Questions About CA Umbrella Insurance: How to Make It Affordable With a Young Driver?
This year, I noticed a significant increase in my Farmers umbrella policy premium, jumping from $1,000 per year to $3,880 for $2 million in coverage. We live in California and currently hold an umbrella, home, and auto insurance policy with Farmers that covers two cars and two drivers.
My 22-year-old son has an accident on his record from two and a half years ago and owns a car that is titled in his name, but it’s insured under my policy.
I’m looking for ways to reduce the cost of the umbrella insurance, as I’m really struggling with these premium increases.
If he were to get his own car insurance, would I still be at risk of being sued for any accidents he causes, considering he’s a dependent on my taxes?
Any suggestions would be greatly appreciated! Thank you!
It sounds like you’re facing a challenging situation with your insurance costs. Here are some strategies you could consider to potentially lower your umbrella insurance premium:
Increase Your Deductible: Sometimes increasing your auto or home insurance deductibles can lower your premiums. Just make sure you can afford the higher out-of-pocket expense in case of a claim.
Shop Around: Rates can vary significantly between insurers. Get quotes from different insurance companies to see if you can find a better rate for your umbrella policy or for the underlying auto and home policies.
Bundle Policies: Since you already have multiple policies with Farmers, check if bundling them results in a discount. Sometimes, even small changes to the package can help.
Remove Coverage You Don’t Need: Review your home and auto policies to ensure you’re not over-insured or paying for unnecessary coverage.
Consider Your Son’s Own Insurance Policy: If your son were to take out his own auto insurance policy, it may impact your umbrella coverage, as the umbrella usually extends over your household’s primary insurance policies. Contact your insurer to discuss the implications. Generally, if he has his own policy, it might reduce your liability exposure, but it’s essential to clarify with your agent if you could still be held liable as a dependent on your taxes.
Good Driving Course: Encourage your son to take a defensive driving course, which sometimes qualifies for discounts on insurance premiums.
Review Your Son’s Driving Record: If the accident on your son’s record is over three years old, it may stop affecting your umbrella policy rates. Confirm with your insurer when that will no longer be a consideration.
Discuss with Your Agent: Work closely with your insurance agent. They may offer specific advice tailored to your situation, or identify discounts or options you might not be aware of.
Consider a Higher Liability Insurance Limit on Auto Policies: Sometimes having higher liability limits on your car insurance can provide a stronger basis for your umbrella policy, and in some cases, that might lower your overall risk profile.
Regarding your liability if your son has his own car insurance: Generally, if he has his own policy and he is at fault in an accident, then his own insurance will cover him. However, if he is still claimed as a dependent on your taxes, it’s worth discussing this with your agent to get clarity on how liability works in your specific case.
Ultimately, every family’s situation is unique. Don’t hesitate to reach out to various insurance agents to find coverage that works best for you!