Car Insurance Question

[Ranger111]

Peeps, just one thing! A million umbrella is better than nothing, but nowadays, it is next to nothing. DOES NOT cost that much to up it to 2 million. Yeah, I hear you, but better safe...

 

[bearpele]

Great post - just revisited our car insurance to what we have coverage for.

 

[here757]

Y'all might wanna call. Double check. It's huge gap

 

[cariann77]

Reading this, I should probably up our coverage, but I live in Michigan. Our auto insurance prices are out of control. I can imagine what we would pay if we added an umbrella. We are already at $488/month.

 

[here757]

Um a million dollar umbrella policy doesn't start at a million dollars it covers upto a million dollars. So the 700,000 difference in you example would be covered. I have to wonder how many people you misadvised while you were an insurance agent

https://www.hometowninsurance.com/umbrella-insurance/umbrella-insurancefrequently-asked-questions/

About halfway down the page.. Under the heading
What do I need to be careful about when purchasing umbrella insurance?

 

[here757]

Reading this, I should probably up our coverage, but I live in Michigan. Our auto insurance prices are out of control. I can imagine what we would pay if we added an umbrella. We are already at $488/month.

Estimates are around 200 a year for 1 million.

 

[cariann77]

Estimates are around 200 a year for 1 million.

Thanks, I will look into it. We're currently shopping rates.

 

[here757]

Thanks, I will look into it. We're currently shopping rates.

Honestly most who ask about umbrella policies don't need them. Good luck

 

[starry_solo]

https://www.hometowninsurance.com/umbrella-insurance/umbrella-insurancefrequently-asked-questions/

About halfway down the page.. Under the heading
What do I need to be careful about when purchasing umbrella insurance?

This part:
What do I need to be careful about when purchasing umbrella insurance?

When you purchase an Umbrella policy, your Umbrella insurance company will require you to maintain specific minimum limits of liability coverage on all of your underlying policies, i.e. your auto insurance, homeowners insurance, boat insurance etc. It will be your responsibility to maintain these underlying required limits. In the event of a liability claim covered by your primary auto, home, or other policy, your Umbrella policy will respond after the primary policy limits are used up. If you fail to maintain the minimum required limits on your primary policies, you will end up with a coverage gap.

For example, assume that your Umbrella insurer requires that you maintain at least $500,000 of liability coverage on your homeowners policy, but you only purchase $300,000 of liability coverage on your homeowners policy. In the event of a covered homeowners liability claim, your homeowners insurer would pay the first $300,000 (your policy limit), but your Umbrella insurer would only begin paying after the first $500,000. Your Umbrella policy would respond only after the first $500,000 whether that comes from your homeowners policy, you, or a combination of both.

===

I think most of us understand that you have to have the required amount of liability coverage to properly get coverage under the umbrella policy.

 

[here757]

This part:
What do I need to be careful about when purchasing umbrella insurance?

When you purchase an Umbrella policy, your Umbrella insurance company will require you to maintain specific minimum limits of liability coverage on all of your underlying policies, i.e. your auto insurance, homeowners insurance, boat insurance etc. It will be your responsibility to maintain these underlying required limits. In the event of a liability claim covered by your primary auto, home, or other policy, your Umbrella policy will respond after the primary policy limits are used up. If you fail to maintain the minimum required limits on your primary policies, you will end up with a coverage gap.

For example, assume that your Umbrella insurer requires that you maintain at least $500,000 of liability coverage on your homeowners policy, but you only purchase $300,000 of liability coverage on your homeowners policy. In the event of a covered homeowners liability claim, your homeowners insurer would pay the first $300,000 (your policy limit), but your Umbrella insurer would only begin paying after the first $500,000. Your Umbrella policy would respond only after the first $500,000 whether that comes from your homeowners policy, you, or a combination of both.

===

I think most of us understand that you have to have the required amount of liability coverage to properly get coverage under the umbrella policy.

And that's what I stated in my original statement..the company who put out this article side their umbrella started at 300,000. The company I worked for started at 1mill. Umbrella covered 1 mill to 2 mill
Someone told me I didn't know what I was talking about.. A lot of folks don't check their policies. And have no idea of the gap.

 

[Gracie09]

And that's what I stated in my original statement..the company who put out this article side their umbrella started at 300,000. The company I worked for started at 1mill. Umbrella covered 1 mill to 2 mill
Someone told me I didn't know what I was talking about.. A lot of folks don't check their policies. And have no idea of the gap.

You said that the umbrella only kicks in after 1 million dollars. That is not true in either example. The example you gave is that if you have 300k in car insurance you are liable for 700k before the umbrella kicks in. That is simply untrue. If the umbrella requires 500k before it kicks in the consumer would be liable for 200k, the amt to reach 500k, not 700k, the amt to reach a million. And as an agent wouldn't you disclose that to your client? I know ours went over our assets and our plans and gave us several options to provide coverage at various levels
.
The level of underlying insurance you need would depend on the specific policy

 

[scrapquitler]

Reading this, I should probably up our coverage, but I live in Michigan. Our auto insurance prices are out of control. I can imagine what we would pay if we added an umbrella. We are already at $488/month.

you might be pleasantly surprised. The umbrella potion of our policy only adds about $240 a year to our total cost.