Why You May Need an Umbrella PolicyAn umbrella policy is liability insurance that protects you beyond the limits of your ordinary car insurance policy.
Many car insurance companies limit your protection to a maximum of $300,000 per accident - sometimes as high as $500,000.
If you have considerable assets (such as a home), getting an umbrella policy is a very smart decision.
First of all, umbrella policies are relatively inexpensive because they are rarely used. You can get a $1 million umbrella policy for less than $350 per year.
Furthermore, an umbrella policy will cover both your car and home insurance beyond their limits.
The cost of umbrella insurance will be a bit higher if you have a teenager on your policy, since they tend to cause a large percentage of high-cost claims.
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