Umbrella Policies
Accidents are unpredictable. Moreover, they tend to be accompanied by severe consequences. Health issues and damage of property is ever on the list, but thanks to insurance policies, the financial strain resulting from the misfortune is curbed. At times, the accidents we get involved in end up damaging other people's properties or health. Many such scenarios cause disagreements that may be needed to settle in court; unfortunately, your auto insurance may be too little to cover the damage done.
Paying lawyers, compensating the other parties involved in the accident may force you to dig deep in your pockets, and in most cases, you end up bankrupt before you know it. That is when umbrella insurance policy steps in. Umbrella policy shields you from most lawsuits. Furthermore, it covers the damage which other insurance policies fail to cover.
Most of the time, individuals with auto insurance do not see the need of having an umbrella policy, but if you own a car or any other type of vehicle, umbrella insurance should be part of your priority list. Let's explore the reason;
The Umbrella Policy Significance To Your Car Insurance
Imagine yourself on a road trip, listening to your favorite jam while driving, then suddenly you crash on another car. Unfortunately, the vehicle you have crushed into is more damaged than yours. Such a situation automatically lands you in trouble; the blame finger will be pointing on you.
You will be forced to pay for medical bills of the victim, and when matters involve the authorities, a good lawyer becomes a priority. Auto insurance has two main components related to umbrella policy; body injury liability and property damage, the two pay for someone else's damage cost. When the financial loss exceeds the average body injury and property damage liability coverage, you will be forced to use your funds, but with an umbrella policy, it shelters you and takes care of the cost of all the other liabilities which your car insurance failed to.
What Does an Umbrella Policy Cover?
1. Legal Fees
The damage done by your vehicle at times may arouse the victims to file some law suites which can be costly at times, the umbrella policy, sorts out your legal fees together with court costs in lawsuits. Something which without the insurance, would have turned your life in an unexpected direction.
2. Property Damage
If your vehicle accidentally crashes into your neighbor's garage or playground, the policy covers all the damage expenses which your auto insurance may not be able to cover.
3. Body Injuries
In a car accident, if you injure someone, the umbrella policy covers any medical bills that are beyond your car insurance limits.
What you should also know is that umbrella insurance only shields you from being sued. In accidents where you are the one who is hurt, your health insurance would pick the tab, but if the liability exceeds the limits of your health insurance, you will be forced to fund yourself.
With an Umbrella Policy, you can rest assured that you along with your property are free from costly lawsuits. It's best to spend some few thousand dollars to get yourself covered by the policy for a better tomorrow.