What to Expect from an Umbrella Insurance Policy

An umbrella insurance policy can be a great addition to your already existing auto insurance coverage. Umbrella policies are a type of liability insurance. You can only purchase an umbrella policy on top of your coverage, meaning it cannot be your only form of insurance. An umbrella policy provides a ton of coverage, for a low cost in the event that you are at fault in an accident. Car accidents can range from a small fender bender to multi-car collisions that can involve serious injury. If you are deemed at fault in one of these actions, you are going to need a lot of insurance to cover yourself. There may even be a lawsuit which can start in the hundreds of thousands, or even millions of dollars range. Umbrella policies typically start at one million dollars and can go up as high as five million dollars. They are fairly inexpensive for the amount of coverage they provide. You would be looking at around $250 per year for your annual premiums for this amount of coverage. The umbrella coverage can help you in the event your primary policy is not enough to cover the accident you have. If the accident involves multiple cars and people, you may be on the hook for damages to some or all of the cars, medical bills to those who were injured, as well potential lost wages. The amount you would need to pay would be determined by the courts, but the umbrella policy would cover you for sure.