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URL:  http://boards.fool.com/so-you-might-some-day-face-a-situation-where-21010535.aspx

Subject:  Re: Auto liability and umbrella coverage Date:  7/12/2004  12:30 PM
Author:  Foolferlove Number:  12077 of 18075

so, you might some day face a situation where your insurer will not contest, voluntarily pay a policy limit and discontinue defense of a suit for damages over the policy limit. An insurer doesn't have to provide defense to try to contain an award within your policy limits. Competent defense attorney fees to represent you and your remaining exposed $300,000 in personal assets (plus future income), alone, can quickly surpass the moderate premiums for an Umbrella Liability policy. Generally, insurers retain some of the very best defense attorneys and they pay them well, when and to the extent that their assets are on the line.

So if I have auto insurance with State Farm (heh heh) and an umbrella policy with someone else and I get sued. Could both companies work together to defend me and/or reduce the damages? Because both companies would have assets on the line.

I've always assumed one would get an umbrella policy with a different insurer than the underlying policies. Would I ever want to get an umbrella policy from the same company as my auto liability?
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