How Umbrella Auto Insurance Coverage Benefits Policyholders

Umbrella auto insurance coverage provides an extra layer of protection to policyholders. A standard auto insurance liability policy pays for claims made by the occupants of the other vehicle in an accident. Personal injury and property damage claims are covered under this type of protection. The liability coverage also pays for legal fees incurred in defending lawsuits filed on behalf of those injured or killed in the incident.

If the level of damages caused is higher than the at-fault driver’s policy limit, the difference must be paid by him or her personally. This is where umbrella auto insurance coverage comes in. It provides an extra amount of liability coverage to people who have substantial assets to protect. An advantage to buying this type of protection is that it is relatively inexpensive in comparison to standard auto insurance liability protection. An umbrella policy can provide up to $5 million in additional coverage to a policyholder and it will top up his or her homeowners’ and auto insurance policy.

A consumer who is looking for umbrella auto insurance coverage can buy this coverage from his or her existing insurance provider or get a policy from another company. Not all home and auto insurance companies offer this type of coverage, and shopping around to get quotes from more than one provider is a good strategy for finding the right protection.