Vehicle insurance plans vary from state to state in terms of coverage, prices, liability, and more. It’s important to be aware of the laws in your state and how they might affect you in an auto accident or emergency situation. In Michigan, for example, no-fault auto insurance updates took effect in July 2020. How did these laws shift policyholder protection? Two of the main changes included:
- At-fault drivers are now responsible for and can be sued for excess medical expenses. These were previously covered under Michigan’s unlimited personal injury protection (PIP) option, but they are no longer covered if the injured party chose any amount of PIP protection other than unlimited on their auto insurance policy.
- In the case of an accident, liability risk increases significantly for the at-fault driver. In addition to the lifetime medical costs of those injured in an accident caused by the driver, the driver may also be responsible for pain and suffering compensation.
Luckily, there is an affordable and comprehensive way for Michigan drivers—and those across the U.S.—to protect themselves on the road: an umbrella policy. You may be wondering how umbrella insurance covers gaps in auto plans or how much this policy would cost.
Explore the Benefits of Enrolling in Umbrella Protection Today
Umbrella Plans Reduce Liability Risk for Drivers
Since policyholders may be liable for damages in a vehicle accident, an umbrella policy can come to the rescue. It would cover the difference between the damages caused in an at-fault accident and the liability limits on that driver’s auto policy. With coverage, you’re ensured:
- Protection for the at-fault driver’s personal assets. Without an umbrella plan, personal assets could be used to pay for the liability of the accident (e.g., medical expenses, pain, and suffering).
- Protection for your future. If your policy limits are exhausted, the at-fault party would still be expected to pay what’s owed after an accident. That can include dipping into your family’s future income if your current assets are insufficient.
They’re Affordable Considering the High Coverage They Offer
Umbrella plan coverage ranges from $1 million to $5 million at a low cost to customers. This means it can be one of the smartest and most affordable safeguards you have, protecting both you and your assets in the event of an accident.
They Can Extend Liability Coverage to Your Home, Boat, and Recreational Vehicles
Umbrella policies don’t stop at covering gaps in auto plans. They can also cover several other areas, such as your home, boat, and recreational vehicles. But how does that work?
At their core, umbrella policies provide coverage beyond underlying limits if you’re found liable in a situation. For example, if someone is seriously injured on your property and your homeowner’s policy liability limits aren’t enough to cover medical costs, an umbrella policy would step in to cover the gap. If a similar situation occurred on your boat or recreational vehicle, the same would apply.
They Provide Critical Protection in Michigan and Beyond
No matter where you live, having extra coverage and peace of mind is invaluable. Take a look at the many ways umbrella insurance covers gaps in auto and other plans. Then, speak to a local, independent agent about obtaining coverage today.
