When it comes to car insurance, Texas is among the 48 US states which enforce strict regulations on car insurance – in plain English, every motorist is required to carry one at all times while driving on public roads. The penalties and risks that one exposes themselves to are proportionate with the strictness of this policy and this all the more true for commercial car fleets. Now, if you live, own a business, and drive in Dallas, you may be aware of the existence of Dallas umbrella car insurance policies. This, on the other hand, doesn’t automatically entail that you need such a policy simply because you’re an entrepreneur. In the following, we examine the basic concepts of umbrella car insurance policies and make an effort to help you work out whether or not you need one yourself.
The definition of Dallas umbrella car insurance policies
The term ‘umbrella policies’ is rather self-explanatory, in the sense that, much like an umbrella will keep you safe and dry in the rain, such an insurance policy will make sure you are protected in case of a lawsuit. Regular vehicle insurance policies in Dallas will only go so far, when it comes to protecting your wealth and other assets, in case of an accident or any other forms of liability. What Dallas umbrella car insurance policies do is extend those typical liability limits to the point where they keep you safe from massive expenses. Know that you can also take out umbrella insurance policies for other purposes, such as for covering your home or watercraft.
How much will umbrella policies cover for?
The coverage limit for Dallas umbrella car insurance policies is entirely up to the policyholder. However, you should know that they are usually comprehensive and the typical starting point is at around $1 million. They will cover any and all assets you own and make sure your estate stays safe, even in the event of a complicated and costly lawsuit.
Who can apply for umbrella car insurance in Dallas?
Given the comprehensive nature of these policies, not everyone can apply for them. Before you can enroll, you need to have extensive liability limits on all the coverage policies to your name. This means that if your liabilities are not extended enough, you will not be allowed to apply for an umbrella policy. Usually, the minimum liability coverage you need to have in Dallas is $250,000 for bodily injuries per person and $500,000 per car accident.
How do umbrella car insurance policies work?
Umbrella car insurance policies will cover for everything that your regular car insurance will not. In other words, if you’ve got vehicle insurance that will cover for $500,000 in liabilities, but the expenses you incur in the case of an accident amount to $800,000, your umbrella policy will cover for the rest of the expenses, i.e. $300,000.
How can you find the best umbrella policy?
Given the complex nature of these policies, the best way to go about finding them is to consult with a car insurance agent in Dallas. Remember that not everyone is meant to have such insurance – they are usually advisable, however, for business owners, as well as other people of considerable wealth and status.