Basic Facts About Umbrella Car Insurance

When we think about umbrella, we think about extra protection when it rains. And this is exactly what “umbrella” insurance does for you: it offers extra layers of protection when you need it the most. Find out more about umbrella car insurance and get auto insurance quotes from us.

auto_insuranceIt is a policy that gives you extra liability insurance above what you have on your auto. Liability insurance pays for the damage you cause in an accident. It is one type of coverage that will help you avoid being sued and spend some time in jail, or have your assets confiscated by authorities and sold in order to cover for reimbursement.

Umbrella insurance starts paying out after you’ve used up the liability amounts in your auto or homeowner policy. For example, you are at fault for a big car accident with multiple injuries. If your car insurance does not cover all the medical bills, your umbrella policy kicks in. Without the umbrella insurance, you could be sued for damages that are above your car insurance limits.

Umbrella insurance usually covers the following:

  • Medical bills, lost income and funeral benefits of people in a crash you cause.
  • Property damage to others.
  • “Personal injury” such as libel, slander, defamation and invasion of privacy.
  • The legal fees to defend you.

In order to get access to umbrella insurance features, insurance companies require you to buy a certain level of auto and home insurance. In other words, you can’t buy the state-required minimum of car insurance to save money and then buy umbrella insurance. The minimums needed could be $300,000 in liability on both your auto and home insurance, for example. Your insurance agent can tell you more about this feature and how to get it, depending on your carrier.

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