To better understand umbrella insurance, it helps to provide an example. If you cause a car accident and are sued by the other party for $750,000 in damages,you may soon find that your insurance policy only covers $500,000 worth damages. This leaves $250,000 left on your shoulders as the responsible party.
The good news is that if you have umbrella insurance, this extra $250,000 will be covered by your insurance policy
Personal injury lawsuits resulting from an accident are more common than many of us are led to believe
If you get into a car accident with the potential for getting sued, you can’t afford not to have umbrella insurance.
Umbrella insurance provides coverage beyond basic auto insurance policy limits. It may also cover extraneous circumstances that aren’t insured within a policy.
Defective brakes, other automobile defect
Driver is responsible for paying your damages
Driver is responsible for paying your damages. A bar or restaurant may also be responsible if they continued to serve alcohol to an obviously intoxicated patron.
Automobile manufacturer or supplier may be responsible for paying your damages.
Governmental entities may be responsible for paying your damages.
Umbrella insurance is a secondary policy that extends your liability coverage.
Before umbrella coverage kicks in, car insurance policy limits must be exceeded.
- Extra protection above auto liability coverage limits
- Broader coverage for loopholes or exclusions in a liability policy
- Affordable insurance rates for payout value
- Covers Costly legal expenses in a lawsuit
- Offers peace of mind against litigation
Depending on the provider, umbrella insurance coverage may be available from $1 million up to $10 million, based on certain qualifications. Minimum requirements for umbrella insurance will vary by insurer and may start at #250,000 per person/$500,000 per accident in car insurance bodily injury coverage with $100,000 per accident in car insurance property damage coverage.If you are a driver with a car insurance policy, you can benefit from umbrella coverage.
If you’re in a position where you can barely afford to pay your insurance, every penny counts.
secondary policies like umbrella insurance as low as possible:
Licensed Insurance AgentEric Huffman
- Terry, Staci A. “Personal Injury Lawsuit US | The Legal Finance Journal.” The Legal Finance Journal. Web. 29 July 2013.
- “How Does An Umbrella Policy Work And How Much Does It Cost? | Financial Samurai”. Financial Samurai – Honorable Personal Finance. Web. 29 July 2013. The information provided is informative only and is not intended to be used for legal purposes. No one should use this information as a means to misrepresent or defraud an insurance company. If you are unclear about your insurance needs, please contact a license insurance professional for more specific direction.