Accidents can happen to anyone, no matter how careful you may be. During previous years, 37 million injuries were treated in hospitals across the U.S. If your actions or negligence cause someone else's injury or property damage, you could be sued for hospital bills, lost income, restoration of property, and other damages. A Michigan umbrella insurance policy can help to shield your assets and savings from loss due to lawsuits.
Your car or homeowners insurance may pay for legal fees and some portion of the settlement claims awarded in a liability claim, but judgments can very easily exceed your coverage limits. Umbrella insurance picks up where your other coverage leaves off, providing extra liability insurance and peace of mind. An independent insurance agent in our network can help you find umbrella insurance in your area. Contact a member agent today to get assistance comparing Michigan umbrella insurance quotes that fit your budget.
The Potential Costs of an Accident
- On average, 5,838 Michigan residents suffer fatal injuries each year
- Non-fatal injuries that result in hospitalization cost an average of $69,777 in medical fees and lost wages
- The median number of billable attorney hours in a car accident lawsuit is 196 hours
- The median number of billable attorney hours in a premesis liability lawsuit is 218 hours
- Rates for paralegals and lawyers range from $80 to $200 per hour
These numbers are medians and averages, so your actual costs for an auto, home, or personal injury lawsuit can climb much higher or cost much less. If you are concerned that your auto and homeowners insurance may not cover all of your costs in a lawsuit, you can speak with a local agent about MI umbrella insurance options that will keep your home and money safe.
What Is at Stake in a Lawsuit?
If you directly or indirectly cause bodily injury or property damage to someone else, you can be liable for the victim's medical fees, repairs, lost wages, pain, and suffering, and legal fees. A typical car insurance policy or homeowners insurance policy includes liability coverage to pay for these expenses, but only up to the limits you specify.
If your liability coverage limit is set at $50,000 per person and $100,000 per accident, your insurance company would pay a maximum of $100,000 for a claim against you. If the total amount of your settlement and legal defense costs $500,000, that leaves $400,000 for you to pay out of your own savings and assets. If you do not have the money to pay your share of the settlement, your other assets can be at risk, such as:
- Your house
- Retirement accounts
- Future earnings
Michigan umbrella insurance provides lawsuit coverage above and beyond your other liability coverage, to help fill the gaps and protect your investments from unexpected loss due to litigation. A member agent works with several insurance providers to find the coverage and rates that suit your needs and budget.
How Much Michigan Umbrella Insurance Do You Need?
Most umbrella insurance policies start their coverage limits at $1,000,000. If you feel you are at a low risk of litigation, you may wish to opt for the $1,000,000 limit. However, when you buy extra insurance, the coverage becomes more affordable in larger quantities. You may find that a much more comprehensive amount of umbrella coverage costs little more than a baseline umbrella policy. Other factors to consider include the following:
What is your current financial status? Sadly, the deeper your pockets are, the higher your risk of a lawsuit becomes. Even if you are wrongly perceived to be well-off, you are more likely to be a target for litigation.
How high are your potential future earnings? Lawyers settling a suit may go after your future earnings if you are unable to pay the settlement. If you are currently a medical, engineering, or law student, for example, your future earnings could be quite high.
Do you have any exceptional risk factors? If you live a lifestyle that includes activities such as ATV use, hunting, and boating, or if you own a dog, pool, trampoline, or other property with the potential to cause injury to your guests and neighbors, you may need higher coverage limits.
An agent can discuss your risks and earnings with you so you can choose a suitable amount of Michigan umbrella insurance.
Find Michigan Umbrella Insurance Locally
While there are a number of different ways to get umbrella coverage, local independent agents in our network have the ability to shop for the best policy and price for your needs. These agents have relationships with multiple insurance carriers and can give you a broad range of quotes to compare. Independent agents help you asses your unique situation and find the right policy for you. These agents can also help you combine other types of coverage you need, such as boating or business insurance, to get discounts and save you time.
Contact a member agent today to compare Michigan umbrella insurance quotes.