It is almost impossible to predict whether you will ever lose a lawsuit from a car accident or not. Most residents in Birmingham, MI have auto insurance, which offers most of the coverage. However, did you know that minimum auto insurance doesn’t cover you and your car in an accident where you are at fault?
Well, the liability coverage you pay for only covers other parties that you harmed. So, what happens when you cause an accident where you are also injured, and your car gets damaged? Well, depending on your auto coverage, you may or may not receive any help.
At High Favor Insurance, we care about you and your financial securities. That is why we recommend buying umbrella insurance to add extra coverage to what you already have.
How can umbrella insurance protect me during an accident?
Umbrella is extra liability coverage that protects you against lawsuits, property damage, and bodily injury. For instance, if you accidentally caused property damage like damaging someone else’s car, your auto insurance policy may cover the loss. Still, if inadequate, umbrella insurance can come in and offset the rest.
In most cases, liability is never enough to cover for injury and damages caused to another party, and the policyholder ends up digging into their pockets to pay the rest. That is where personal umbrella insurance comes in. Remember, an umbrella policy can only come in when auto insurance is depleted.
What about lawsuits?
The main reason why you need umbrella insurance is to protect yourself from financial insecurities after an expensive lawsuit. For instance, if you caused an accident and someone got critically injured, they may file a lawsuit against you. Similarly, if the accident you caused was as a result of alcohol consumption, the other party may decide to file a case against you. In this case, you will need the help of an umbrella policy to pay legal fees.
At High Favor Insurance, we would like to help you get an additional coverage. Contact or visit us at our Birmingham, MI offices today!