Auto Insurance Question in Virginia VA

Reader’s Question:

What does it mean to have an umbrella policy for my auto insurance? I have an auto insurance in Virginia.

Nick

Virginia Beach, VA

Hi Nick.

Umbrella policy in auto insurance provides extra protection against liability when the basic liability coverage of your auto insurance does not suffice. For instance, when you caused accidents on the road and the injured party sues you, you may need considerable amount of money on attorney’s fees, judgments and other legal fees. Your auto insurance liability coverage may be used on these lawsuit fees. However, since these fees are quite expensive, you may need additional financial back-up and the umbrella policy in your auto insurance will provide you the needed extra.

The umbrella policy can be taken from homeowners policy or auto insurance. They are basically used when you meet the limits of your home or auto insurance liability coverage in Virginia. Since the umbrella coverage steps in after the liability coverage of your auto insurance is exhausted, there is certain parameter in the liability coverage of your auto insurance to qualify you for an umbrella policy. The prices differ from companies but generally, you must have 250,000 dollars of liability coverage in your auto insurance and 300,000 dollars of liability in homeowners policy before the insurance company offers you umbrella coverage. For just 150dollars to about 300dollars, you will be entitled to a million umbrella policy. An additional 50dollars may entitle you for additional million.