Is $1,982/year for a $2 million umbrella policy in California with Farmers too high? I’d like to lower this cost!
I live in San Francisco, have two older cars, and one driver with a perfect record (me), and then there’s a 22-year-old driver who had a minor incident nearly two years ago.
My umbrella insurance has skyrocketed from around $1,050/year in 2024 to $1,982. It’s outrageous considering our car and house insurance costs are already quite high.
I appreciate any advice you can share! Thank you!
It sounds like you’re facing a significant increase in your umbrella insurance premium, and that can be frustrating! Here are some steps you might consider to help reduce your rate:
Review Coverage Limits: Double-check if you truly need the $2 million coverage. Depending on your assets, adjusting this amount could lower your premium.
Shop Around: Get quotes from other insurance providers. Sometimes switching insurers can yield better rates, especially if you bundle your home, auto, and umbrella policies.
Increase Deductibles: If you’re comfortable with it, consider raising your deductibles on your other insurance policies. This can sometimes lower your umbrella policy premium.
Take Advantage of Discounts: Inquire about any discounts you may qualify for, such as multi-policy, safe driver discounts, or discounts for having certain security features on your home.
Evaluate Your Drivers: Since you mentioned a younger driver with a past incident, their driving record could significantly affect your premium. Consider additional driver training programs for them, as some insurers offer discounts for completed courses.
Discuss with Your Agent: Sometimes an agent can find ways to adjust your policy or recommend changes that can bring costs down.
Reassess Your Need for Umbrella Insurance: If you don’t have significant assets to protect, evaluate if you need umbrella coverage or if you could get by with a lower limit.
It’s always a good idea to communicate with your insurance agent about your concerns; they might have tailored advice for your specific situation. Good luck!