Umbrella Coverage for Your Car: Do You Need It?

Like many things in life, insurance is not perfect. When it comes to coverage, the truth is that most policies—including car insurance— don’t cover everything. That’s where umbrella insurance steps in and provides additional coverage when your other insurance isn’t enough. While many people think umbrella insurance acts like a “catch-all,” it doesn’t cover everything your general insurance won’t. However, it does help protect your assets in certain lawsuits.

Want to know more about umbrella coverage, including how car umbrella insurance works and what it covers? Read on.

What is an Umbrella Policy?

Umbrella insurance is an additional form of insurance that provides coverage and protection beyond your homeowners, boat, or car insurance policy coverage. It’s like a form of personal liability insurance that covers your assets when you exhaust your policy limits. 

Umbrella insurance provides coverage for injuries, property damage, and other personal liability situations such as auto accidents. It will pay out damages up to your liability limit and associated legal costs over and above that amount.

What Does an Umbrella Policy Cover?

If you’re in a severe car accident and it’s your fault, umbrella insurance provides coverage for: 

• Property damage liability – If you cause damage or loss to another person’s tangible property, including a vehicle, umbrella insurance will cover the costs.
• Body injury liability – This includes injuries to another person’s body due to a car accident that is your fault are covered, including their medical bills. Other body injury liability examples include injuries that happen on your property or by your dog.

Additionally, an umbrella policy covers:

• Landlord liability – It covers rental property injuries due to damages.
• Personal injury lawsuits – You’ll be covered from slander lawsuits, false arrest, defamation of character, and more.

What Isn’t Covered by an Umbrella Policy?

Umbrella insurance does not cover all types of vehicles. For instance, it may not provide coverage for cars exceeding a specific weight limit, such as farm tractors or trailers, recreational motor vehicles, etc. Additionally, an umbrella policy will not cover damage to your car or damage to your property.

An umbrella insurance policy does not cover acts such as discrimination, intentional property or bodily injury, and other malicious actions.

Do I Need an Umbrella Policy on My Auto Insurance?

Having an umbrella policy is an economical way to protect your assets if you get into a car accident, and you are at fault. Even if you don’t have any assets, umbrella coverage protects your wages from garnishment. 

Umbrella coverage for your car is more affordable than you think. At InsureOne, we can help you find an umbrella car insurance policy and learn more about your options. Start your free umbrella insurance quote online, over the phone, or visiting one of our offices near you.