3 Ways Umbrella Auto Insurance Improves Your Car Insurance's Coverage
by Vilma Maki
Many insurance companies offer umbrella insurance as an add-on for your normal auto insurance coverage. These packages aren't just another expense to dismiss out of hand. Umbrellas insurance offers many benefits. Here are just a few of the ways these add-ons can improve your auto insurance coverage.
1. Umbrella Auto Insurance Covers What Your Regular Insurance Doesn't
Umbrella insurance packages can have variations between insurance companies. However, the core function of umbrella auto insurance is to increase the limits of your liability coverage. When your auto insurance reaches its policy limit, the umbrella insurance will help recover what remains.
For example, a small car accident can still lead to injuries that come with damages of hundreds of thousands of dollars. If you're at fault, your auto insurance will pay for those damages.
If you have the minimum amount of insurance, or just not enough, you will have to pay out of pocket once you hit your limits. Umbrella insurance can take a lot of potential pressure off your shoulders.
2. Umbrella Auto Insurance Can Protect Your Assets and Property
Your assets and personal property can become forfeit if you're forced to pay out for a personal lawsuit after you exhaust your insurance limits. Many people don't have the means to pay for someone's expensive medical bills.
Damages for a car accident can also include lost wages, property damage, and even potential future wages. Sometimes, the injured party can require lifelong care. You may not have the money, but you might have assets and property that can clear some of the debt left to you in an injury case.
Your house and car are the obvious assets, but you may also face wage garnishments. Umbrella insurance can help to mitigate the personal cost or eliminate it.
3. Umbrella Auto Insurance Can Cover Things You Can't Cover in Any Other Way
Depending on the insurance carrier, umbrella insurance packages can come with coverage options you may need but can't find. For example, some umbrella auto insurance packages can include things like the following:
- Legal defense costs to help you defend yourself
- Libel and slander protection
- Coverage that applies no matter where you are
- Extended liability for things your normal insurance doesn't cover
Since these packages vary, take some time to consider your options when offered an umbrella policy. Always consider picking up as much insurance as your budget will comfortably allow. Speak with a company such as Reinhardt's Insurance Agency about umbrella options that can work for you.
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About Me
After we purchased our first home, we realized that it might be a good idea to evaluate our insurance coverage. Although we had purchased homeowners insurance before, we had never owned a policy as large as the one we would need for our new place. Also, our new home had a trampoline and a swimming pool, which made us worried about liability. To iron out the details, I decided to meet with our insurance agent. We talked about things like monthly premiums, coverage limits, and deductibles, and it was incredible to learn more about the terminology. This blog is designed to help you with the same types of questions.