Progressive’s umbrella insurance coverage will increase your personal liability insurance after you’ve maxed out the available liability insurance coverage.
This type of car insurance
or homeowner’s insurance
will add additional coverage to an existing liability policy to protect you in the event that you’re deemed at-fault in an accident. This will prevent you from paying medical bills or car repair bills out-of-pocket once you’ve maxed out your other insurance. But just how does this coverage work, and is it worth it? Let’s take an in-depth look.
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4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ drivers What is an umbrella insurance policy?
An umbrella insurance policy is also called a personal umbrella policy (PUP). This type of coverage will increase your personal liability insurance
from your original car insurance or homeowner’s insurance policy, including nonstandard things like mental anguish. Liability coverage
on an umbrella policy will begin at $1,000,000, but you can also increase this number in $1 million increments to as high as $5 million or $10 million if you’d like, depending on your insurer. For reference, the typical limit is between $300,000 and $500,000 for a regular home or auto insurance policy, meaning that you’ll get a lot more coverage for an average yearly cost of $150 to $300. This type of insurance also can’t be bought if you don’t meet the required liability limits for your car or your home, since it only kicks in once your liability policy’s limitations have been reached.
How does umbrella insurance work with Progressive?
Now that you know a little more about umbrella insurance in general, let’s take a closer look at umbrella insurance with Progressive.
What does Progressive umbrella insurance cover?
Umbrella insurance coverage from Progressive might include any number of things like:
Personal injury coverage: Helpful if you face a libel or slander case
Worldwide coverage: Protects you while you’re traveling if you choose to take a drive
Protection for accidents involving boats, jet skis, scooters, and other rental transportation equipment
Defense coverage: Helps you pay for legal fees and court costs
This coverage will not extend to you and your vehicle—umbrella insurance is strictly for covering damages to other people and their vehicles. As the at-fault driver,
though, you will be deemed financially responsible for the other party’s accident fees in many states. With umbrella insurance, you can be certain that any additional fees or costs accrued during your travels have been paid by your insurer rather than out of pocket.
Standard car insurance from Progressive will include bodily injury liability
and property damage liability insurance
that can cover up to $50,000 and $20,000 per accident, respectively. If you exceed this amount in a single accident, you could end up owing thousands of dollars. Additionally, if any passengers experience mental anguish or other lasting effects from the accident, umbrella coverage is the only way to help without paying out of pocket!
MORE: How different types of car accidents affect your insurance rates
What it won’t cover
While umbrella insurance is a lot more extensive than the state minimum requirements, it won’t actually cover everything. There are a few things that aren’t included in the Progressive umbrella policy, including:
Damage to your own home, vehicle, property, or possessions
Physical injuries that you or your passengers get from an accident.
Vehicles used for business reasons
Anything that’s already listed on another insurance contract
These exclusions are important to note since the term “umbrella” definitely implies a lot of coverage.
MORE: How to choose the right kind of home insurance for you
How much does Progressive umbrella insurance cost?
On average, buyers who get their umbrella insurance through Progressive can expect to pay a few hundred dollars each month. Most drivers will face rates of between $150 and $300 per year.
However, the final cost of your umbrella insurance will depend on things like your driving record, which is an indicator of your risk level as a driver. As such, it’s best to get a couple of quotes before deciding on an insurer.
Who can buy a personal umbrella policy from Progressive?
In order to buy a personal umbrella policy from Progressive, you’ll need to have an existing liability policy with Progressive, too. There are also state restrictions on umbrella policies, so residents of New York
, Massachusetts
, and North Carolina
will not have access to this type of coverage. If this type of insurance is available in your area, you should consider getting it, especially if you meet one or more of these high-risk qualifications:
You have a high net worth
You have a swimming pool, trampoline, swingset, or tree house on your property
You have teenage drivers
in your household You have children of any age that you are legally responsible for
If any of these things sound like you, umbrella insurance can be a great idea. That way, if there’s an accident on your property or in your vehicle, you’ll know that your insurance will help you pay for the damages.
MORE: How to get cheap car insurance for young drivers
Is a Progressive personal liability umbrella policy worth it?
So, now that you know a little more about the liability umbrella policy from Progressive, you might be considering purchasing new insurance. Before you do, though, let’s break it down into pros and cons:
Pros
…it’s relatively affordable. Umbrella coverage usually adds between $12.50 and $25 a month to your overall insurance costs, which is pretty cheap for additional insurance and security.
…it comes with higher limits. On average, drivers will pay $60,000 for a hospital stay following an accident. The average value of a vehicle on the road today is $48,000, which adds even more money to the cost of a crash. If you don’t have umbrella coverage, you could be met with steep out-of-pocket expenses from one accident.
…it protects you against things regular auto or home insurance won’t touch. The cost of a legal defense against slander or mental anguish, for example, would not be covered by most auto insurance policies.
Cons
…it costs more. While adding umbrella insurance to your policy won’t cost you much upfront, you’ll need to meet coverage limits before you can use your new policy. These coverage limits can be pretty steep, making this type of insurance a little expensive.
…not everyone can get it. Depending on where you live, various risk factors, and prior loss history, it’s possible that umbrella insurance won’t even be available to you.
…it won’t cover your own injuries or property damage. Umbrella insurance isn’t for your expenses or property damages, so collision
or comprehensive coverage
might be a better option for you if you’re looking for minimal insurance coverage. The bottom line
Umbrella insurance is a great idea for drivers who are high-risk, like teenagers or new drivers, and for homeowners with potential hazards on their property like trampolines, swimming pools, or even dogs. If you want some extra protection in the event of an accident, this type of coverage can really help.
If you haven’t quite met the Progressive liability limits yet, however, you should build up your liability coverage before adding on umbrella insurance.
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