Consider this – you are only a few years away from being able to finally retire.  You have amassed a nice sized retirement account and you have finally managed to pay off both your home and your car.  Added all together, you might have assets that amount to near a million.  You have done well for yourself.

One day, as you are driving along, you get into an accident.  Thank goodness you aren’t hurt badly and the damage that your vehicle sustained is within the coverage limits of your auto insurance.  However, the other vehicle was carrying execs from a rather large company.  The damage to their vehicle and their bodies is a bit more serious.

The ruling of the court is that you are the responsible party and have to pay for the damages to the other party’s vehicle along with their medical expenses and lost wages.  The total comes to about a million dollars.  Your vehicle insurance will cover around $250,000 but you are left on the hook for the difference. 

If you are like most people, this could financially ruin you. Unless you happen to have an umbrella insurance policy.  This is a type of insurance that will take over when you hit the overage limits of your other insurance policies.  In cases like this, it could handle the balance as well as any legal costs.  This will save you from losing all of your assets, including your retirement, just because of an accident. 

Remember that coverages and policies will vary by state so make sure that you know what you are getting and what it covers.  If you are in the Bethlehem, PA area, come on into Saucon Insurance Agency where are friendly and knowledgeable agents are standing by and ready to assist you.