What is Umbrella Insurance a Car Accident?

When it comes to safeguarding your finances after an at-fault car accident, umbrella insurance can be a game-changer. This type of policy is designed to provide additional liability coverage that goes beyond the limits of your standard auto insurance. Here’s how it can protect you in a variety of scenarios.

Bodily Injury Liability

If you are hurt in a car accident and the other driver does not have enough insurance to cover your losses there are two major options.   First, you may have uninsured coverage with kicks in and pays for your losses.   The other options is an umbrella policy owned by the at fault driver. Umbrella policies generally provide additional liability coverage, but they often exclude coverage for incidents involving illegal activities, such as drunk driving. If you are involved in an accident while under the influence, your umbrella policy may not cover the damages or legal costs. However, the specifics can vary depending on the terms of your policy and the insurance provider.

However an umbrella policy protects only the person hurt by you it does not protect you if the other driver lacks insurance or has inadequate insurance.  To protect yourself and your family, obtain the highest level of underinsured and uninsured coverage that you can afford.

People have asked us whether they can add umbrella coverage after an accident.  The answer is "no".  Even if the policy was offered prior to the accident and even if you could have obtained it at anytime, you can only be covered by a policy that is in force at the time of an accident.  The question is an important one because (especially in California) housing prices are so high that at least on paper, many people have assets (their house) that are worth more money than is protected by a standard car accident policy.  We recommend seriously considering getting an "umbrella" when it is offered.

If you are in a car accident you need the best personal injury attorney to ensure that you find all available assets and insurance to provide you with fair compensation.  The Horowitz personal injury law firm will aggressively represent you to ensure that you obtain a full and fair recovery.