Automobile insurance is written out in a way that protects you and others from the after-effects of an accident. Many people choose to carry the state-required minimum amount of auto insurance to be able to drive legally on the roads. It may be much cheaper at the time to carry the state minimum amount of auto insurance, but it can be incredibly expensive if the cost of the resulting damage exceeds the cap your insurance policy offers. Umbrella insurance policies and excess UM/UIM coverage will help you regain the financial security you are looking for.
Traditional Auto Insurance Coverage
Many people use traditional auto insurance to be able to replace their vehicle or make repairs after an auto accident. They rarely count on the other party experiencing excessive property damage or bodily injury claims. If their vehicle is paid off, most people will opt for the bare minimum coverage when it comes to meeting the state requirements for insurance coverage. This can leave them holding the bag for any expenses that exceed the limits of their coverage. Unfortunately, they will have to come up with the additional funds in whatever way they can.
Umbrella coverage goes above and beyond what your traditional automobile insurance offers. While your insurance has a cap that limits how much a claimant can receive, purchasing an umbrella policy will take up the rest of the slack, so you don’t have to come up with any excess money that your traditional policy doesn’t cover. State minimum requirements can be as little as $25,000. Umbrella coverage can increase the amount you are liable for if an accident does occur. Depending on the amount you choose, it can range from $100,000 to $500,000 or more.
Excess Uninsured/Underinsured Motorist Coverage
Even though the state requires motorists to carry a specific amount of auto insurance to be considered legal on the roads, many people let their policies lapse or avoid purchasing auto insurance altogether. As uninsured or underinsured motorists, any accidents they are involved in can be quite costly even though they may not have the financial resources to pay for them. This is why having the excess uninsured/underinsured motorist coverage is so important. This type of policy covers you for almost any type of bodily injury or property damage that is caused by a motorist who is driving without any insurance coverage or with inadequate insurance coverage.
Umbrella coverage and excess uninsured/underinsured motorist coverage can spare you the financial frustration that is associated with being involved in an accident. Umbrella insurance is the best way to ensure that you have the coverage you need even if you have a very low amount of insurance.
For all your auto insurance needs, contact the experts at the Scavone Insurance Center in White Plains, New York, today. Our agents have the expertise to ensure that you have the right amount of auto insurance coverage in place to protect you, your family, and your business from financial loss.