Reader’s question:

What’s umbrella car insurance coverage, and do I need it?

Grace

Good question.

Umbrella car insurance coverage means something that sounds a lot like its name: it covers your policy. It is the coverage of your coverage. When your coverage runs out, umbrella car insurance coverage steps in. It is a valuable asset when you get into a big accident that ends in a lawsuit which can take up a whole lot of money. Your regular liability car insurance and even home insurance policies may kick in here, but once you run out of those options, the umbrella coverage comes into play. It is just that bit of extra protection that can keep you from being swamped in lawyer fees.

Umbrella policies can help you in cases involving things like slander or libel in your car insurance lawsuit, and this type of coverage is also extremely cheap. For the low amount of less than two hundred dollars every year, you can get as much as a million dollars of coverage with most companies. And if you want to get even more, each extra million costs much less than the first did to add on to your car insurance policy.

If you want to buy umbrella coverage, the requirements are a lot like those for getting gap insurance coverage. You have to be insured to the teeth already. There is no getting umbrella coverage when you only have the minimum liability; you have to have the maximum.

Cheers,

Fashun Guadarrama.