Do You Need Umbrella Insurance If You Have Car Insurance?

You may need umbrella insurance to supplement your car insurance if you have extra liability due to your driving habits. This coverage is also a good idea if you have a lot to lose financially and would benefit from the enhanced liability protection.

Is Car Insurance Enough

Your state law requires you to hold a minimum coverage amount before going out on the road. Unfortunately, if you end up in an accident, these coverage limits may not be enough to pay for the costs of someone’s medical bills, property damage, or car repair. That is where your umbrella insurance policy will jump in to cover the remaining expenses, so you don’t have to dip into your personal finances to pay for the damages if you are at fault.

What Umbrella Insurance Can Cover

Car insurance policies cover bodily injury and property damage liability when you are at fault in an accident. Your umbrella coverage is different from comprehensive car insurance, which covers personal injury and damage to your vehicle. Instead, umbrella insurance policies work with your existing coverage. If you hit someone’s expensive car and are responsible for the repairs, your car insurance coverage will reach its limit well below the expense. Umbrella insurance policies typically have coverage of $1 million or more and will help to make up the difference in coverage and pay the rest of the expenses for damages for which you were found to be at fault.

Drivers Who Might Need Umbrella Insurance

Umbrella insurance policies are a good idea for drivers who find themselves in a position of increased liability. Do you drive often to get to work? The more often you drive, the more risk you take on. The risk gets even higher when you drive with additional people in your car, who add to your liability in the event of an accident. 

Drivers with a significant amount of assets can lose them if a court finds them at fault for an accident. If you are poised to earn a high income or already have significant savings, you will want to purchase an umbrella policy that will pay for the settlement so you do not have to lose your hard-earned money.

Do you drive for a ride-share company? You take on added liability that your regular car insurance will not fully cover. An umbrella policy can fill these gaps in coverage to protect you from that risk.

Adding an umbrella insurance policy to your car insurance will increase your coverage and protect you if you have significant finances that would have been targeted in court or if you have increased liability and need added protection to cover the costs of potential damages. For help finding an umbrella policy that works for your needs, contact All Things Insurance. Our team will help you assess your risk and find the right coverage to supplement your car insurance.