Car insurance varies from state to state in terms of coverage, prices, liability and more. It is important to be aware of the laws in your state and how they can affect you in a car accident or emergency. In Michigan, for example, flawless car insurance updates took effect in July 2020. How did these laws change policyholders’ coverage? Two of the most important policy changes included:
- Incorrect drivers are now responsible for, and can be sued for, excess healthcare costs. These were previously covered under Michigan’s option for unlimited personal injury protection (PIP), but are no longer covered if an injured person chose any other amount of PIP coverage than unlimited on their car insurance.
- In the event of an accident, the risk of liability increases significantly for the guilty driver. In addition to the lifetime medical costs for the injured in a collision caused by the driver, the driver may also be liable to receive pain and suffering compensation.
Fortunately, there is an affordable, comprehensive way for Michigan drivers and those across the United States to protect themselves on the roads … with an umbrella policy. You may be wondering how umbrella insurance covers gaps in car insurance. Or how much this policy would cost.
Explore the many benefits of signing up for umbrella protection today.
Umbrella policies reduce the risk of liability for drivers.
As policyholders may be liable for damages during a car accident, an umbrella policy may come to the rescue. It would cover the difference between the damage caused by an accident and the limits of liability for that driver̵7;s car policy. With coverage, you ensure:
- Protection of the driver’s personal assets. Without an umbrella policy, personal assets could otherwise be used to pay for accident liability (such as medical expenses, pain and suffering).
- Protection for your future. If your insurance limits were exhausted, the defaulting party would still be expected to pay what is owed after an accident. This may include dipping into your family’s future income if your current assets were insufficient.
They are low considering the high coverage they offer.
Umbrella insurance ranges from $ 1 million to $ 5 million at a low cost to consumers. This means that it can be one of the smartest and most affordable safety nets you have – which protects both you and your assets in the event of an accident.
They can extend the liability protection to your home, your boat and your recreational vehicle.
Umbrella policies do not stop at covering gaps in car insurance. In fact, they can extend to many other areas such as your home, boat and recreational vehicle. But how does it work?
Basically, umbrella policies provide coverage beyond underlying boundaries should you become responsible in a situation. Let’s say that someone was seriously injured on your property and that the limits of your homeowner’s policy liability were not sufficient to cover medical expenses. An umbrella policy would come into force to cover the gap in coverage. If a similar situation occurred on your boat or recreational vehicle, the same result would apply.
They provide critical coverage in Michigan and beyond.
No matter where you live, it is invaluable to have extra coverage and peace of mind. Look at the many ways umbrella insurance covers gaps in car insurance and other insurance policies. Then talk to a local, independent agent about getting coverage today.