Owning a car is a privilege that comes with significant responsibilities. Even the safest drivers can cause property damage and bodily injuries if they find themselves in an accident. That is why car insurance agencies recommend that Wisconsin drivers carry adequate liability insurance to cover the cost of expenses when a victim suffers a loss. Unfortunately, some liability claims can be exorbitant, exceeding the limits of a typical car insurance policy. Then what?
Consider the following example:
Imagine driving down a congested roadway on a foggy morning. You spill your coffee on your lap, causing you to accidentally swerve and hit a rider on a bicycle. The person you hit is severely injured and will need multiple surgeries and months of physical therapy. Not only are you responsible for the medical bills, but you are also sued for pain and suffering, lost wages, and legal fees. Altogether, this adds up to hundreds of thousands of dollars, but the liability protection on your car insurance taps out at $100,000. How would you pay the balance of the judgment? Would you have to liquidate your assets? Perhaps you would be subject to years of wage garnishment. Of course, none of that would be necessary if you had purchased a supplemental umbrella policy.
Supplementing Car Insurance with Umbrella Coverage
In the litigious society we live in, you can never have too much liability protection. A certain amount comes standard on your home and auto insurance, but sometimes that isn’t enough. Lives have been ruined and nest eggs wiped out because of financial liability after an accident. Umbrella insurance adds an extra layer of protection to fill in where other policies leave off. It is a multi-functional product, capable of providing additional liability for a broad range of needs. Typically, policies can be purchased in $1 million increments for a fraction of the cost of other liability policies.
As an added bonus, an umbrella does much more than enhance the liability protection already offered by your home or auto insurance. It can also extend to offer additional coverage, including:
- False arrest
- Landlord liability
- Overseas travel liability
Talk to Your Agent about Adding Umbrella Insurance
Imagine losing the money you had earmarked for a child’s education due to a lawsuit. Think of emptying the investment account you had been planning to supplement your retirement with. We realize that umbrella insurance is not for every driver; but for some, it can mean everything. Typically, we recommend umbrella insurance to Janesville area drivers who have accumulated a significant amount of assets, whether in a savings account or perhaps as equity in a property. We may also recommend it to drivers who know they will have access to an inheritance or a significant stream of future income that could be subject to garnishment after a lawsuit.
If you are not sure about whether umbrella insurance is for you, schedule an appointment to meet with your agent.