Quote:
Originally Posted by kkingston57
Partially correct. Both are liability coverages, but umbrella coverage only pays for claims that exceed your underlying liability coverage. If your auto liability coverage has a limit of $100,000 and you have a $1,000,000 umbrella policy and have a claim against you for $250,000, your auto policy will pay the 1st $100,000 and your umbrella will pay $150,000.
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Correct. But, also, most companies will not sell you an umbrella policy unless you already have the maximum allowable liability coverage on your home and auto policies. So, it would be unlikely that you would have an umbrella policy and also have an auto policy with only $100,000 of liability coverage. Both Allstate and State Farm will allow you to purchase an auto policy with $1 million in liability coverage. Progressive will allow up to $250,000 in liability coverage for most customers.