Umbrella Insurance Policy Quote


Bryan Huynh

- Updated February 20, 2024

Key Takeaways

  1. More drivers are getting umbrella insurance for extra protection beyond standard policies.
  2. One umbrella policy usually covers both home and auto, but higher coverage options are available.
  3. If accident costs exceed your standard insurance, you could be sued for the extra. Umbrella insurance helps cover these excess costs.
  4. Umbrella insurance starts at around $200/year but can vary based on coverage.
  5. Think about your assets, local laws, car value, and lifestyle to decide on the right coverage.
Umbrella Insurance Policy Quote

Umbrella insurance is a type of business insurance that is often inexpensive and provides protection against potential legal judgments or claims that exceed your home and auto insurance policy limits, meaning it can serve as a safety net for when life throws us curve balls. The coverage kicks in when the liability limits on other policies have been exhausted.

In this blog post, we’ll take a look at what umbrella policies are all about, why they’re important, and how you can get started exploring your options today.


Studies on Umbrella Insurance

According to a study conducted by the National Association of Insurance Commissioners in 2022, umbrella insurance policies have become increasingly popular among drivers, especially those who are underinsured. The study found that nearly one-third of all drivers who purchased umbrella insurance had previously been deemed underinsured. This suggests that many drivers are recognizing the need for additional protection beyond their traditional auto insurance coverage.

The report also found that over 60% of drivers who purchased more than enough coverage for their vehicles experienced lower rates on their premiums than those who did not purchase extra insurance. This suggests that buying umbrella insurance may be financially beneficial for some motorists even if they do not consider themselves to be at risk for an accident or other incident covered by their policy.


Umbrella Insurance Policy Basics

An umbrella insurance policy is a type of liability coverage that provides additional protection beyond the limits of your existing policies. It covers a wide range of potential liabilities, such as:

  • libel and slander
  • personal injury
  • false arrest
  • malicious prosecution
  • legal fees

Common types of losses covered by umbrella insurance include expenses resulting from an auto accident or injury, damage to property due to a fire or natural disaster, and liability for accidents on personal or business property. In addition to these common scenarios, policyholders may find they are also covered for damages resulting from rental cars and boats, or even pet-related incidents. It is important to note that some policies may not cover intentional acts of harm.

Do I Need a Separate Home and Auto Umbrella Policy?

Whether or not you need separate umbrella insurance policies for both your home and car is a question that many people have. In most cases, the answer is no, as one policy will generally suffice to protect all of your assets. However, there are some situations where having multiple umbrella insurance policies may be beneficial.

The exact amount and type of coverage will vary depending on the individual policy but generally speaking, umbrella policies can provide up to $1 million in additional liability coverage. However, some insurers may offer higher levels of coverage, such as up to $10 million or more in additional protection. Everyone may not be covered by umbrella insurance as this type of policy usually requires individuals to already have a certain level of basic liability insurance coverage before they can qualify for an umbrella policy.

Does Umbrella Insurance Cover People and Vehicles?

Umbrella insurance can cover both people and vehicles but will depend on the specific details outlined in your policy. For example, if you are found liable for an accident involving a vehicle you own then your personal umbrella policy may provide financial protection for any damages that exceed the limits outlined in your auto insurance policy.

On the other hand, if you are at fault for an accident involving someone else's car then their car insurance policy would be responsible for covering any damages while your umbrella policy could cover any expenses that exceed their car insurance limits.

Do I Need an Umbrella Insurance Policy?

If you have assets or property that could be put at risk if you are found liable for something like a car accident or medical malpractice lawsuit, then an umbrella insurance policy can provide extra protection for those assets. It can also help protect your income if you are held personally liable for something like libel or slander. Basically, if you have any substantial assets or income that could be put at risk by lawsuits or other legal actions, then having an umbrella insurance policy may be worth considering. Keep in mind, you don’t have to be a millionaire to get sued. If you own a business or non-homestead exempt home, these assets could potentially be seized if someone sues you and wins.

What if My Insurance Coverage Isn’t Enough?

If your insurance policy isn't enough to cover an automobile accident, it can be a stressful and confusing situation. Depending on the severity of the accident and the extent of the damages, you could be facing hefty repair bills that exceed your insurance coverage. This means you will have to take responsibility for paying for any costs above and beyond what is covered by your policy. Before signing up for a policy, make sure you understand exactly what type of coverage is offered, as well as the limits of this coverage. It is also important to consider any additional protection that may be necessary to adequately protect yourself from financial loss in case of an accident.

In some cases, if you do not have enough coverage and cannot afford to pay out-of-pocket expenses related to a car accident, you may need to seek legal assistance or alternative payment options such as financing or loans.

Depending on state regulations and policies issued by specific providers, uninsured motorist coverage may be available to help cover medical costs in the event of an accident with another driver who has insufficient or no insurance at all. If this happens, it’s important that those affected are aware of their rights concerning filing a claim against the other party’s insurance provider.


