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Why Should You Get an Umbrella Policy?

By October 8, 2014June 9th, 2020Auto Insurance, Home Insurance

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Does this sound like a nightmare you’ve had?

You’ve packed the family into your car. Now, you are all headed out of town to enjoy some time with the grandparents. You’re not worried because you’re a good driver and have never had an accident before.

Suddenly, something goes wrong. You lose control and collide with an oncoming vehicle. That car just so happens to be a Jaguar – one of the most expensive types of cars you could hit.

Beyond the property damage, every person involved in the accident is seriously injured. The driver of the Jaguar cannot return to work and you’re the one who must pay. It’s going to cost you hundreds of thousands or possibly millions.

Peace of Mind is Priceless

Situations like these happen daily. One thing goes wrong and suddenly a costly accident drains your savings and changes your life forever. Good thing you have insurance, right?

Unless you have an umbrella policy, your insurance might not cover the full cost of the accident.

For drivers, each insurance policy comes with liability limits. The minimum liability limits in Missouri that every driver must carry include:

  • $25,000 for bodily injury, per person. (The cost of medical testing, procedures, and any long term injuries will likely exceed this quickly)
  • $50,000 total for all bodily injury costs. (This is the limit for all persons injured in the accident)
  • $10,000 for total property damage. (This is not enough for most Jaguars or many cars on the road)

The cost of injuries and property damages can add up fast. If you’re only covered under the state minimum liability limits, you must pay for whatever exceeds these costs.

An umbrella policy changes that.

With an umbrella policy, you have peace of mind. If your liability limits are exhausted, your umbrella insurance will take over and pay the excess amounts not covered by other insurance plans.

Benefits of Having Extra Liability Coverage

Surprisingly, many people opt out of getting an umbrella policy. That’s because many people do not know that it is available or the benefits of having this kind of coverage. They are also concerned with the cost of having such extensive coverage.

Umbrella policies might cost less than you think. In an effort to help you make the best decision for your family, here are a few of the core benefits of having some extra liability coverage:

  • Protect your family’s finances in case of a serious accident.
  • Safeguard your assets in case of an insurance claim.
  • Get affordable coverage for extensive additional protection.
  • Sleep better at night knowing you and your family is completely covered.

Above and Beyond

An umbrella policy covers more than just home and car accident costs. It also offers protection above and beyond what your insurance policies cover.

Some of the extras offered in many umbrella insurance plans include:

  • Coverage for your spouse and family members, in addition to yourself.
  • Coverage for legal defense fees in case your claim goes to court.
  • Coverage beyond your car and home with worldwide protection.

As you start to consider the “what if…” scenarios, make sure you have enough coverage. If not, it may be time to speak to an insurance agent to learn more about these important insurance plans.