Residents of the state of New Mexico have varying insurance requirements, and in some cases, this includes the need for umbrella insurance. Whether you live an urban lifestyle in an Albuquerque high-rise or prefer small-town life in one of this state’s many rural villages, you may find yourself in a situation wherein you are deemed liable for significant injuries or property damage to another. Fortunately, an umbrella insurance policy can provide you with additional liability protection. Many people are surprised by how affordable this extra security is when they request umbrella insurance quotes in New Mexico.
Examples of High Liability Awards in New Mexico
- In 1994, Stella Liebeck was famously awarded $2.86 million by a New Mexico jury to compensate her for injuries sustained when a hot cup of McDonalds coffee caused her severe burns.
- Recently, a Santa Fe jury awarded $58.5 million to the family of a man killed in a traffic accident caused by the driver of a semi-trailer truck.
- In 1989, a San Juan County resident was awarded $120,000 in damages for neck injuries he sustained in a traffic accident that was caused by the defendant.
- In 1986, a New Mexico resident’s family was awarded $1.25 million for medical bills, property damage, personal injury, wrongful death, burial expenses, and punitive damages as the result of a traffic accident caused by the defendant while intoxicated.
- In 1982, a McKinley County resident was awarded $82,500 for physical injuries and the loss of a fetus when the defendant’s minor daughter caused a collision while drag-racing in her father’s car.
In today’s litigious society, most financial advisors recommend that their clients carry as much liability insurance as they can comfortably afford because juries tend to call for extremely high liability awards when cases are taken to court. Umbrella insurance is a wise investment for residents of New Mexico because it provides an affordable way to supplement the liability protection included in your current policies while protecting you from the possibility of financial hardship or bankruptcy.
What Is Umbrella Insurance?
An umbrella insurance policy increases the amount of liability coverage you have on all of your currently-held policies that include this type of coverage. If you are deemed liable for property damage or third-party bodily injury, your appropriate policy will go into effect and will cover the costs. If the amount of coverage offered by these policies is not enough to fully cover your costs, your umbrella policy will then kick in and cover the difference. The umbrella policy picks up where the other policy left off so that you are not left with extreme out-of-pocket liability expenses following a large verdict against you.
Umbrella Insurance Can Benefit Many in New Mexico
Chances are you already have liability coverage — whether through your home, auto or another policy — but sometimes the coverage limits offered by those policies may prove insufficient to fully protect you. If you are responsible for something major, such as a severe injury that requires significant and long-term care or, worse, a fatality, the liability costs can skyrocket. Having extra insurance, in the form of an umbrella insurance policy, may be necessary to keep you afloat financially.
For most people, excessive liability charges can lead to bankruptcy. If you have a great deal of wealth or have built up considerable assets, you have a lot to lose. Often, when people are seen as valuable targets, those filing lawsuits can become more tenacious and greedy. If you have not yet accumulated great wealth or assets, protecting what you have becomes even more important. Umbrella insurance may be the only thing that keeps a lawsuit from forcing you to give up a large portion of what you have worked so hard to build.
How Much Additional Coverage Do NM Residents Need?
If you bought the absolute minimum car insurance liability required, you have $10,000 in property damage coverage and for bodily injury, you have $25,000 per injured person, up to $50,000 per accident. At the maximum, most car insurance liability policies will hold limits between $300,000 to $500,000 in coverage. Renters, condo, and homeowners insurance providers normally allow you to purchase between $100,000 and $500,000 in liability coverage. If you have other insurance policies, such as for a boat or ATV, the amount of liability coverage can purchase may be limited as well.
When you take into consideration that the average cost of medical treatment for injuries sustained in a vehicular accident is more than $68,000 per person injured and the average liability costs for accidents resulting in death is currently $3.2 million, the coverage offered by your auto insurance policy may not seem like so much after all. An umbrella insurance policy will enable to you obtain millions in extra liability coverage at a rate that is not cost-prohibitive. This added coverage will pertain to all the policies you currently have.
How Much Is a Normal Umbrella Insurance Quote?
As with most insurance policies, costs will depend largely upon the amount of coverage you purchase and the level of risk you present to the insurance company. Rate quotes can vary notably from one insurance company to another, so it is a good idea to compare rates from at least three different companies before you buy. By and large, umbrella insurance policies are relatively inexpensive given the amount of coverage they can provide. The average cost to purchase an additional $1 million in liability coverage is only about $50 a month. If you have substantial assets that you wish to protect, this type of coverage may prove to be extremely valuable.
Interested in Learning More?
Umbrella insurance is not right for everyone, but many people can benefit from the extra liability coverage that it provides. An independent insurance agent in our network can help you review your current insurance policies, analyze your coverage needs, and determine whether umbrella insurance is a good fit for you. Our agents can be found throughout the state of New Mexico.
Contact an agent in or near your neighborhood now to get more information and to start reviewing umbrella insurance quotes.