Why You may need an Umbrella Insurance Policy?
You rely on your auto insurance coverage to protect you financially in the event of an automobile accident, but what happens when your liability extends beyond the limits of your current auto insurance policy? If you are sued as the result of an auto accident, you could find your assets, and even your home, in jeopardy. How can you protect yourself?
Umbrella insurance, often called “excess liability”
This type of coverage takes over when your auto insurance policy has reached its limits, or if you are sued for something not covered by the terms of your auto insurance policy, thus protecting you from attacks on your assets.
How big an Umbrella do You need?
Well, the answer depends on your net worth. If you have a million dollars worth of assets, you should seek a million dollar Umbrella Insurance Policy. For example, if you’re assets are worth five million dollars, then a five million dollar or more policy is right for you. People often buy Umbrella Policies that exceed their net worth, just to be on the safe side. These may sound like big numbers, but fortunately, Umbrella Insurance is very affordable. A million dollars in extended liability coverage can cost as little as $120 dollars per policy.
Policies vary by company
Most companies require that both your home and auto be insured with them before you are able to qualify for Umbrella Insurance. CarInsuranceQuote.com can help you select an Umbrella Insurance Policy that meets your needs.
When exactly would your umbrella policy protect you?
You are involved in an accident in which your car strikes a cyclist in the street. The cyclist’s resulting medical expenses may well exceed what your auto insurance policy covers. The umbrella policy will protect you from paying out of pocket to cover those costs. Similarly, if the cyclist charges you with negligence, the umbrella will cover your legal expenses as well as any judgments made against you.
Excess liability also protects you in ways you might not expect, including factors seemingly unrelated to your car, including personal injury protection, false arrest, wrongful imprisonment, malicious prosecution, defamation of character, invasion of privacy, and more.
So it’s easy to see how an inexpensive an Umbrella Policy is and how it can protect you, your car, your assets, and your home. Still have questions? CarInsuranceQuote.com can help by providing information and knowledge in choosing the Umbrella Insurance Policy that is right for you. Don’t wait for the unthinkable to happen.