Can I Get Sued if I Don’t Have Enough Insurance Coverage?

If you get in an auto accident and the damage exceeds your insurance policy, the other party may be able to sue you for much more than just the cost of the repairs. They could go after any of your assets, such as cash in bank accounts, investments, vehicles, furniture and appliances, jewelry, or your home. Depending on the laws in your state, they may also be able to place a lien on your real estate or other property as a way to secure repayment.

If they believe that your negligence or recklessness caused their damages, they might also seek out damages for their medical bills, economic losses related to lost wages, or business income due to injury, pain and suffering, and emotional distress not covered by insurance. Therefore it's important to make sure that you have enough liability coverage in case of an accident so that your personal assets aren't at risk.

The primary benefit of having ample insurance coverage is that it protects you in the event a third-party individual files a lawsuit against you relating to an accident involving your vehicle. So, if another party claims that they have suffered injury or property damage due to your negligence while driving, then having adequate car insurance can help cover any legal costs associated with defending the claim or settling it out of court.

A good rule of thumb is to get at least double the amount of coverage required by law to provide yourself with some additional protection in case of litigation.

Even if there isn't any legal requirement related to car insurance coverage levels, other factors can influence how much coverage is necessary depending on where one lives and drives. For example, urban areas tend to have higher levels of traffic congestion and thus an increased risk for accidents compared to rural areas; therefore those who live and drive in cities may want higher amounts of insurance coverage compared to others living in less populated suburban or rural settings. Additionally, those who drive high-end vehicles may also consider higher levels of coverage to protect their investments better than what their standard policy might cover.

Is Umbrella Insurance Expensive?

Umbrella insurance is generally very affordable and can be tailored to fit individual needs and budgets. It is often quite cost-effective when one considers how much coverage it provides and the peace of mind it can offer in case of an unforeseen financial loss. Depending on the carrier, umbrella insurance policies typically start at $200 per year and can range up to $2,000 or more for higher amounts of coverage guaranteed.

The overall cost of umbrella insurance varies based on factors like the type and amount of coverage desired as well as the deductible chosen by the insured person. Generally speaking though, most people find that umbrella insurance is not only affordable but it also offers great protection against financial losses due to unexpected events such as accidents or lawsuits.


How Do You Determine Your Insurance Coverage Needs?

First and foremost, consider your assets. How much money do you have in the bank? Do you own any valuable property such as a house or condo? Do you have any investments, such as stocks or bonds? Do you own a business? All of these assets should factor into your decision when buying auto insurance because they represent what you have to lose if something happens to your vehicle.

The amount of coverage required by law may also help guide your decision-making. States require a minimum amount of liability insurance which covers damage to other people and their property resulting from an accident caused by the insured driver. This liability coverage does not cover repairs to the insured’s vehicle nor does it provide for medical bills for those injured in the accident; if these items are important to the insured, then additional coverage should be purchased beyond the state-mandated minimums.

Consider the value of your vehicle itself when determining how much auto insurance coverage is needed. Some cars are more expensive than others and therefore may require more extensive protection with higher limits or additional endorsements on their policies in order to fully cover potential damages or losses incurred due to an accident or theft.

Don’t forget about your personal habits and lifestyle when choosing auto insurance coverage levels. If you frequently drive long distances or take part in extreme sports activities (such as off-roading or racing), then higher levels of coverage might be necessary to provide greater protection against accidents and loss.

If you often carry expensive equipment with you (like photography gear) that could potentially be damaged during a collision or other incident involving your vehicle, special endorsements might need to be added to the standard policy for adequate protection against loss due to theft or damage-related events.

Getting an Umbrella Insurance Policy Quote

If you’re considering getting an umbrella insurance policy quote, there are several things to keep in mind when shopping around for coverage. First off, make sure to compare policies from several different companies to get the best rate possible. Secondly, look into discounts offered by certain companies based on factors such as good credit scores or multiple policies with the same company.

Finally, ask questions! Make sure to understand all the details of the policy before deciding so that you know exactly what kind of coverage and protection you’re getting – and paying for – with your new policy.

An umbrella insurance policy can provide valuable protection against potential liabilities and lawsuits that may exceed the limits of your existing policies – but only if it’s right for your individual situation and needs. Before making any decisions on which type of coverage to purchase, make sure to do some research on various types of policies available as well as shop around for quotes from different companies so that you can find the best rate possible for maximum financial protection.

With this information in hand and a little bit of effort up front when researching options and seeking out quotes from various providers, you can make sure that whatever decision you make about purchasing an umbrella insurance policy will be well-informed!

About The Author

Bryan Huynh

Bryan Huynh

Product Tester & Writer

Bryan Huynh is a dedicated Product Tester & Writer. Just as insurance has your back, Bryan works to review and inform you about the wide range of insurance products available, ranging from business, auto, health, home, pet, to life insurance.

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