Seeking Affordable Umbrella Insurance in California with a Young Driver
I’m facing a significant increase in my Farmers umbrella policy this year. The premium for my $2 million coverage skyrocketed from $1,000 to $3,880 annually. I currently have umbrella, home, and auto insurance through Farmers, covering two cars and two drivers in California.
My 22-year-old son, who has an accident on his record from two and a half years ago, has his own car registered in his name, but it’s included on my policy.
I’m looking for strategies to reduce the cost of my umbrella insurance. This situation is challenging for me financially.
If he were to get his own car insurance, could I still be held liable for any accidents he causes, considering he’s a dependent on my tax return?
I appreciate any advice or suggestions you may have. Thank you!
Hi there,
I understand how challenging it can be to manage insurance costs, especially with a youthful driver in the mix. Here are some suggestions you might find helpful for lowering your umbrella insurance premium:
Increase Your Home and Auto Liability Limits: Sometimes, you can lower your umbrella policy cost by increasing the liability limits on your underlying home and auto insurance policies. Insurers may offer discounts if you have higher liability coverage.
Shop Around: Different insurance companies have different pricing structures and underwriting criteria. It could be worthwhile to get quotes from other insurers for both your umbrella and auto insurance to see if you can find a better deal.
Consider a Higher Deductible: If you’re comfortable adjusting your deductible, you might consider increasing your auto insurance deductible. This can potentially lower your auto insurance premium, which in turn might influence your umbrella policy cost.
Driver Eligibility: Since your son is 22 with an accident on record, his risk factor likely impacts your umbrella insurance. Encourage him to take a defensive driving course, which may help reduce his individual auto premium and possibly influence your umbrella insurance rate by demonstrating he’s taking steps to be a safer driver.
Review Your Discounts: Ensure that you are utilizing all available discounts on your policies. These can include multi-policy discounts (if you are insuring your home, car, and umbrella with the same company), safe driver discounts, and many others.
Evaluating Your Umbrella Coverage Needs: Assess whether you actually need $2 million in coverage or if you could find a comfortable level that reduces your premium but still provides adequate protection for your lifestyle and assets.
Regarding your second question: If your son has his own car insurance policy, he would generally be responsible for accidents that occur while driving his own vehicle. However, since you claim him as a dependent on your taxes, there is a possibility that you could still be held liable, depending on the circumstances of the accident and California law. It would be best to consult a legal professional to understand the nuances of liability in your specific situation.
Make sure to discuss these options with your insurance agent, as they can provide tailored advice based on your specific circumstances. Good luck, and I hope you find some relief with your premiums!