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Should You Get an Umbrella Policy If You Have Car Insurance?

Jun 21, 2023

Umbrella Insurance

Should You Get an Umbrella Policy If You Have Car Insurance?

When protecting yourself and your assets, having adequate insurance coverage is crucial. While car insurance is for all drivers, some may wonder if they should invest in an additional layer of protection, such as an umbrella policy. An umbrella policy offers extended liability coverage beyond what traditional car insurance policies provide. This article will explore how an umbrella policy works, who might benefit from having one, and the associated costs.

How Does an Umbrella Policy Work?

An umbrella policy is an extra layer of liability coverage that goes beyond the limits of your underlying insurance policies, such as car insurance. An umbrella policy can provide additional financial protection if you are found responsible for causing an accident resulting in significant damages or injuries. It kicks in once the limits of your primary insurance coverage have been exhausted, helping to safeguard your assets and future earnings.

How Much Does an Umbrella Policy Cover?

The coverage limit of an umbrella policy typically starts at $1 million and can go even higher. This substantial coverage ensures that you are adequately protected in a catastrophic event. It can cover expenses related to medical bills, legal fees, property damage, and other liabilities resulting from a covered incident. An umbrella policy can provide you with peace of mind and financial well-being. 

  • Drivers with Many Assets
    An umbrella policy is highly recommended if you have significant assets, such as multiple properties, valuable investments, or a high-income profession. The more assets you have, the more at risk you may be for potential lawsuits. If you are sued for damages exceeding the limits of your car insurance, an umbrella policy can help protect your assets from being seized to satisfy a judgment.
  • Commuters and Carpoolers
    Individuals who frequently commute or carpool may also benefit from an umbrella policy. Spending more time on the road increases the likelihood of an accident. Additionally, carpooling with multiple passengers increases the potential for higher claims in the event of an accident. An umbrella policy can provide extra coverage, ensuring you are adequately protected if an incident occurs.
  • Ride-Share Drivers
    An umbrella policy becomes even more important for those working as ride-share drivers for platforms like Uber or Lyft. While ride-share companies provide liability coverage during active trips, there may be gaps in coverage during certain periods. An umbrella policy can fill these gaps and offer comprehensive protection throughout your driving activities, providing peace of mind when transporting passengers.

How Much Does an Umbrella Policy Cost?

The cost of an umbrella policy can vary depending on several factors, such as the amount of coverage you desire, your risk profile, and your existing insurance policies. An umbrella policy with coverage limits of $1 million can cost between $150 to $300 per year. Considering the potential financial devastation resulting from a lawsuit, this additional cost is often well worth the investment.

Get Umbrella Policy at Fuller Insurance 

To explore your options and determine the best insurance coverage for your needs, contact Fuller Insurance today. Our experienced agents can provide personalized guidance and help you understand the benefits of an umbrella policy in conjunction with your car insurance. Don't leave your financial future to chance – protect yourself with comprehensive coverage, so directly Call us at (800) 640-4238 to learn more. 

 

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