According to seasoned veterans of the 21st Auto Insurance Company, the extra coverage of an umbrella liability policy can provide extra protection. If you are ever sued for a motor vehicle accident, are you certain that your current automotive coverage would pay for all of your legal fees and any judgments that could be made against you? The truth is you could end up paying a significant amount of these fees yourself. Like many policy holders, you may be unaware of the fact that your current policy only covers a set limit of any fees that could be held against you. We live in a society where it is possible for anyone to end up sued at the drop of a hat. That’s why it’s important that you consider purchasing additional coverage. An umbrella liability policy is a good way of insuring you have all the protection you need.
How Does an Umbrella Liability Policy Work?
Umbrella coverage works very much as the name implies. It covers you once you reach the limit of coverage provided by your basic automotive insurance policy. An umbrella liability policy can give you much needed protection against various lawsuits that could be brought against you such as a car accident that results in you being sued for more than your basic insurance can cover. Your basic insurance policy has a limited amount of liability to settle any legal claims brought against you. But if you were involved in a settlement for $750,000 and your current policy’s liability insurance only covers up to $300,000, you are legally responsible for paying the remaining $450,000. That means every asset you own would be considered payment toward that debt.
This is a situation that deserves serious consideration from any automotive policy holder. In a time when frivolous lawsuits have become the norm, you can’t afford to delay your decision to protect yourself and your assets with the additional coverage of an umbrella liability policy. It could end up providing you with unbeatable protection against the unexpectedly high costs associated with legal expenses. This extra insurance can in some cases pay up to $5 million or more for a single claim.
The Cost of Extra Coverage
Umbrella liability insurance policies are actually quite affordable. The average cost for a premium covering up to $1 million dollars is anywhere from $200 to $300 a year. The cost of an individual premium is determined by the amount of coverage you select, the insurance company that issues your policy, and personal criteria such as the number of traffic violations you have on your driving record and in some cases your credit.
Avoid Being Under-Insured
One mistake many people make is being under insured because they underestimate the real costs of an automobile accident. You may think that you only need a $1 million policy because your assets total that amount, but what if you end up with a judgment against you totaling $5 million? You face losing all of your assets and still owing money. Your future income or any inheritances you stand to receive are all at risk.
Umbrella policies come with high deductibles around $300,000 or more. They won’t kick in until your other policies have paid up to their limit. Your auto liability insurance policy should equal your deductable. This should insure that you have proper coverage. To get the best rate, try to get your umbrella liability insurance policy from the same company that manages your basic auto insurance policy. This can help minimize the confusion of shifting payment responsibility back and forth if you do wind up needing the liability each policy provides.
Don’t delay. Get rates on the coverage you need by putting your zip code into the quote box on the home page, and 21st Auto Insurance Company will provide you with reliable quotes for an umbrella liability policy.
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November 5, 2012November 5, 2012 0 Comments