Will umbrella insurance help if I am in a bad car accident?

It’s important for drivers in Niles, IL to carry auto insurance. It doesn’t just help you comply with the law; it protects you from financial liability if you are ever found at fault for an accident. When you don’t have insurance, you have to pay out of your own pocket for any damages that occur.

Those damages can reach astronomical amounts. If you only purchased minimum coverage when you got your auto insurance at Bob Korvas Agency Inc., you are only covered for up to $15,000 in property damage and up to $40,000 for bodily injury per accident. Those sound like large numbers until you realize most new cars cost well over $15,000, and even a short hospital stay can cost well over $40,000 just for one person.

Once your insurance policy has paid out its maximum amounts, you will be responsible for the balance. That could result in financial hardship or even bankruptcy as you try to work out a payment plan for all of the damages and injuries that resulted from the accident.

How Does an Umbrella Policy Help?

If you had an umbrella policy, it would kick in as soon as your regular policy maxed out. After the limits are reached, the umbrella policy takes over and pays for the rest of the settlement or judgment. 

Normally umbrella policies start out at a million dollars worth of coverage, so you are unlikely to get to your limits with an umbrella policy. Because they are in effect a backup policy, umbrella policies are also surprisingly affordable.

If you are in Niles, IL and want to discuss how an umbrella policy could give you the extra protection you need, please feel free to call Bob Korvas Agency Inc. today and discuss your options.