Jennifer: I was comparing auto insurance and was wondering if I should purchase an umbrella liability policy?

Response: Let me explain to you this if you are ever sued, your standard homeowners or auto policy will provide you with some liability coverage, paying for judgements against you and your attorney’s fees, up to a limit set in the policy. However, in our litigious society, you may want to have an extra layer of liability protection. That’s what a personal umbrella liability policy provides.

An umbrella policy kicks in when you reach the limit on the underlying liability coverage in a homeowners, renters, condo or auto policy. It will also cover you for things such as libel and slander.

For about $150 to $300 per year you can buy a $1 million personal umbrella liability policy. The next million will cost about $75, and $50 for every million after that.

Because the personal umbrella policy goes into effect after the underlying coverage is exhausted, there are certain limits that usually must be met in order to purchase this coverage. Most insurers will want you to have about $250,000 of liability insurance on your auto policy and $300,000 of liability insurance on your homeowners policy before selling you an umbrella liability policy for $1 million of additional coverage.

Buying an umbrella cover is only after you have the fist auto insurance and home insurance policy. Compare auto insurance quote always for cheap auto insurance rate.

Larry : What is a deductible under an auto insurance policy? Do I need a deductible under my car insurance policy?

Deductible gives you low auto insurance rates or auto insurance discounts

Response : You must have heard many people say that if you want a low auto insurance rate than you need to review car insurance coverage or compare auto insurance quotes and check your deductible. The higher the deductible you keep, you get a low auto insurance rate. Yes, it is true.

A deductible under the auto insurance policy is an amount that the insured -you would pay out of your pocket in case you have a claim.
For example: If your vehicle sustains $4,000 worth of damage in an accident and your collision coverage deductible is $500, then you will be responsible to pay the first $500 and your insurance company would pay the remaining $3,500.

You can choose different limits of deductible amounts for your auto insurance policy for your collision coverage and your comprehensive coverage. The advantage of keeping a higher deductible under an auto insurance policy is that the higher the deductible is the lower or cheaper will be your car insurance quote. You can save premium. However, please remember that if you keep a very higher deductible under the auto insurance than you would have to shell out that amount in a case of an accident, thus you need to be careful when you select a deductible under auto insurance. You can compare auto insurance to save insurance premium instead of going for very high quotes.

Thanks.
Kamlesh