The risk of distracted driving, especially texting while driving, is growing, leading to higher accident rates and larger financial liabilities for drivers. Courts are awarding substantial settlements in distracted driving lawsuits, which can exceed the limits of traditional auto liability insurance. This is where umbrella insurance becomes essential for protecting your assets. But what is umbrella insurance, and why should auto owners consider it as an essential safety net?
Understanding Umbrella Insurance and Its Role in Auto Liability
Umbrella insurance provides additional liability coverage beyond the limits of your standard auto or home insurance policies. It’s designed to protect your assets when faced with large claims or lawsuits. For example, if you’re at fault in an accident and the medical bills exceed the limits of your auto insurance, an umbrella policy covers the costs. This extra protection is crucial as courts continue to award increasingly high settlements for distracted driving accidents.
Helpful Facts
- Umbrella insurance adds extra liability protection beyond standard policies, covering large claims and lawsuits.
- Distracted driving leads to rising accident rates, with courts awarding higher settlements that exceed auto policy limits.
- It covers legal fees and damages above the limits of your regular insurance, protecting your assets.
- Auto owners, especially those with high-risk factors like teen drivers, should consider umbrella insurance for full financial security.
- Growing court settlements in distracted driving cases make umbrella insurance essential for comprehensive coverage.
With distracted driving being a leading cause of accidents, having only the basic coverage might leave your assets vulnerable. More than 3,500 lives were lost in 2021 due to distracted driving and lawsuits are leading to substantial court-awarded settlements that can wipe out savings or investments. An umbrella policy acts as a financial buffer, ensuring that your assets remain protected.
Why Distracted Driving Accidents are Increasing Liability Risks
Distracted driving, especially texting while driving, has become a pervasive issue. As reported Many states have implemented strict distracted driving laws to reduce accidents caused by phone use. Yet, despite these efforts, distracted driving remains a top contributor to road accidents.
Courts are cracking down on distracted driving offenses, often awarding large settlements to accident victims. This trend reflects the increased awareness and seriousness of distracted driving incidents. If you are involved in a texting and driving lawsuit, you may be held responsible for medical bills, property damage, and even punitive damages. With court settlements rising, relying solely on basic insurance coverage could leave you exposed to significant financial losses. Umbrella insurance steps in to cover these gaps, offering high-limit insurance coverage that extends beyond your auto policy limits.
How Umbrella Insurance Shields You from Large Claims
A key benefit of personal umbrella policies is their protection against various risks, including distracted driving. If you’re sued for a distracted driving accident, auto insurance may cover part of the damages. However, when the claim exceeds your policy’s limit, problems arise. Severe injury or property damage can leave your auto policy falling short. This could make your personal assets, such as your home or investments, vulnerable to seizure.
For instance, imagine being involved in a serious car accident caused by texting. The damages surpass your auto insurance’s liability limit, and you face a large claims lawsuit. If your assets, including future wages, are at risk, an umbrella policy can save you from financial devastation. This comprehensive liability insurance covers legal fees, medical expenses, and damages that exceed your standard policy.
Most umbrella policies start at $1 million in coverage, which might seem like a lot, but given today’s high court settlements, it’s often the minimum needed. In some cases, umbrella policies can go up to $100 million. It’s crucial to work with a professional to determine the right coverage for your needs.
Who Should Consider Umbrella Insurance?
If you own a car, rental property, or have significant assets, umbrella insurance is essential. With states enforcing distracted driving laws, lawsuits for phone-related accidents are increasing. This risk grows if you have a teen driver or frequently drive in high-traffic areas.
Drivers in high-risk categories—such as those with teenage drivers, rental property owners, or individuals with high net worth—should consider a higher excess liability coverage to fully protect their assets. In New York, for instance, distracted driving is a significant issue, and violators can face heavy fines and legal repercussions. The right umbrella policy ensures that even in the worst-case scenario, your finances remain secure.
Protecting Your Assets in an Increasingly Litigious World
Given the rise in distracted driving accidents and large legal claims, the need for accident liability insurance beyond your basic auto policy is more critical than ever. Courts are consistently awarding larger settlements, and distracted driving cases are among the most common. Having a personal umbrella policy not only offers peace of mind but also serves as a crucial part of a comprehensive financial protection strategy.
Discover Essential Insurance Insights with Us!
As an auto owner, protecting your assets from lawsuits—whether from texting and driving accidents or other liabilities—requires a proactive approach. Umbrella insurance is the tool that ensures you’re safeguarded from unexpected financial loss due to large claims, giving you the coverage necessary to navigate today’s litigious landscape.
You may have been recommended to us by one of our many satisfied customers, or you may have searched online for “umbrella insurance near me.” However you found us, we’re happy to welcome you. To discuss your needs and and how we can help you, please contact Pierre Bartalotta, Director of Personal Insurance, email: Pierre@coughlinis.com tel: (914) 833-4999 or reach out for a free insurance quote today!
Helpful Facts
- Umbrella insurance adds extra liability protection beyond standard policies, covering large claims and lawsuits.
- Distracted driving leads to rising accident rates, with courts awarding higher settlements that exceed auto policy limits.
- It covers legal fees and damages above the limits of your regular insurance, protecting your assets.
- Auto owners, especially those with high-risk factors like teen drivers, should consider umbrella insurance for full financial security.
- Growing court settlements in distracted driving cases make umbrella insurance essential for comprehensive coverage.