Umbrella Insurance in 2024 (Coverage Explained)
Umbrella insurance averages $18 per month and gives you $1 million or more in extra liability coverage. Umbrella coverage helps protect your savings, covers legal fees, and fills in when your regular insurance isn’t enough. Compare quotes to find the right umbrella policy for your budget and needs.
Free Car Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Zach Fagiano
Licensed Insurance Broker
Zach Fagiano has been in the insurance industry for over 10 years, specializing in property and casualty and risk management consulting. He started out specializing in small businesses and moved up to large commercial real estate risks. During that time, he acquired property & casualty, life & health, and surplus lines brokers licenses. He’s now the Senior Vice President overseeing globa...
Licensed Insurance Broker
UPDATED: Dec 12, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Dec 12, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
Umbrella insurance provides extra protection beyond your regular policies. It helps cover costs like legal fees, accidents, or lawsuits that your car or home insurance might not fully pay for. For around $18 a month, you can get $1 million or more in coverage.
This type of insurance is especially useful if you have valuable assets like a home, savings, or rental properties. It also covers things that other policies might not, such as slander or libel. To get the best deal, you should know how to compare auto insurance quotes from different companies.
This ensures you’re getting the right coverage at the best price without paying more than you need. Also, umbrella insurance is a kind of liability insurance policy that covers both the assets of the insured party and the future income of parties on the primary policies.
Explore your auto insurance options by entering your ZIP code into our free comparison tool today.
- Umbrella insurance adds extra liability coverage beyond regular policies
- It covers risks like slander and legal fees not included in standard insurance
- Compare umbrella insurance quotes to find the best option for your needs
How Umbrella Policies Work
So, for example, an umbrella insurance policy only provides liability coverage that is above and beyond the initial coverage afforded by other policies. Umbrella insurance policies are typically sold in $1 million coverage increments.
If there were to be a $1 million umbrella insurance policy covering both an auto insurance policy and a homeowner’s policy, it would be added to the liability coverage limits of each policy.
Umbrella insurance provides additional liability coverage that protects your assets and income when your regular insurance limits are exceeded.Karen Condor Insurance and Finance Writer
If the auto insurance policy has a liability insurance limit of $250,000, then the total coverage is $1.25 million (for liability only). If the home insurance policy has a limit of $500,000, then the total coverage is $1.5 million in that respect, too.
Umbrella insurance helps you add extra liability coverage on top of what you already have with other policies. To find the best deal, try an umbrella insurance quote comparison to check out different options. This will help you understand the meaning of an umbrella policy and how it can give you more coverage where you need it.
Compare over 200 auto insurance companies at once!
Secured with SHA-256 Encryption
What an Umbrella Policy Covers
An umbrella policy can help extend your coverage for things like boats, RVs, caravans, and other policies that protect you from liability. For example, an umbrella insurance policy in the U.S. won’t add extra coverage to health insurance since health insurance doesn’t cover liability.
It can also cover things not included in your other policies, like libel, slander, invasion of privacy, or false arrest. Just remember, the total liability auto insurance is limited to the value of the umbrella liability policy and doesn’t include other policy limits.
This is where umbrella liability insurance can make a difference in extra coverage when needed.
Read more: Should you get an umbrella insurance policy if you already have auto insurance?
Key Benefits of Umbrella Insurance
Umbrella insurance provides extra protection for situations where your regular insurance might not be enough. For example, having the best umbrella insurance can help you cover costs if you’re sued for slander or a serious accident that exceeds your car or homeowner’s insurance limits.
Umbrella Insurance Monthly Rates by Provider| Company | Rates |
|---|---|
 | $30 |
 | $50 |
 | $35 |
 | $18 |
 | $40 |
 | $25 |
 | $28 |
 | $25 |
 | $40 |
 | $30 |
Umbrella policies add extra coverage beyond your regular insurance, giving you peace of mind knowing that you have more protection in place.
Understanding the meaning of umbrella insurance in Texas is important, as it can vary depending on the state. In Texas, an umbrella policy can help cover expenses from legal fees or lawsuits that your other insurance policies don’t handle.
Having a solid umbrella liability policy in place ensures you won’t be left financially vulnerable in case something unexpected happens, whether it’s at home or while you’re out on the road.
Read more: Does my car insurance cover damage caused by a natural disaster if I only have liability coverage?
How Umbrella Insurance Protects You
Umbrella insurance provides extra protection when your regular insurance doesn’t cover everything. The definition of umbrella insurance is straightforward – it kicks in after your existing policies, like car or home insurance, reach their limits.
Umbrella Auto Insurance Monthly Rates by Provider & Driving Record| Insurance Company | Clean Record | One Ticket | One Accident | One DUI |
|---|---|---|---|---|
| $318 | $374 | $416 | $522 |
 | $224 | $252 | $310 | $361 |
| $288 | $340 | $377 | $393 |
| $179 | $220 | $266 | $406 |
| $398 | $475 | $517 | $634 |
| $229 | $259 | $283 | $379 |
| $283 | $334 | $398 | $331 |
| $235 | $266 | $283 | $303 |
| $287 | $355 | $357 | $478 |
 | $161 | $183 | $210 | $292 |
For instance, if you’re in an accident and your car insurance only covers part of the damages, your umbrella insurance policies can help pay the rest, including legal fees or any settlement costs.
With an umbrella insurance policy, you’re not just depending on the coverage from your regular policies. It offers extra security in case something unexpected happens, like a lawsuit or a major liability claim.
