Insurance Phoenix – The Amazing Umbrella Policy

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Umbrella insurance protection is usually one of the last insurance products a consumer buys. I understand the reasoning. A family budget is stretched thin and we often feel "insurance poor".

But what happens if you or a family member (such as a teen driver) is involved in an auto crash that injures others? Do you have high bodiliy injury limits under your auto insurance policy? What if the other person is disabled or killed? If you calculate a person's worth on that basis, I bet 99% of insurance buying consumers have too little protection under their auto policy.

An umbrella policy goes hand in hand with an auto insurance policy and home insurance policy and costs about $ 350 or less annually for $ 1,000,000 protection. This premium varies bases on other factors (if you own rental properties, have recreational vehicles, teen driver's).

If you have too little bodily injury protection under your auto policy, then what? Do you sell your home? Have 25% of your wages garnished for the next 15 years? Cash out a 401k, IRA or something else?

When you buy an umbrella insurance policy keep in mind that you are protecting your assets and income.

Be especially careful when you have teen drivers on your auto policy. Teenagers have more accidents than all the other age groups combined. Consider increasing your deductibles on your auto insurance policy and home insurance policy.

Consider if you have an auto insurance policy or home insurance policy with a $ 500 deductible and you have a $ 750 claim. Are you going to file a claim for the $ 250 difference or pay the entire $ 750 out of pocket to keep the claim off your record? Many people will pay it out of pocket. If this is you, consider increasing your deductibles.



Source by Gary Brown