How Many Here Have Umbrella Liability Coverage?

[VungTau]

Quote:

Originally Posted by NYEXPAT No insurance of any kind, I'd be dead before a lawsuit came to trial in my country!

Same here. Living in Asia there is a small chance of a lawsuit, it's just a totally different society. Plus I don't drive and have no properties so I can't see much of a risk.

[6miths]

Quote:

Originally Posted by VungTau Same here. Living in Asia there is a small chance of a lawsuit, it's just a totally different society. Plus I don't drive and have no properties so I can't see much of a risk.

Same here. Canada.

[gerntz]

Yes, at about 2/3 of NW. And I hope I never benefit from it. That would be awful.

[Andre1969]

I wanted to get an umbrella policy years ago, but ran into a complication. My Dad had bought a car, and put my name on the title, thinking it would make it easier to transfer to me when he passed away. I remember that being a sticking point...the insurance company was worried that, because my name was on Dad's car, it could theoretically get me into some trouble if he did something lawsuit-worthy with that car.


At first, they said they could just put it into the policy that they wouldn't cover anything resulting from that, but then, they simply refused. Well, Dad has passed away now. But, only problem is, I did it again. In 2012, I bought a new truck, and my uncle let me use his old one as a trade in. So, I put his name on the title, so he'd have my new truck if I died, with a minimum of fuss. At the time, Dad was still alive, so I wasn't thinking about umbrella policies.

[Islandtraveler]

I think I'm getting hosed. I pay $1,132 a year for 2 Mil. Wait until I see that greedy gecko.

[Dtail]

Quote:

Originally Posted by Islandtraveler I think I'm getting hosed. I pay $1,132 a year for 2 Mil. Wait until I see that greedy gecko.

Are you covering teenagers?
That is the highest I have heard for 2mm coverage though.

[Sunset]

Quote:

Originally Posted by Andre1969 I wanted to get an umbrella policy years ago, but ran into a complication. My Dad had bought a car, and put my name on the title, thinking it would make it easier to transfer to me when he passed away. I remember that being a sticking point...the insurance company was worried that, because my name was on Dad's car, it could theoretically get me into some trouble if he did something lawsuit-worthy with that car. At first, they said they could just put it into the policy that they wouldn't cover anything resulting from that, but then, they simply refused. Well, Dad has passed away now. But, only problem is, I did it again. In 2012, I bought a new truck, and my uncle let me use his old one as a trade in. So, I put his name on the title, so he'd have my new truck if I died, with a minimum of fuss. At the time, Dad was still alive, so I wasn't thinking about umbrella policies.

From the previous reasoning of Dad having car in your name.
This (Bold) won't stop Umbrella, because if you get into an accident, he will be sued, not you.

[Andre1969]

Quote:

Originally Posted by Sunset From the previous reasoning of Dad having car in your name. This (Bold) won't stop Umbrella, because if you get into an accident, he will be sued, not you.

but, if my Dad got into an accident that made for a big enough lawsuit, won't they possibly come after me as well, since I'm an owner of the vehicle? As in, if my Dad's insurance didn't wasn't enough to cover it, wouldn't they try to go "where the money is"?



As for my truck, that I put my uncle's name on, he does drive it every once in awhile. So the insurance company might still look at that as too much of a risk. I guess I could revisit them, and find out.

[ncbill]

Teenage drivers & way too many vehicles all push up my umbrella rate.

Owning rental home(s) can have an even bigger impact than the above.

I'll probably soon move the kids onto their own auto policies.

[Islandtraveler]

Quote:

Originally Posted by Dtail Are you covering teenagers? That is the highest I have heard for 2mm coverage though.

I have one 23 year old boy. He has had only one moving violation since he started driving. I think I will look into a separate policy for him. Saved a bundle on Health Insurance that way too.

[gwraigty]

Quote:

Originally Posted by Sunset From the previous reasoning of Dad having car in your name. This (Bold) won't stop Umbrella, because if you get into an accident, he will be sued, not you.

This might depend on state law. See below...

Quote:

Originally Posted by Andre1969 but, if my Dad got into an accident that made for a big enough lawsuit, won't they possibly come after me as well, since I'm an owner of the vehicle? As in, if my Dad's insurance didn't wasn't enough to cover it, wouldn't they try to go "where the money is"?

Disclaimer: IANAL and state law on this may vary.

Possibly. In my state, there is something called owner's liability. The biggest risk is a single owner on the car title who lends their car to someone else, even between spouses. Both the driver and the owner of the car can be sued, even if the owner wasn't present in the car.

Example: a car is titled to only one spouse. The other spouse drives the car and gets into an at-fault accident. The spouse driver is sued and the spouse owner is sued for giving their spouse permission to drive the car. Joint assets are 100% at risk as well as individually owned assets, excluding exempt assets, of course.

The risk is somewhat mitigated when the car is jointly titled and the car is only driven by the joint owners, also because of state law. There is no owner's liability involved between joint owners, as both have permission to drive the car. In my state, joint owners are considered to own 50% of the property.

Example: a car is jointly titled to both spouses. One spouse gets into an at-fault accident. The spouse driver is sued. The other spouse can't be successfully sued as s/he couldn't deny or grant permission for the driving spouse to drive the car. Both have equal rights to drive the car. Only 50% of assets may be at risk in a lawsuit, because per my state law, each jointly owned account/property is considered 50% owned among 2 joint owners. The 50% deemed to belong to the non-driving joint owner is off-limits.

YMMV. If a state doesn't impose owner's liability in car accidents, it's a moot point. If a state considers joint owners to all own 100% of the assets, then it all could be up for grabs in a lawsuit.

It pays to know who you should own property/accounts with and why.

[Sunset]

^^^^ interesting, any chance there is a website that lists the States ?

[gwraigty]

Quote:

Originally Posted by Sunset ^^^^ interesting, any chance there is a website that lists the States ?

I researched my state law directly, so I don't know.