IX. Umbrella Coverages:
Umbrella coverage merely extends your bodily injury liability coverage, and your uninsured/underinsured motorist coverage beyond the limits of your regular automobile insurance policy. The coverage amount is over and above the regular policy limits, and these coverages are normally issued in one million dollar increments. Though umbrella policies are sometimes offered by the same carrier as your regular automobile insurance carrier, these are separate policies. All umbrella carriers have underlying liability insurance coverage limits that you must carry to be eligible for umbrella coverage. Most usually require a minimum of $250,000.00 to $300,000.00 in underlying coverages. The cost of this extra coverage is much less than the cost per dollar for your regular insurance policy.
You should shop around for your vehicle coverage every year, so that you can be sure you are getting the best deal available, as rates do change frequently for most policies. However, be aware that some companies offer increasing percentage discounts for folks who keep their policies with that company over many years or have multiple policies (homeowners or life) with the same company. However, a policy premium of $1,000.00 per year with a 10% discount, is not as good a value (all other things being equal) as a policy with an $850.00 premium for the upcoming year.
