What Does an Auto Umbrella Policy Cover?

Standard auto insurance policies may provide crucial coverage, but sometimes their limits may not be sufficient to cover the full extent of an accident or liability claim. An auto umbrella policy can help cover claims that exceed the limits of your other liability policies.

Many states have low auto liability insurance requirements. With more high-value vehicles on the road than ever, even a seemingly minor car accident could result in a claim that exceeds the limits of a policy that complies with the state’s requirements.

Umbrella insurance isn’t suitable for everyone, so talk to your agent to determine whether this optional coverage may work in your situation.

Understanding Auto Umbrella Insurance

An auto umbrella policy is designed to protect you financially when the costs of an accident or lawsuit exceed the coverage limits of your standard auto insurance policy. An umbrella policy typically covers the following:

• Liability coverage—If you are at fault in an auto accident that results in third-party bodily injury or property damage claims, your umbrella policy can step in to cover the expenses that exceed your underlying auto insurance limits.
• Legal defense costs—If you are involved in a lawsuit following an accident, an auto umbrella policy can help cover legal defense costs, such as attorney fees and court expenses.
• Coverage worldwide—Auto umbrella policies often provide coverage not only in the United States but also in other countries. So if you’re involved in an accident while traveling abroad, your umbrella coverage may provide protection.
• Protection beyond auto—Umbrella insurance can also provide additional liability coverage for other personal liability situations, such as a liability claim arising from a rental property or a boating accident.

Why You Need Auto Umbrella Coverage

An umbrella policy is a valuable tool for safeguarding your assets, such as your home, savings and investments. Without it, you could be personally responsible for covering the costs that exceed your primary auto insurance limits.

Umbrella policies are typically cost-effective, considering the high level of coverage they provide. They usually offer a significant amount of coverage for a relatively low premium.

Contact Us

An umbrella policy can be crucial to your risk management strategy. Contact M.L. Ruberton Agency in Hammonton, New Jersey, to learn more about umbrella insurance and get 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.