Subject: Umbrella Insurance Rate Hike – Need Advice!
Hi everyone,
I just got my renewal notice for my umbrella insurance in California, and it jumped from around $1,050/year to $1,982 for $2 million in coverage. Is this normal? Seems excessive, especially considering I live in San Francisco and only have two older cars insured.
I’m the sole driver with a perfect record, while my 22-year-old driver has had a minor incident almost two years ago when they accidentally backed into a neighbor’s car.
Any tips on how to lower this rate? I appreciate any advice you can share!
Thank you!
It does seem high, especially considering your perfect driving record. Here are some suggestions to help reduce your umbrella insurance premium:
Shop Around: Don’t hesitate to get quotes from other insurance companies. Different providers assess risk differently, and you might find better rates elsewhere.
Increase your Deductibles: Increasing the deductibles on your other policies (like home and auto) may lower your umbrella rate, but make sure you’re comfortable with the higher out-of-pocket expense in case of a claim.
Bundling Policies: If you don’t already bundle your car, home, and umbrella with the same insurance company, consider doing so. Insurers often offer discounts for bundled policies.
Review Coverage Needs: Assess whether you truly need $2 million in coverage. Depending on your assets and risk profile, you might adjust the coverage to better align with your needs.
Maintain a Clean Driving Record: It sounds like you’re doing great with your record, but be aware that any incidents or claims can increase your premiums. Encourage the other driver to maintain a good record as well.
Talk to Your Agent: Discuss with your Farmers agent about your concerns. They may offer discounts or suggest changes that could save you money.
Consider Risk Factors: If the younger driver has been involved in an accident, they could be influencing your umbrella rate. If possible, see if they can complete a defensive driving course, as some insurers offer discounts for that.
Evaluate Asset Protection Needs: If your assets or lifestyle have changed since the initial policy was taken out, it might be worth revisiting how much coverage you truly need.
Look for Discounts: Check for any discounts that you might qualify for, such as being a member of certain organizations or if you have other insurance with the provider.
It’s definitely worth reviewing your policy and making sure you’re getting the best coverage for your needs at the best price. Good luck!