Are umbrella insurance policies even necessary for most people?

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My assets aren't near $1MM. What they gonna do? Seize my debt?

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You aren't required to have $1M in assets in order to be sued for $1M.

That's not how plaintiffs determine their damages.

An attorney could give you better advice for what is worth their time.
If you own real estate in Georgia, I don't see why a plaintiff attorney would not go for a judgment.

I'd say you're getting ripped off. I pay $150/year for $1MM in umbrella coverage with Amica. I do have home and car insurance with them as well.

Per month? That’s insane. I have an additional $1M uninsured/$5M personal excess umbrella for $570 a year

My umbrella policy is relatively inexpensive through USAA.

Hopefully never need it but want my assets to be protected if something terrible should happen. I’ve been a saver my whole life.

1. As other have said, your premiums are ridiculously high and you need to shop around for something cheaper.

2. You asked a generic question as to "most people". The answer to that question is probably no, as most people are fairly judgment proof with little to no assets.

3. If you're question is specifically as to whether YOU should have an umbrella, that's a risk analysis you need to do for yourself. Insurance is just a mechanism to shift risk, so if you feel the risk of getting hit by an excess judgment is negligible and you're prepared to self insure in the event that happens, then dump your umbrella. If you like the relatively cheap (again, shop around) peace of mind an umbrella gives, then keep it.

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Are umbrella insurance policies even necessary for most people?

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For "most"? No.

All? Yes. $112 per month must be a typo.

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The chances of wage garnishment beyond my current policy limits are slim. Garnishment I hear only happens in rare cases anyway. Most PI firms wont pursue beyond known policy limits

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Depends on what kind of income level we’re talking and the extent of the injuries.

Soft tissue injury or “injury” (wink wink) and the liable driver making $60k a year….the PI lawyer is probably just trying to get policy limits or as much as they can get a quick settlement for and move on.

Bad injuries that require multiple surgeries and the liable driver is a high earner? Now there’s juice to be squeezed beyond just the auto policy limits. And don’t forget that the other party’s health insurance is going to seek reimbursement for the medical bills for injuries you were liable for.

#1 You’re paying too much.

#2 With the cost of vehicles, health care and liability claims you can blow through $500k in a heartbeat. A friend was involved in a multi car accident he the cost of vehicle physical damage alone was in excess of $200k.

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Think it's 500/500/500. If so happens I get in a bad accident, State Farm going to fight like hell to never let the limits hit the umbrella.

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Unless you change lanes on the interstate and a car is in your blind spot. You fishtail that car, sending you into a spin as well. You and the other vehicle each hit another vehicle during the spin, and then a pileup occurs. 7 people are injured, 3 have serious injuries. During the discovery phase of the investigation, it is learned that your iPhone was unlocked via its face recognition ability a minute before the first 911 call was made.


Guarantee you’d be thrilled if you had an umbrella policy then.

Most insurance isn’t “necessary” for most but everyone should have it.

I have $3 million for about $400/year