If we are at fault in a car accident, we have car insurance to pay for medical expenses and responsibilities. We have home insurance to protect homes and personal property from damage. Housing and renter insurance also includes liability insurance. But what happens if you unfortunately cause a major car accident? What if the medical expenses exceed your car insurance coverage? What if the person involved in the accident sues you more than your home insurance liability insurance?
This is where the umbrella insurance policy comes into play. For less than $200 a year, you can get an additional $1,000,000 in insurance. If you have $500,000 in car insurance, you can get up to $1,500,000. Depending on the number of assets you have, this may be enough. This is cheap because your home or car coverage needs to be used up first.
If your decision is beyond your coverage, you are responsible for the difference. In Colorado, these are the assets exposed at the time of the judgment: real estate, cars, current assets, future wages and personal property. As the percentage of judgments over $1,000,000 continues to increase, it is wise to call your insurance agent today and ask for a umbrella policy.
In the past, only the umbrella policy was considered for wealthy customers. But this is no longer the case. Medical expenses after the accident have been rising. If your Colorado minimum car liability insurance is $25,000 per person, can you really afford any major medical expenses? of course not! If you are at fault due to an accident and someone's expenses exceed your coverage, you are responsible for the difference. Can any of us get $20,000 to pay? What if you decide from the court that your total number of judgments exceeds six? Who will pay the bill. You may think that since you didn't make a lot of money, you won't be sued. But in Colorado, up to 25% of revenue can be used to pay the amount due. Can you give up 25% of your salary, maybe you can give up for years to come? Protect yourself and protect your family. Get the umbrella policy for the coverage you need.