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The Importance Of Having Automobile, Boat, Motorcycle, Home, And Umbrella Insurance Policies

You may see insurance as a bothersome requirement for owning a car or a home. You may see it as a waste of money and not believe insurance companies are there to help. However, when things go wrong, your automobile, home, and umbrella insurance can be crucial in helping you out of an incredible amount of trouble. Here are a few examples regarding why you should have insurance with a quality insurance carrier recommended by a reputable insurance broker.

1. You are in an accident and injure another person

Assume that you are in an accident and you injure another person. If you don’t have insurance or if you have low limits, you may be at risk of having an adverse verdict against you which can cause numerous issues. Without insurance, you are personally responsible for the other side’s injuries and damages, if they can prove you are liable. Therefore, it would be a smart decision to have a high limit primary automobile policy ($250,000 or more) and an umbrella policy (usually $1,000,000 or more) to help protect your assets and help you sleep at night. Having these policies would protect you against liability (provided it is covered under the policy) up to the total limit of the policies ($1,250,000). This means, if there is coverage, your insurance policy will cover you up to that amount. The insurance carrier would also provide you an attorney and pay for the attorney to help protect your interests.

Also, please note that, under California law, if you don’t have an automobile insurance policy and you are in a car accident, you may be limited in your recovery. This is another reason to have proper insurance.

2. You are in an accident and another person injures you

Let’s say you are driving on the freeway and another person crashes into your car injuring you. Assume your injuries are significant (broken bones, concussion, scarring, spinal injury, traumatic brain injury, concussion, quadriplegia, or paraplegia). Now assume that the other person has a minor $15,000 insurance policy and no other insurance. If liability is clear, the other driver’s insurance carrier is likely going to pay you the $15,000 and close their file. If you accept that money, you will have to sign a release and will not have any other recourse against the person who injured you. We know that $15,000 is not going to cover your medical bills, wage loss, or other damages. What will you do then? This is where your own insurance policy comes in.

If you have purchased an insurance policy with higher limits and an umbrella policy, you may be able to turn to your own insurance company to help cover more of the costs you have incurred. Assume you have a $250,000 primary automobile insurance policy and a $1,000,000 umbrella (or excess) insurance policy. If you have purchased these policies with the uninsured / underinsured policy provision, you can collect the $15,000 from the other driver and then turn to your own insurance policy to recover the additional $1,250,000. Without your own insurance, you would be limited in your recovery to the other driver’s minor limits and possibly your own primary policy. However, the umbrella would provide an additional $1,000,000 (or more if you purchase a larger policy) to cover the additional damages. Therefore, it would be a smart decision to purchase a higher limit primary policy with an umbrella policy above it to help protect your interests.

3. Your dog bites another person

Under California law, a dog biting a person is virtually automatic liability for the dog owner. We all love our dogs and train them to behave. It is inconceivable that our dog bites another person. However, it can happen, and your home insurance policy would likely cover the injuries and damages of the other person.

With all this, it is important to consult an insurance broker to purchase the proper insurance. It is also important to consult your attorney if you are injured. If you cause an accident, contact your insurance broker and insurance company immediately.

Our skilled personal injury trial lawyers and negotiators are here to help solve our clients’ problems and help them thrive. If you are in need of a personal injury attorney or trial attorney, don’t hesitate to call us at (925) 433-7300 or email us. With primary offices in Walnut Creek, our attorneys represent clients in the San Francisco Bay Area, Los Angeles and throughout California.