Questions About Umbrella Insurance in California: How to Keep It Affordable with a Young Driver
I recently noticed a significant increase in my Farmers umbrella policy premium—from $1,000 to $3,880 for $2 million in coverage. We live in California and currently have umbrella, home, and auto insurance (covering 2 cars and 2 drivers) with Farmers.
My son, who is 22, has an accident on his record from about 2.5 years ago. He has his own car registered in his name, but it is insured under my policy.
I’m looking for advice on how to reduce the cost of the umbrella insurance. This has become quite challenging for me.
If he decides to get his own car insurance, will I still be liable and able to be sued for any accidents he causes since he is still my dependent on my taxes?
Thank you for any suggestions you might have!
It’s understandable to be concerned about rising insurance costs, especially with a youthful driver in the household. Here are some steps you can consider to potentially lower your umbrella insurance premium:
Shop Around for Quotes: Different insurance companies have varying rates for umbrella policies. It might be beneficial to get quotes from other insurers to compare costs.
Increase Auto Liability Limits: Some insurers offer lower rates on umbrella policies if you have higher underlying liability limits on your auto and home insurance. Consider discussing the cost-benefit of increasing these limits with your agent.
Bundle Policies: If you haven’t already, check if bundling your auto, home, and umbrella policies with the same insurer might yield a discount.
Review Discounts: Ask your insurance agent about any discounts you might qualify for, such as good student discounts for your son or loyalty discounts for being a long-time customer.
Consider a Different Plan for Your Son: Since your son’s car is titled in his name, he might be able to get his own car insurance policy. However, it’s essential to note that if he is living at home and is still considered a dependent, you may still be held liable for accidents, depending on California’s laws. Consulting with a legal or insurance expert can clarify your risks.
Look into Defensive Driving Courses: Some insurance companies offer discounts for drivers who complete defensive driving courses. Check if this is an option for your son.
Review Coverage Needs: Evaluate whether you really need the umbrella coverage amount you currently have. If it exceeds your needs, lowering it a bit might be a viable option for you.
Increase Deductibles: Higher deductibles on your underlying auto and home policies can sometimes lower the cost of the umbrella policy, but you’ll need to ensure you can manage the higher out-of-pocket costs in case of a claim.
Always consult with your insurance agent to discuss these options specifically for your situation as they can provide personalized advice.
Remember, even if your son has his own policy, it’s crucial to understand the insurance laws in California regarding liability, especially in the context of being a dependent. A legal or insurance professional can provide peace of mind about your specific circumstances. Good luck!