Most consumers understand the reasons to carry liability and collision insurance on their vehicles. Auto liability coverage is required by North Carolina state law and collision is a financial requirement to either qualify for a loan on a vehicle or to protect yourself from the loss of the vehicle in an accident. But fewer understand the need for a personal liability umbrella policy and how that need escalates when you have a teen driver in your household.
While your teen may be the exception, due to inexperience and immaturity teen drivers are involved in more accidents and those accidents are more costly than any other category of drivers.
Teen Drivers Are Five Times More Likely to Cause an Accident Than Experienced Drivers
You may already be familiar with this fact since it is the reason the premiums for teen drivers are so much higher than other drivers. Insurance is all about protecting both parties from risk; the higher the risk factors the higher the insurance premiums.
I recently spoke with a friend who is a parent of two teenage boys about whether they had an umbrella policy. He told me he thought it would be too expensive. My reaction was “Compared to what?”
When evaluating the need for a personal liability umbrella policy, you should first consider what assets you might lose if you or your teen are responsible for an accident that kills or injures others. Too many insurance consumers assume that the coverage amounts on their car insurance policies will be sufficient to cover any liabilities. But in the case of death or permanent debilitating injuries, those amounts are rarely enough.
Without sufficient liability insurance you could be forced to either sell property you own, deplete your investments or savings or satisfy judgments against you over time through a draft on your future earnings. You owe it to yourself and your family to explore the cost of a personal liability umbrella policy that would protect all of you if this type of life altering event occurs.
Personal Liability Umbrella policies are surprisingly reasonable given the protection they provide. I consider it the “sleep better at night knowing my assets are protected” policy!
Call us today to discuss your family’s needs and how we can help you get peace of mind knowing your covered.
Thank you for your business and referrals!
PS We’re always here for you if you have any questions about how you are protected. Feel free to give us a call at 866-869-3335.