Auto Claim Exceeds Limits | Brockman Insurance Group

What happens when your auto insurance isn’t enough?

You are a responsible adult and have auto insurance but did you know that your policy might not be enough in the event that you cause an accident? For example, if you are at fault for an accident and others are injured, you could face devasting financial consequences.

Let’s say that you cause a three-car pile-up. The people in the other vehicles are injured seriously. Your auto insurance covers $250,000 in bodily injury liability but the total claims for medical, lost wages and pain ends up being $900,000. You are responsible for the $650,000 difference if you don’t have an umbrella insurance policy.

Another scenario is that your newly minted driver goes out driving with a few of his friends. While driving, he blows through a red light and hits another car. He ends up causing injuries to the other driver, their passenger, and totals the other car. How are you going to afford to pay the medical bills for the victims as well as protect yourself from being sued? This is where umbrella insurance can be a lifesaver.

What is an umbrella insurance policy? Basically, it is a safety net. This coverage is extra liability coverage that could pay the difference once your auto insurance liability limit has been reached. This extra layer of protection can protect you from having to pay the difference out of your savings, your investments, your home equity and even potential future wages.

An umbrella insurance policy can:

Extend your liability coverage

Can cover legal fees and attorney costs

Having an umbrella insurance policy can help give you peace of mind. Don’t have a gap in your insurance policy. Learn more on what types of gaps you might have in your current insurance policies and how an umbrella insurance policy can help at Free Insurance Policy Review

Having an umbrella insurance policy can also rescue you in the event you have a homeowners insurance claim that extends beyond your policy limit. The umbrella policy could kick in after your homeowner’s insurance policy has been exhausted. In essence, it extends your liability coverage and can also pay for legal costs. A few scenarios where an umbrella insurance policy could help include:

Your son has friends over and they decide to jump on the trampoline in your backyard. One of the friends gets injured and requires surgery. Who is liable? Most likely you as the homeowner will get dragged into the financial finger pointing.

You host a party. One of your guests slips on the pool deck and ends up in the hospital. They will be out of work for months to heal. Who is liable? Does their insurance pay for their expenses or does it come down to your homeowners insurance?

Finally, if you are a person of high net worth, own a vast amount of real estate, or are a CEO of a business, you might want to consider having an umbrella policy in order to protect your investment properties and your personal assets. In the examples above, the victim could sue you and you could lose your assets.

Learn more about umbrella insurance at Umbrella Insurance Coverage.

Most umbrella policies extend the liability coverage for bodily injury to others, damage to others’ property and legal defense costs when the insured is found liable. Umbrella policies are a low-cost way to protect you, your family, and your assets. Typically, policies start at $1 million in coverage and could go higher.

Here at Brockman Insurance Group, our agents are ready to assist you with purchasing an umbrella insurance policy. Our umbrella policies are designed to be simple, affordable, and tailored to your needs. We will take you step by step through your options and help you choose the right level of protection for your family.