We’ve had an umbrella policy for several years. We have noticed the cost has more than doubled in the last few years. From $250 to $450 to now over $800 annually (no changes or claims in that time). Is this really worth the expense especially when you carry healthy auto and home coverages. Also it’s difficult to get companies to even return your call when looking around for coverage. We currently have USAA for all our insurance needs.
Umbrella Policy-Worth It?
byu/DizzyPassenger740 inpersonalfinance
Posted by DizzyPassenger740
16 Comments
Are you underinsured on home or car, have assets worth protecting and engage in a high risk lifestyle?
Shop around. We found USAA is not even close to the cheapest.
The umbrella seems high to me
It depends. Do you have assets worth more than 1 or 2 million dollars that someone could go after outside of an insurance payout? If so, yes, if not, probably not. Its fairly cheap for what it is so I tend to lean towards yes.
What level of umbrella do you have? Any new cars/houses?
Why did you have an umbrella policy?
What has changed with regard to that reasoning?
Shop for a better rate.
You need to try your best and shop around for new insurance or your not telling us something since an umbrella policy basically is a liability coverage extension that covers everything you have covered that has liability and kicks in after the liability coverage of say your vehicle was exceeded.
My thoughts are that it’s worth it and if the cost are truly increasing for this then either your insurance sucks or you had a few to many accidents or liability claims against you causing this increase.
Can you get rid of it yeah but it might not be worth it either since they might just raise your other policy’s covered by them.
The reason for an umbrella policy is the same reason you got it in the first place.
How much coverage? My policy is about $900 for $3M
Mine with Mercury also doubled. I cancelled it. The chances of getting sued and actually getting the insurance company to pay is probably ridiculously slim. They will likely exclude everything possible.
Our homeowners insurance has also doubled and our auto has gone up another 20 percent. Fuck these cunts.
If you have enough where losing it all hurts then yes
It’s also very cheap
Do you have children that suddenly started driving? Do you bundle any other insurance with them. Are you in a high insurance state like FL or CA. Seems high for the amount of coverage you are getting
Mine is $764 annually for $5 million. But I do have auto, home owners, term, and jewelry insurance with USAA. $1m/$1m coverage for auto insurance.
We do not have teenagers, just elementary school age kids, but I would imagine my payments will sky rocket once they can drive.
Kind of like all insurance, it’s not worth it until suddenly it is!
It’s peace of mind to protect your assets if you get sued.
$163/yr for $1M through State Farm.
I am paying less than $150 for 1 million. Sounds like you need to shop around your whole package of insurance and check your deductibles too. I found that my deductibles didn’t make sense versus my current take home pay for what I needed insurance to cover.
Definitely shop that policy around. It sounds like a lot. My policy is only a couple hundred a year.