Do I Need Excess Liability Coverage? Don’t End Up Like Mary and John!

If you've ever said to yourself, I wish I had more liability coverage for this case!, then you understand what it's like to live with the regret of not having enough coverage. Mary and John lived a life with a lot of obligations on their plate. They owned a business, had two children together, and were expecting their third child. So when they got hit by a car on his way home from work one day, they didn't have enough liability insurance in order to cover everything.

Mary and John had a baby on the way when they got hit by a car and Mary broke her ankle. Because they were self-employed, they had to pay for several months of medical care out-of-pocket. In addition, they had to pay for the damage to their vehicle. Neither of them could do much during that time because Mary was home recovering from her broken ankle. And then, as if all this wasn't bad enough, their unborn baby was born with heart defects and other complications due to the accident which eventually led to his death.

The medical bills and the loss of income made it tough for Mary and John to cover their monthly expenses. So they decided to file for bankruptcy in order to reduce the amount they had to pay every month. However, after months of struggling with the overwhelming amount of debt they had incurred because of their car accident, their bankruptcy lawyer recommended they ask for an extension on their existing liability insurance.

After reading this article, you'll know how Mary and John discovered that there are certain benefits that come with having excess liability coverage. You'll also discover what alternatives existed for them if they did not have enough insurance coverage in place at the time of the accident.

So with that, let's get started.

Benefits of Excess Liability Coverage

If you have excess liability coverage, then you're in a good position. This means that your insurance policy covers the difference, if you don't have enough coverage to cover all your losses. When you have excess insurance coverage, you can collect money from the other party's car insurance or home owners insurance for a claim. It's completely up to you whether or not to do this in the event of an accident. Though some people prefer it, most do not see this as being true justice and fairness.

Benefits of having excess liability coverage include the following:

1. Reduces the amount of time and money you have to spend: When you have more liability insurance than your needs require, you can use your excess insurance coverage to cover any costs that aren't covered by your primary policy. If you don't have enough coverage and you're at fault in an accident, then all these costs will come out of pocket, which will take a huge chunk out of your wallet. And if you're legally obligated to pay for damages in a lawsuit, then let's just say that it's going to be hard to put food on the table.

2. Applicable in case you are sued in court: In the event of a personal injury lawsuit, your liability coverage will help to pay for your legal fees, which can be costly. It will also help cover any damage judgments that have been issued against you during this time.

3. Speeds up the claims process: When people don't have enough coverage and they're at fault in an accident, then the claims process tends to take a lot longer because they have to rely on their own insurance first before reaching out to another party's insurance company. This is why it's best to have excess liability coverage in the event of an accident.

4. Helps pay for out-of-pocket expenses: If you're not at fault in an accident, then having extra liability coverage can help you pay for out-of-pocket expenses such as medical bills, car repair costs, and property damage that wasn't covered by your primary policy.

5. Offers additional protection for your assets: You want to take every precaution possible in order to protect yourself from financial losses caused by car accidents. Having more liability coverage than you need will help if someone decides to sue you because of your negligence or recklessness.

6. Provides you with peace of mind: Unfortunately, accidents do happen. And if you don't have enough coverage in place, then it's going to cost you more money and time than it should. But to have peace of mind that your insurance company will cover these costs is a bonus that only comes with having additional coverage.

Benefits of Having Excess Liability Coverage for Your Car:

If you own a car and have an active car insurance policy in the state that requires minimum liability limits, then it is important to understand that your policy can also be vulnerable if catastrophe strikes. The following are some potential problems that can arise if you do not have enough liability coverage for your vehicle:

1. If you're found to be at fault in an accident, then your insurance company will not cover your own liability. In cases where the other party is seriously injured or dies, then you will be responsible for all financial damages that have been incurred.

2. You won't be able to file a UM/UIM claim against another party's car insurance because you don't have enough coverage in place. The same can be said about medical payments. If you don't have enough coverage for your own vehicle, then the other driver won't have any liability for the medical bills of someone else who was injured in an accident involving you and him/her.

3. If you're sued in court for a car accident, then you will have to pay for your own attorney's fees. The other driver won't have any liability to cover your legal expenses, and your insurance company won't be responsible for that as well.

4. If you need to file an SR-22, so you can reinstate your driving privileges after a DUI conviction because of not having enough coverage, then it's going to cost you more money than is necessary. You could easily avoid this extra cost by purchasing the additional liability coverage for your vehicle which comes standard with most car insurance policies.

Conclusion

If you have enough liability coverage for your vehicle, then you're in a good position. But having too much coverage means that it can be detrimental to your own financial situation and that of others around you, which is why it's important to understand the benefits of having excess liability coverage.

If you own a car and have an active car insurance policy in the state that requires minimum liability limits, then it is important to understand that your policy can also be vulnerable if catastrophe strikes. The following are some potential problems that can arise if you do not have enough liability coverage for your vehicle:

1. If you're found to be at fault in an accident, then your insurance company will not cover your own liability.