Questions about Affordable Umbrella Insurance in California with a Young Driver
I’m facing a significant increase in my Farmers umbrella policy premium—it’s jumped from $1,000 a year to $3,880 for $2 million in coverage. I have umbrella, home, and auto policies for two cars and two drivers, all with Farmers 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 titled in his name, though it’s insured under my policy.
I’m looking for advice on how to reduce the cost of our umbrella insurance. This increase is really weighing on me.
If my son gets his own car insurance, will I still be liable if he causes an accident since I claim him as a dependent on my taxes?
Thank you for any suggestions you might have!
I understand your frustration with the significant increase in your umbrella insurance premium, especially given your son’s status as a youthful driver with a prior accident. Here are some strategies you might consider to help lower the cost of your umbrella policy:
Increase Auto Liability Limits: Umbrella insurance typically requires certain minimum liability limits on your auto insurance policy. Check with Farmers to see if increasing those limits could qualify you for lower premiums on the umbrella policy. This could also enhance your overall coverage.
Evaluate Your Auto Insurance: Sometimes bundling policies or switching to a different company for your auto insurance can lead to discounts. Since your son is a youthful driver, you could explore insuring him under a different policy where he might qualify for good student or safe driver discounts.
Remove or Limit Coverage: If your parent policy includes optional coverages or features you might not need, consider adjusting those. Make sure you’re not carrying coverage that duplicates what’s offered by your umbrella policy.
Homeowners Policy Review: Look into your homeowners insurance. Sometimes increasing your deductible can reduce premiums, which may also help lower your umbrella costs.
Shop Around: Get quotes from other insurance companies for your umbrella policy. Rates can vary significantly between insurers, and you might find a better deal elsewhere.
Discuss with Your Agent: Reach out to your insurance agent to discuss your premium increase and see if they have recommendations specific to your situation.
Educate Your Son: Encourage your son to take a defensive driving course. Completing one can sometimes reduce premiums as it demonstrates a commitment to safe driving.
Regarding your question about liability: If your son has his own car insurance policy, he would typically be financially responsible for accidents he causes. However, in California, if he is still a dependent on your tax return, there could be circumstances where you might still be liable, particularly if he is driving your car or if you are somehow deemed to have shared liability in the accident (e.g., negligent entrustment). It might be a good idea to consult with a legal expert on this for personalized advice.
I hope this helps, and best of luck in lowering your insurance costs!