If you want the maximum protection possible from your automobile insurance policy, consider asking your insurance agent for a quote for a personal umbrella policy. This coverage typically insures you for an additional $1,000,000 in liability, uninsured and underinsured motorist coverage. While many people are not currently in the market for this amount of insurance coverage, it is a fairly inexpensive way to protect your own future earning capacity against accidental loss in a motor vehicle accident. A typical personal umbrella policy requires you to carry $500,000 in liability, uninsured, underinsured, and homeowner’s coverage. For an additional premium per year, your insurance overages are increased by $1,000,000.
Your future earning capacity is an important asset to protect. A 30 year old wage earner, currently earning $30,000 per year, can expect to earn more than $1,000,000 over the next 35 years. If this 30 year old person couldn’t work again because of an automobile or motorcycle accident caused by the fault of another driver, a claim could be made against that driver. The bad news is that Pennsylvania only requires that each driver carry $15,000 in liability insurance with the average motorist carrying as little as $25,000 in coverage. The good news is that you can protect yourself and your family with uninsured and underinsured motorist coverage. You can also protect yourself with the personal umbrella coverage. While this coverage may not appeal to you now, it is important to understand what is available on the insurance market.