Umbrella Insurance for Cars: Umbrella Auto Insurance Options

Adding umbrella insurance to your existing auto coverage may be a very wise thing to do. Umbrella auto insurance is a type of liability coverage that covers you in the event of an at-fault accident. You may think your current auto insurance policy is enough to cover you in the event of an accident, but what if your accident involves multiple cars as well as multiple passengers along with the drivers? If you cause the accident, you are liable for everyone involved. You may also be sued, and that is where the umbrella policy takes over.

What Is Umbrella Coverage?
Most people need insurance for their home, their health and their autos. You have to have certain mandated levels of coverage for auto insurance. However, what if the claim for an accident is greater than your coverage?

This is where umbrella coverage kicks in. It's a supplement to your regular insurance, but not a substitute for it. Umbrella policies are sold at one million dollar increments, sometimes up to five million or more. Umbrella insurance only applies when a judgment goes beyond the limits of your primary coverage. Let's say your liability coverage for a single person is $100,000. If you cause an accident with one person injured, and his claims are $250,000, having umbrella coverage will pay for the additional amount. Without it, you might be liable yourself.

It's generally recommended that if you have a net worth greater than $100,000, you should obtain umbrella insurance coverage to protect your assets, although it's a good idea for everyone who can afford it.

Cost
So what does umbrella insurance usually output as your premium? The average price is around $200 to $400 dollars. That amounts to around $17 to $34 dollars per month to cover you. For the amount of liability insurance you get, this is a small price to pay.

Umbrella insurance providers are a well-kept secret, but one well worth knowing. There are a number of umbrella insurance providers who offer total auto coverage to ensure you never need to worry in the event of a lawsuit.

The Hartford
The Hartford is one of America's best-known and trusted insurance companies. They offer umbrella auto coverage as well as policies covering all areas of insurance. You can purchase umbrella coverage as a stand-alone or as part of greater coverage through the company.

Safeco
Safeco offers umbrella coverage for autos and for homeowners. To obtain their umbrella auto coverage you need to have your basic car insurance purchased through the company as well. In general, coverage starts $1 million, although it's possible to go higher. The coverage extends to all family members, no matter where in the world you travel.

Travelers Insurance
Travelers Insurance is a trusted insurance name and their umbrella coverage means protection of $1 to $5 million. This offers peace of mind in a climate where litigation is the norm, not the exception. It's not necessary to have your other insurance with the company in order to purchase an umbrella policy with them.

MetLife
MetLife markets its umbrella coverage as personal excess liability insurance, which is an apt description of what it actually does. For $1 million in coverage, they charge $200 a year and have a limit of $5 million, although in some states, they'll offer coverage of up to $9 million. Anyone taking out umbrella insurance with MetLife needs to have minimum liability insurance that meets their specifications.

Progressive
Progressive offers up to $5 million in coverage through its umbrella policy. Their premiums begin at around $350 a year, although you should be aware that they don't offer umbrella coverage in every state. Their personal umbrella coverage is more than just for autos and can include jet skis, RVs and the price of a lawyer in the event of a court case. The coverage is worldwide and even extends to defense against libel and defamation of character.

Foremost
Foremost Insurance is well-know, but at the present time their umbrella coverage is limited to residents of Kentucky and Pennsylvania. Anyone applying will need auto insurance through Foremost or Bristol West to qualify.