What Is Umbrella Car Insurance
The term “Umbrella Insurance” seems to come up more and more frequently nowadays and that leaves a lot of people wondering “what is umbrella car insurance?” as well as whether or not they should buy this coverage. Find out more about this policy and get online insurance quotes auto from our website.
Umbrella insurance is extra liability insurance. it is meant to help protect you from large and potentially devastating liability claims or judgments. Personal umbrella coverage comes into play when your underlying liability limits have been reached. Also, it provides coverage for claims that may be excluded by other liability policies including: false arrest, libel, slander, and liability coverage on rental units you own. Of course, we assume that your umbrella insurance doesn’t state the same exception. It’s very important to carefully analyze the fine print of your policy for just this reason. Readers should be aware that when this type of insurance is used in this way, there is a fee similar to a deductible that the insured person must pay before the insurer pays out. That fee can range from $250 to $10,000.
This policy protects you when you have astronomical sums to pay. For example, you hit a car and you are found guilty. If the other driver’s injuries are severe, you may be legally responsible for damages beyond the limits your car insurance policy covers. And, if he sues you, your personal assets could be at risk of being sold for reimbursement. Imagine if that injured driver were a surgeon or another highly paid professional. If the accident you caused resulted in an injury that kept him from doing his job for six months or more, expect for him to sue you for $1 million to cover the time he’s away from work. In this case, only an umbrella policy can save you.
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