Are you worried about whether your liability auto insurance will cover the cost of an accident? You can increase your coverage limits, but if you’re in a situation where you need more than the maximum coverage limit, you may need personal umbrella insurance.
But what is a personal umbrella policy? Don’t worry — we’re here to help.
Read through this article to learn more about personal umbrella insurance and how you can secure a personal umbrella policy quote.
Are you ready to shop for personal umbrella insurance? Use our free online quote tool above to compare multiple companies in your area.
What is personal umbrella insurance?
Personal umbrella insurance is insurance coverage that provides extra coverage for cars, injuries, homes, and watercraft. A personal umbrella insurance company covers other situations, too. Let’s look at a list of things that personal umbrella insurance covers.
- Bodily injury
- Personal injury
- Property damage
- Landlord liability
- Libel
- Pet attacks on others
Did you know personal umbrella insurance also protects your family? If your spouse gets into an accident, personal umbrella insurance provides coverage if your car insurance policy can’t cover the total cost of bodily injury or property damage.
Coverage from a personal umbrella insurance company can even pay out a claim if your child posts something offensive online. Personal umbrella insurance can cover legal defense fees if you happen to get sued.
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What doesn’t personal umbrella insurance cover?
Personal umbrella insurance is strictly liability insurance coverage. In other words, it only covers the cost of damage, injury, or other situations where you’re at fault. If a family member or pet is at fault, personal umbrella insurance pays out, also.
Any situations that involve a crime or intentional harm you’ve committed won’t be covered. When you file a claim, your personal umbrella insurance company will investigate your claim before paying anything.
How much are personal umbrella insurance rates?
Many factors determine whether affordable personal umbrella insurance is available to you. On average, you could pay between $150 to $300 a year for a $1 million policy limit. Your credit score and policy limit amount affect your personal umbrella insurance quotes the most.
Why is your credit score important to personal umbrella insurance?
According to the Federal Trade Commission (FTC), credit scores correlate to risk. Good credit scores correlate to a lower risk of filing a claim, while poor credit scores correlate to an elevated risk.
Who should buy personal umbrella insurance?
Anyone with many assets or new wealth should invest in personal umbrella insurance. Lawsuits, bodily injuries, and property damage can cost more than expected. Regardless of how much money you earn, you don’t want to pay out of pocket each time an accident happens.
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Where can I get personal umbrella insurance?
If you’re not sure where to get personal umbrella insurance, start with the best companies. Check out this list to see which companies have the best personal umbrella policies in the United States.
- Allstate – Known for its low monthly rates
- Chubb – Best for its high coverage limits
- Liberty Mutual – Known for its competitive rates
- Travelers – Ideal policy for business owners
- USAA – Best company for military veterans
Why stop here? Many insurance companies have personal umbrella policies. Compare multiple quotes to ensure you’re getting the best deal.
What are the advantages and disadvantages of personal umbrella insurance?
If you’re not sure if you should get personal umbrella insurance, review the benefits and drawbacks of having a personal umbrella insurance policy below.
Comparing Personal Umbrella Insurance Pros & Cons
| Personal Umbrella Insurance Pros | Personal Umbrella Insurance Cons |
|---|---|
| Provides extra liability coverage and legal defense expenses when coverage limits of your insurance company have been used up | You're still required to buy the minimum car insurance and property insurance before purchasing personal umbrella insurance |
| Covers incidents that your insurance provider may not, including slander and libel | You're required to have a current auto or home insurance policy |
| You get a $1 million coverage at the least | Your costs increase if you need more on your coverage limit |
| Coverage applies anywhere in the world | |
| It covers rental property for which you don't have insurance | |
| Cost-efficient compared to liability car insurance |
Based on our research, there are more pros than cons for getting personal umbrella insurance. One of the major downsides to personal umbrella insurance is the variable costs for customers.
Personal Umbrella Insurance: What’s the bottom line?
The best car insurance companies carry personal umbrella insurance. If your current auto insurance company doesn’t have personal umbrella insurance, you should shop around until you find a policy that works best for you.
Now that you know more about personal umbrella insurance, enter your ZIP code in the free comparison tool below to compare multiple companies near you.
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