Why are Personal Umbrella Policies a Smart Choice?
Most consumers think that personal umbrella policies are only to protect them in the event they are found at fault in the an auto accident or an accident at their home. Personal Umbrella policies also protect you in the event you are involved in an auto accident with a driver who is not insured or is under-insured.
Most umbrella carriers now offer uninsured and under-insured motorist coverage on their polices. Here is a real life example of how the coverage would respond in the event of an auto accident.
Rita was driving home from work when she is rear ended by another driver, causing her car to hit a light pole. The driver of the vehicle was uninsured and attempted to flee the scene but was later apprehended. Rite was seriously injured in the accident.
Rita’s primary auto insurance policy paid out the full amount of the uninsured motorist limit on her policy. However, this was not enough to cover all of Rita’s medical expenses. Rita had a personal umbrella policy with uninsured and under-insured motorist coverage. Rita’s umbrella policy was able to coverage the remaining $260,000 in medical expense. If Rita didn’t have this extra layer of protection she would have been stuck paying the additional medical cost out of pocket or going to the expensive of a lawsuit against the uninsured driver with no guarantee that she would have collected any damages from them.
Just one of the ways you haven’t thought about your insurance.