Why Drivers Should Consider a Personal Umbrella Policy for Major Car Accident Lawsuits 

A personal umbrella policy is extra liability insurance that kicks in when your standard auto or homeowners insurance reaches its limit. It’s designed to protect your assets, like your home, savings and future income, from large liability claims or lawsuits.

Minimum bodily injury and property damage auto liability coverage is required in .

These limits are often insufficient in serious accidents, especially those involving multiple injuries or expensive vehicles.

How a Personal Umbrella Policy Works in a Car Accident Lawsuit

Let’s say you’re sued for $500,000 after a car accident. Your auto policy covers $100,000. Without umbrella insurance, you could be responsible for the remaining $400,000, potentially risking your home, savings and future earnings.

A personal umbrella policy may protect your financial future by covering that $400,000 and your legal fees.

Why Drivers Need Umbrella Insurance

Despite recent increases, ’s minimum liability limits may not cover the full cost of a serious accident. Medical bills, lost wages and property damage can quickly exceed these limits.

follows a tort system, meaning the at-fault driver is financially responsible for damages. If you’re found liable, your insurance pays first, but anything beyond your policy limits comes out of your pocket.

If you own a home, have savings or earn a high income, you could be at risk. Umbrella insurance acts as a shield against financial ruin.

Learn More

A personal umbrella policy is one of the most cost-effective ways to protect yourself from the financial fallout of a major car accident lawsuit. Contact Plemons Insurance Agency for a quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.