Umbrella insurance policies give you peace of mind, knowing that you’re financially protected from big expenses that could otherwise hurt you.
Understanding how auto insurance works can help you learn how umbrella insurance can enhance your existing policies and protect you from unexpected financial challenges.
Compare over 200 auto insurance companies at once!
Secured with SHA-256 Encryption
Common Exclusions in Umbrella Insurance
Common exclusions in umbrella insurance are important to understand. For example, it doesn’t cover damage to your own property, like if your car or house gets damaged. That’s something your regular insurance would handle, not the umbrella insurance policy.
Also, if you intentionally cause harm or break the law, the umbrella insurance policies won’t cover you. It’s meant for accidents, not for things you do on purpose.
Umbrella insurance is often overlooked
It’s one of the cheapest insurances out there but can provide significant coverage
Especially for high-earners, business owners, real estate investors
It can save a lot of headache down the road for minimal cost pic.twitter.com/qRMWUKcYze
— Thomas Kopelman 💵 (@TKopelman) October 18, 2024
Moreover, umbrella coverage doesn’t cover certain risky activities like skydiving or running a business from home. Such exclusions should be known. By checking your umbrella insurance policy coverage, you can ensure you’re properly covered for the right situations and avoid surprises if you ever need to use it.
Discover our guide, “Should you get an umbrella insurance policy if you already have auto insurance?” to explore how an umbrella policy can provide extra coverage beyond your auto insurance and help protect you from unexpected financial risks.
Understanding the Scope of Umbrella Insurance Coverage
Umbrella insurance policy coverage gives you extra protection beyond your regular insurance. For instance, in case of an auto accident where the costs are not fully covered by your car insurance, the umbrella coverage will cover the remaining amount.
This is particularly useful when your regular insurance limits have been reached, thus giving you extra financial security. In addition to protecting against accidents, umbrella insurance policy coverage helps with things that regular insurance doesn’t cover, such as personal injury or defamation, like slander and libel.
Keep in mind that umbrella coverage is limited by the amount of coverage you choose, so it’s important to understand how much protection you need to avoid major financial setbacks.
Read more: Auto Insurance Requirements by State
Find your cheapest auto insurance quotes by entering your ZIP code into our free comparison tool.
Frequently Asked Questions
What is an umbrella insurance policy?
It’s extra liability insurance that covers your assets and future income.
Can umbrella insurance extend coverage to other insurance types?
Yes, it can cover other policies with liability coverage, like boats and RVs. Enter your ZIP code into our free quote tool to find the best auto insurance providers for your needs and budget.
How can I find the right umbrella insurance cost?
Shop online for quotes and compare using free tools.
What does umbrella insurance cover?
Umbrella insurance provides additional liability coverage that goes beyond the limits of your home, auto, or other standard insurance policies. It typically covers bodily injury, property damage, and legal fees if you’re sued and may also extend to incidents like libel or slander. For example, if someone sues you after an accident and your auto insurance limit is exhausted, umbrella insurance steps in to cover the remaining costs.
What is umbrella liability insurance?
Umbrella liability insurance is a policy designed to offer extra liability protection, especially for individuals with higher exposure to risks. It supplements existing insurance by covering claims that exceed the limits of underlying policies. This type of insurance protects personal assets from significant legal and medical expenses in lawsuits or liability situations.
Who needs umbrella insurance?
Anyone with significant assets or high liability risks should consider umbrella insurance. This includes homeowners, landlords, business owners, or individuals with a high public profile. It’s also useful for people who engage in activities like hosting large gatherings, owning rental properties, or having a teenage driver on their auto policy.
Explore affordable high-risk auto insurance to learn how it can provide essential protection for drivers facing unique challenges and help you secure reliable coverage without breaking the bank.
What is covered by an umbrella policy?
An umbrella policy covers many liabilities, including personal injury, damage to someone else’s property, legal defense costs, and even certain lawsuits that standard insurance policies exclude, such as false arrest, defamation, or rental property liabilities. It does not typically cover personal injuries to the policyholder, damages to personal property, or intentional acts.
How does umbrella insurance work?
Umbrella insurance acts as a secondary layer of coverage. For example, if you’re liable for $1.5 million in damages in an accident but your auto insurance only covers $500,000, the umbrella policy pays the additional $1 million. It works only after the limits of the underlying policies (like home or auto insurance) have been exhausted, ensuring comprehensive protection.
Can I get umbrella insurance if I already have auto insurance?
Yes, you can get umbrella insurance even if you already have auto insurance. An umbrella policy is designed to provide additional coverage over the limits of your existing policies, such as auto insurance.
Read more: Auto Insurance Quotes by Vehicle
What activities are excluded from umbrella insurance?
Certain activities, such as risky hobbies (e.g., skydiving), running a business from home, or engaging in illegal actions, may be excluded from umbrella insurance. Make sure to review your policy to understand these exclusions.
Compare over 200 auto insurance companies at once!
Secured with SHA-256 Encryption
Zach Fagiano
Licensed Insurance Broker
Zach Fagiano has been in the insurance industry for over 10 years, specializing in property and casualty and risk management consulting. He started out specializing in small businesses and moved up to large commercial real estate risks. During that time, he acquired property & casualty, life & health, and surplus lines brokers licenses. He’s now the Senior Vice President overseeing globa...
Licensed Insurance Broker
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.