Excess and Umbrella Insurance Coverage for McKinney Motorcyclists
People need to obtain adequate insurance to protect their assets in the event of an accident. Having either an excess or umbrella coverage for McKinney motorcyclists is an important part of a financial plan to make sure you and your family are adequately covered in the event of an accident in which they are at fault.
However, the unique aspects of these coverages and how they can impact the aftermath of a motorcycle crash can be difficult to understand. A seasoned motorbike accident attorney could clarify for you how excess and umbrella insurance coverage may play into your motorcycle accident case.
Difference Between Excess and Umbrella Coverage
While excess and umbrella coverages are similar, they are not the same. Motorcyclists should understand the difference between excess and umbrella coverages to determine which would be better suited for them.
As the name suggests, excess coverage provides coverage above the motorcyclist primary liability coverage. Before the insurers sell someone an excess policy, most insurers require that the person maintain a certain minimum primary policy.
An excess policy covers the same risk of loss as the primary policy does. If someone has a liability policy, for instance, it would provide additional coverage in the event they harm someone else over the amount of the primary policy that they bought.
While an excess policy only provides additional liability coverage for a defined risk that is identical with the underlying policy, an umbrella policy provides a full amount of coverage even for risks that may not be covered in an underlying policy.
Umbrella policies provide fuller coverage for the person buying them because they insure a greater degree of risk. However, an excess policy is still a vital part of an insurance plan.
Do Motorcyclists Need Excess and Umbrella Coverage?
If a motorcyclist has a significant amount of assets to protect in the event of their own negligence, obtaining an umbrella or excess coverage is almost always a wise thing to do. They do not know what is going to happen in the future or what choices others are going to make that could harm them.
There are many reasons to have excess and umbrella coverage, but merely being on a motorcycle is not one of them. Typically, the reason is protecting other assets that will put someone in a situation where they need that coverage.
Determine Whether Excess or Umbrella Coverage Is Right for a McKinney Motorcyclist
For most motorcyclists, they are probably better off with underinsured/uninsured policy than a big excess or umbrella policy. However, everyone’s circumstances are unique. To discuss with an experienced lawyer whether excess or umbrella coverage should be part of your McKinney motorcycle insurance, call today.