income. May not be enough to cover extended medical care.

I suggest that you maintain a good liability limit, at least 100/300, and make sure that you have UM in the same amount. Relating back to the other thread, if you have an umbrella policy, ie. $1 million, you can buy UM up to that amount as well. UM is not dirt cheap, but a healthy amount is good to have in my opinion.

Hi Lou,

Can explain "stacked" insurance? I have three cars and the coverage is stacked.

My UM is 100/300 as you describe...stacked.