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Should You Get Umbrella Car Insurance?

toy car on laptop with a person typing on it looking for car insurance

You want to make sure you have ample auto insurance coverage, so your assets aren’t at risk if you get sued. Umbrella coverage provides extra protection, meaning your assets will be protected. You’re probably wondering, “What is an umbrella policy, and what does it cover?” Let’s dig in, so you’ll know if you need umbrella car insurance.

Umbrella Coverage 101 – What Does an Umbrella Policy Cover?

Umbrella coverage is personal liability insurance. You buy this policy on top of your car, boat, or homeowner’s insurance. It protects you if you get sued for personal injury, property damage, and other liability claims that exceed your insurance policy limits. Along with covering the damages, an umbrella policy usually pays for legal costs, even if they exceed the coverage amount.

Example of Coverage

Let’s look at an example of an umbrella car insurance. Let’s say that your teenager is in a terrible car accident that causes property damage and bodily injury. The damages are $1 million, which far exceeds your auto insurance limits. Let’s say you have an umbrella policy with $1 million in coverage: it would cover the damages along with the legal fees.  

Is Umbrella Car Insurance Necessary?

You see how umbrella car insurance is helpful, but you still can’t help but wonder if it’s necessary. Depending on your situation, you might need this coverage to protect you.

First, do you have a lot of assets? If you have a high net worth, you have more to lose if you’re sued. Other drivers are more likely to sue you if they have lots to gain from the lawsuit. You can also expect to be on the hook for a higher judgment when it’s clear you can afford it. If you have more than $100,000 in assets, you’ll benefit from umbrella coverage.

hispanic man driving a car with umbrella insurance

If you have a long commute, it’s also a good idea to get this coverage. When you’re on the road a lot, you’re more likely to get in an accident. Suppose you bring others along on your commute. In that case, the need for coverage is even greater since your passengers might get hurt in an accident.

You should also get this coverage if you drive for a rideshare company. You’re only partially covered with your auto insurance and the company’s policy. The coverage gap makes you vulnerable, but you can fill it with an umbrella car insurance. 

You should also get the coverage if you want peace of mind. Considering that a $1 million umbrella policy usually costs $150-$300, it’s an affordable way to lower your stress level. You’ll feel the stress melt away when you know your assets are safe. 

Get Help Choosing Coverage

Insurance coverage can be confusing, so don’t hesitate to reach out for help. Speak to a licensed insurance agent to learn more about the coverage you need. The insurance agent can provide you with quotes for an umbrella car insurance and even help you decide how much you need. Reach out today, so you can get the protection you need. 

Don’t wait any longer to get the protection your need. Start your free quote online, over the phone, or at one of our offices near you.

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