Umbrella Insurance Basics

In July of 2020, Michigan’s auto laws changed. Now, drivers who are deemed responsible for causing a collision that results in injury can be sued for damages over their PIP limits. That means drivers in West Bloomfield, MI are now at increased financial risk every time they get behind the wheel, and that’s where umbrella policies can help. 

What is an Umbrella Policy? 

Simply put, it is a protection against financial liability if a significant accident leaves you responsible for someone else’s medical payments. Medical expenses in serious accidents can add up quickly, and even if you carry PIP, that will cover those expenses only up to your policy limit. Some still have unlimited PIP, but for those who do not, an umbrella policy is a way to cover that risk. 

What Kind of Coverage is Available? 

In Michigan, you can get an affordable umbrella policy with a coverage of one million, five million, or even as much as ten million for a surprisingly low rate. This stacks on top of your existing liability limits to ensure that even a significant accident will not harm your financial well-being. Accidents happen; it shouldn’t ruin you. 

What Assets are Protected?

Since damages from a significant injury can be expensive and ongoing, it’s not just your bank account that’s at risk. An umbrella policy protects you from the loss of your home, cars, investments, financial accounts, and any future income you might make. 

What Kind of Injury Claims am I Liable For?

Not only will you be potentially responsible for the initial medical bills that someone you’ve injured incurs, but you will also be on the hook for wage loss and pain and suffering. An umbrella policy is low-cost protection for you and your family. 

When you are ready to discuss what kind of umbrella policy works best for you, call or stop by Agency Advantage Insurance.