Why Teen Drivers make Umbrella Policies a Necessity

Car Insurance

The following story was related to us from one of our partners… 

“Mark’s summer internship in the city was a dream come true for a 17-year-old — especially because he got to drive there every day in his very own car.

His parents made sure he bought the car with his own money and also paid for the insurance, so this job definitely helped. Mark carried state minimums since that was all he could afford.

While parallel parking early one morning, Mark accidentally hit the gas instead of the brake pedal while in reverse. Just then, Erica, age 32, stepped off the curb to cross the street between the parked cars and became pinned between them. The accident led to the amputation of Erica’s legs.

She was flown to a nearby hospital to receive treatment and after her extensive inpatient care, she required a special amputee rehabilitation team to aid in her recovery process. Her post-acute treatment included physical rehabilitation, expert fitting and custom-manufacture of a prostheses to help her regain function and mobility and psychological services.

Mark’s minimum coverage for Erica’s medical bills was quickly exhausted since he was underinsured for this type of accident.

Since Erica had a $2 MM standalone personal umbrella policy with $1 MM excess UM/UIM, it kicked in after the underinsured motorist on her auto was exhausted to take care of her outstanding medical bills.”

Claim: $1.5 MM

An umbrella policy is a stand-alone policy that allows you to both protect your assets and protect yourself from the underinsured.

Even if your teen is already insured under your policy, you may want additional protection.

Those who don’t have teens are still in need of a policy that protects them from underinsured motorists. You can’t rely on others to have the proper insurance.

New teen drivers are hitting the road this summer. Contact us today to find out how our standalone personal umbrella policy with limits up to $10 MM can help protect your insured.