You don't have to be a multi-millionaire to be sued like one! For most of us, it's the nightmare scenario. After a fatal auto accident, you're sued and found liable for $2 million. Horrifying enough on the surface, but if your auto liability policy only covers $250,000, you're personally on the hook for a staggering $1.75 million.
The simple fact is that in today's lawsuit-happy culture, the nightmare scenario is a real possibility if you're ever found at fault in a major auto accident or even sued for a serious mishap on your property.
That's why a personal umbrella policy (often called a PUP) makes sense for so many drivers and homeowners. It kicks in when your "regular insurance" hits its coverage ceiling. A PUP makes sense for many customers, but it's up to you to decide whether or not you need a personal umbrella policy
A personal umbrella policy is called an "umbrella" policy because it provides liability coverage over and above your standard auto insurance or homeowners insurance. It offers protection against large and potentially devastating liability claims or judgments. In short, a personal umbrella policy kicks in right where your other liability coverage stops. Given the example above, and based on the level of PUP coverage you choose, the umbrella policy would typically pay the remaining $1.75 million that is above your auto insurance liability coverage limit.
Personal umbrella policies are typically available in increments of $1 million all the way up to $5 million. Here's a quick tip, though. Protecting your assets reaches beyond just your banking or investment accounts. It could include your home, valuables, earning capacity, etc. When considering a PUP, think beyond your assets. Even if you're considering protection for $1 million worth of assets, what happens if you're found liable in a $2 million judgment?
A PUP may sound expensive, but the good news is that this level of protection is more affordable than many people think. At a cost of about $1 a day (varies by state), a personal umbrella policy works with a customer's existing liability coverages (tied initially to auto and property policies) to provide them with additional protection.
An Allstate agent can help to further answer questions you may have about a personal umbrella policy, and work with you to help determine the coverage levels that might be best based on your individual auto and asset situations.
First, if you're already an Allstate customer, you may be eligible for significant discounts.
In addition to that, and if you're shopping for auto insurance, consider these aspects that the Allstate PUP includes:
- If you're sued over an incident covered by your PUP, we'll retain and pay for your attorney.
- You're protected no matter where you are - even when you're out of the country.
- You're covered for any wages lost due to a court appearance, up to the limits specified in your PUP policy.