If you have car insurance this does not mean that you can’t still be sued personally if you are involved in a car accident. Your insurance company will only cover you up to the amount of insurance coverage you have. Many people are under the impression that they purchase insurance to protect themselves from being sued and losing their home.
After a car accident the individual injured may require medical treatment, rehabilitation and income replacement. If the person is deemed unable to return to work for an extended period of time this amount can grow quickly. In situations like this you may find yourself having a judgment against you in the amount that exceeds your insurance coverage. Even with one million dollar coverage, this may not be enough insurance coverage if someone is left in a wheelchair. When your insurance coverage isn’t enough, you then become personally liable for the balance. This means your home, vehicles, investments and any other assets are now considered to cover the balance of the judgment.
To protect yourself, consider purchasing an ‘umbrella policy’ with homeowners or tenant insurance broker. This will provide you with extra insurance protection. This ‘umbrella insurance policy’ is used when your standard insurance coverage is not enough. The addition of one or two million dollars in insurance coverage with an umbrella policy often can be less than $10 or $20 a month. This ‘umbrella policy’ however may be the difference between keeping your home or losing it. If you don’t have enough insurance coverage, even a car accident lawyer will have difficulty assisting you after the motor vehicle accident has already taken place. Protect yourself and your loved ones, and contact your insurance agent or insurance broker to ask about an umbrella insurance policy.
