Rising liability claims from incidents like multi-car accidents, dog bites, and injuries on private property are increasingly putting Arizona residents at financial risk.
Mercury Insurance reports a 35% surge in average bodily injury payouts since the pandemic began, highlighting growing costs for homeowners and drivers when accidents exceed standard policy limits.
In response, the insurer has introduced a personal umbrella insurance policy for Arizona residents.
The policy provides additional liability coverage beyond standard home and auto policies and is available for less than $1 a day. This marks the fifth state where Mercury has launched the expanded product, following rollouts in California, Texas, Oklahoma, and Illinois.
According to Mercury Insurance vice president Brandt Minnich, the updated umbrella policy is designed to address growing financial risks.
"Unexpected accidents are becoming more costly for Arizonans, which puts them at risk of having to pay out of pocket," Minnich said. He explained that the policy serves as a supplemental safety net to shield customers from significant financial losses stemming from lawsuits or accidents.
A cautionary example highlighted by the company involved a policyholder whose financial situation had evolved significantly since initially setting their insurance coverage. After an accident that resulted in substantial medical and legal expenses exceeding their policy limits, the individual faced out-of-pocket costs that required years of payments to resolve.
Key features of Mercury's updated umbrella policy include discounts for bundling policies, a 5% discount for drivers with three years of accident- and violation-free records, and uninsured motorist coverage of up to $1 million. Policyholders can also extend liability coverage from $1 million to $2 million, depending on their needs.
Per industry guidance, umbrella insurance is often recommended for individuals seeking liability coverage that exceeds the limits of standard policies. It can protect personal assets in the event of lawsuits or costly claims.
Are liability claims and the rising costs of unexpected accidents influencing how you think about personal financial protection? Share your thoughts below.
