Many consumers believe that when they buy auto insurance, they automatically receive enough to cover them in any situation. Unfortunately, this is not true. If you are looking for more comprehensive coverage, you need to consider buying an umbrella policy. Here is what you need to know about umbrella insurance. 

What Is Umbrella Insurance?

Umbrella insurance is additional coverage that picks up where your auto insurance police leaves off. For instance, if you have an auto insurance policy that covers damages up to $25,000, but the damages from a car accident are $35,000, the umbrella policy would cover the $10,000 not covered by the original plan. 

An umbrella insurance policy is optional, but it can protect you. In the event that you are the person responsible for injuries or death resulting from an accident, the additional coverage could save you from having to pay out-of-pocket for damages related to the accident. 

What Should You Consider When Buying?

Before adding umbrella coverage to your insurance policy, there are several factors you need to consider. For instance, the higher premium that could come with it. Determine how much you can reasonably afford before making any changes to your policy. You can potentially offset the cost of the increased coverage by getting a higher deductible. If you do opt for the higher deductible, you need to ensure that you can cover the cost of it if you are involved in an accident and have to file a claim. 

You also need to ensure that the umbrella coverage would extend to any vehicles that you rent. If not, you could be on the hook for damages that occur while you have the vehicle, even if you were not at fault. 

The umbrella coverage needs to extend to cover you in the event that you are injured by another driver who does not have insurance or who is underinsured. You want to ensure that your own vehicle and injuries are taken care of, regardless of the other driver's insurance status. 

Finally, you want to ensure that the cover would cover punitive damages in case you wind up in court being sued by another person. Some umbrella policies do not automatically include this level of coverage. Punitive damages can be quite high, so it is imperative you find a policy that includes this coverage. 

Consult with an insurance broker like one from Edwards Insurance Agency to find out if there are other considerations you should make when shopping for an umbrella policy.