What is an Umbrella Policy for Motorcycles or Excess Coverage? - Adamson Ahdoot LLP

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What is an Umbrella Policy for Motorcycles or Excess Coverage?

October 31, 2022 Dev Jain

An umbrella policy offers extra protection against accidents where the underlying liability insurance provides limited coverage

Home » Blog » What is an Umbrella Policy for Motorcycles or Excess Coverage?

“Excess liability insurance” and “umbrella policy” for motorcycles, automobiles, or property are interchangeable. An umbrella policy is insurance coverage that gives you range and safety over and above your underlying liability insurance. Most of the time, umbrella insurance will cover your house, your car, etc., as long as you have acceptable underlying guideline assurances on each of these things you own. 

The insurance businesses that provide surplus coverage have several conditions. Mainly, regarding the minimum boundaries needed before the umbrella policy goes into action. Most of the time, the underlying limitations are $25,000 for each individual.

If you hurt someone because of your own negligence, body injury and umbrella policies protect you. If there is someone crossing the street, and you hit them, they are able to sue you and your personal items could be at risk. In the event of an accident with a passenger, they may also sue you.

Say, for example, you are in an accident and have a motorcycle policy that covers $250,000 in liability. In the case that the passenger or pedestrian involved in the incident had injuries up to $500,000, your insurance policy would take care of the coverage limits. The rest would be covered by the umbrella policy. However, if you do not have surplus coverage, the individual involved in the accident could be looking at your personal items to fulfill any condition that is awarded against you.

Excess Coverage or Umbrella Policy for Motorcycles
Getting an umbrella policy for motorcycles or automobiles ensures extra protection for accidents with limited liability coverage.

How Much Does an Umbrella Policy for Motorcycles Cost? What Coverage Does It Have?

Umbrella policies are not too expensive. A minimum of $1,000,000 is suggested in regard to excess coverage. Many umbrella or excess guidelines mandate that you have a minimum of $250,000 of underlying coverage, you would have to come up with another $150,000 if you only had a $100,000 underlying policy out of your pocket before the umbrella kicked in. It is imperative to ensure there is no gap if you are purchasing an umbrella policy.

It is extremely important to note that not all umbrella policies are the same. All umbrella or excess policies cover you over the limits of your underlying policy and up to your excess policy limits. But, only some umbrella or excess policies provide surplus liability for uninsured and underinsured lawsuits.

In other words, all umbrellas should help to save your items, but not all umbrella policies cover you if you are harmed by someone else. If you are damaged by a hit-and-run driver, the Uninsured Motorist conditions of your underlying guideline will supply coverage exclusively to the boundaries of the underlying policy.

Nonetheless, if you have sustained severe personal harm, will your umbrella policy supply more coverage? Solely if you have an umbrella policy that also protects you from Uninsured Motorist and Underinsured Motorist Coverage. In addition, if the culprit driver had some coverage, but not high enough limits to cover your hospital bills and income loss and your discomfort and grief, then you must look for extra recuperation from your umbrella or excess coverage.


California, the State with the Most Motorcycle Accidents

Being involved in an accident while riding a motorcycle is much more likely than an automobile incident. Especially in California. Mainly thanks to its fortunate climate, the golden state has the highest number of motorcyclists in the entire country, with more than 800,000. This also means being one of the states with the most motorist injuries and fatalities, as shown by the NHTSA each year. In 2020, California was the state with the second most motorcycle fatalities, with nearly 550.

Seriously Injured from a Motorcycle Crash? Let us Help!

In addition to having an umbrella policy for motorcycles, cars, and other assets, you also need to have a legal expert on your side. When an accident occurs, having an honest and experienced attorney who knows how to assist you throughout the process is vital. Especially if you are seeking financial compensation for damages.

With over 100 years of combined experience, Adamson Ahdoot knows what it takes to succeed. As one of the highest settling firms in California, our attorneys are capable of winning all types of personal injury cases. No matter the size or the cause. We are here to help you regain the peace of mind and financial compensation you deserve.

If you want to file a lawsuit and win the legal battle, you can count on us. Our team is available to listen to you 24 hours a day, 7 days a week. Call today at (800) 310-1606 for a free, no-obligation consultation.

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Our team can better advise you on your legal options once we receive any available evidence about the incident.

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