This Is Why You Need an Umbrella Insurance Policy

Although you carry auto liability insurance above the state minimum requirements, and you have a good amount of coverage for liability on your home, whether you rent or own, it is a wise idea to consider buying a personal umbrella policy.

An umbrella insurance policy provides additional liability coverage when you reach or exceed your liability limits. At one time, financial advisers for the wealthy strongly urged their clients to obtain this coverage. But, today everything is expensive and it is easy to exceed your coverage limits in a single incident.

For example, you are involved in an auto accident. Your car sideswiped a brand new Mercedes Benz. The accident destroyed the car. You pushed the Mercedes into a guardrail and it went over and into a ravine. The driver of the Mercedes, a surgeon sustained a back injury and can no longer perform surgery.

Let us total this incident up:

Total car loss: $60,000. Your coverage: $50,000. You are responsible for $10,000

Ambulance for other driver: $1600

Emergency Room visit, x-rays, and labs: $13,250

9 Day Hospital stay: $17,500

Physician fees: $6,200

Driver’s current lost wages: $15,000

Future lost wages: $4,000,000

Rehabilitation costs current and future: $250,000

Defense attorney: $45,000

_____________________________

Total: $4,352,350.

Less your auto liability coverage $100,000

_________________________

What you are responsible for: $4,252,000

If you had a $5 million umbrella insurance policy that costs just a few hundred dollars each year you would have no liability. The peace of mind that an umbrella insurance policy provides is well worth knowing.

Find out how to protect yourself and your loved ones with umbrella coverage. Call Apollo Insurance Services, serving Chino Hills  and all of California. To speak with a friendly and knowledgeable insurance  consultant, call us at 800.426.1088.

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