Auto accidents can escalate quickly, resulting in significant property damage and medical expenses. In serious situations, medical bills alone can exceed $40,000 in Amarillo, TX. Texas insurance law requires only $30,000 of bodily injury coverage per person. When damages exceed policy limits, the at-fault driver may face lawsuits and be responsible for the remaining costs. Umbrella insurance can offer valuable financial protection.
Liability Policy
Liability insurance helps pay for the other party’s medical expenses or property damage when you are at fault, but it does not cover your own expenses. Liability coverage may also help pay for settlements if someone sues you because your auto insurance limits were not high enough to cover the full cost of an accident. An agent at Nest Insurance Agency can help you understand how this works.
Secondary Policy
Your auto insurance policy pays first. It covers damages up to its limits. For example, if the other party’s medical expenses total $95,000 and your policy provides only the minimum $30,000 required by law, your insurer will pay $30,000. That leaves a $65,000 balance. An umbrella insurance policy can help cover this remaining amount.
Filing Claims
It is helpful, but not required, to have both your auto policy and umbrella policy with the same company. Regardless, filing claims is straightforward. First, file a claim with your auto insurance company and inform them that you have umbrella coverage.
After your auto policy reaches its limit, you can file a claim with your umbrella insurance provider. You should contact your umbrella insurer early to verify any additional steps you may need to follow.
The experienced agents at Nest Insurance Agency can help you understand how umbrella insurance works and ensure you have the protection you need. Contact us today. We proudly serve the Amarillo, TX, area.
