Umbrella questions

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blevine
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Location: New York

Umbrella questions

Post by blevine » Sat Sep 22, 2018 10:26 am

My renewal came and the price went up almost 25% this year.

I am not so much looking for advice on HOW MUCH to buy, lots of threads on that.
I have $4M (2 events per year so in theory up to $8m for 2 events).
I have a 20 year old college student on our underlying auto policy with same carrier (Allstate).
When we added him (and his car) to auto of course my umbrella went up as well,
but he has been on both for 3 years now, no recent accident (one accident 2 years ago that was arbitrated and decided not his fault,
paid mostly by the other party). So while I expected increases in the past (when I added him) I didn't expect this with no changes
in our auto this year. Went from under $1800 to over $2200 this year.


1) Wondering what is a reasonable price in my situation.

2) For next 2 years wondering if I should just accept this and focus on cost once it's just DW and I ?
While a high price, not a perpetual cost for us. I am still working and plan to do so until my kids are self sufficient and pay
these expenses themselves. I expect them to be employed, both STEM majors in college. Might get very different quotes
for just DW and I vs with a kid. Would have to shop around again, I still work and busy enough don't want to do this twice.
When I retire maybe this can be an annual ritual :-)

3) If/when it does make sense to change carriers, anyone experienced with having 2-3 carriers involved for home/auto/umbrella ?
I don't mean cost, I mean experience with an umbrella CLAIM/LAWSUIT. I can shop and see if the multi-policy discount makes it worth
moving all or splitting, but I want to know if it's even worth considering splitting the umbrella. If I did auto/umbrella with one carrier,
and home with another, or home/umbrella vs auto would there be any better result in an actual lawsuit/claim situation ? I always assumed having 3 together was most economical (maybe not anymore with this increase) and was most convenient (one call to one carrier for claims/issues).
I am biased to keep them together but tell me the pros/cons if you had claims/lawsuits.

Thanks
Last edited by blevine on Sat Sep 22, 2018 11:57 am, edited 2 times in total.

MikeG62
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Location: New Jersey

Re: Umbrella questions

Post by MikeG62 » Sat Sep 22, 2018 10:40 am

You don't say how much coverage you have.

I will say that $2,200 sounds like a lot. FWIW, I have a $5 million policy and the cost is $1,250. I could have paid less with the carrier recommended by AAA, but I am with CNA and did not want to downgrade to a lower tier insurer.

No experience with your particular question, but it would not worry me having a different insurer for my umbrella vs. home/auto.
Last edited by MikeG62 on Sat Sep 22, 2018 3:14 pm, edited 1 time in total.
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blevine
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Joined: Sat Feb 27, 2010 3:57 pm
Location: New York

Re: Umbrella questions

Post by blevine » Sat Sep 22, 2018 10:49 am

Thanks. Added the coverage amount in orig post ($4M).

Not sure what you mean by " lower tier insurer". Insurer rating/financial strength is really only relevant for a long term policy like life insurance.
You can switch to another carrier easily with home/auto/umbrella, not life (if your health declines).
Service quality does matter, but if you look at comments online everyone seems to hate their property insurers.
I am pretty happy with Allstate for auto, less so for home owners (one claim ever but they were not very generous).
Of course never used umbrella.

Years ago I paid closer to $1000 and it climbed gradually, but the huge increase to $1800 came with a kid on the auto.
I just don't know why they raised it again to $2200, same $ of coverage, and in fact my kid is now a 20 year old driver, not 17-18
as he was when first added to our policies. If anything should be lower as he gets driving experience !

Dottie57
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Re: Umbrella questions

Post by Dottie57 » Sat Sep 22, 2018 11:58 am

My home, auto and umbrella are all intertwined - especially with auto. So how many individuals and cars are you insuring? How do you know how much is umbrella vs auto vs home?

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Earl Lemongrab
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Re: Umbrella questions

Post by Earl Lemongrab » Sat Sep 22, 2018 12:39 pm

You're never going to figure out the correct price by asking random people. The only way is to shop around. Just get started doing that or go with what you have.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

MikeG62
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Location: New Jersey

Re: Umbrella questions

Post by MikeG62 » Sat Sep 22, 2018 1:37 pm

blevine wrote:
Sat Sep 22, 2018 10:49 am
Thanks. Added the coverage amount in orig post ($4M).

Not sure what you mean by " lower tier insurer". Insurer rating/financial strength is really only relevant for a long term policy like life insurance.
Yes I meant financial strength.

Maybe you are right. However, if I am sued for millions of dollars I'd want a financially stronger insurer backstopping me than a weaker one.

AAA used Stillwater. Never heard of them before AAA mentioned their name. When I looked them up online I was not overly impressed with their financial stability (it was probable fine, but not as highly rated as CNA or many others). I choose not to change for what was something like a $400 savings.
Real Knowledge Comes Only From Experience

blevine
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Location: New York

Re: Umbrella questions

Post by blevine » Sat Sep 22, 2018 2:43 pm

Dottie57 wrote:
Sat Sep 22, 2018 11:58 am
My home, auto and umbrella are all intertwined - especially with auto. So how many individuals and cars are you insuring? How do you know how much is umbrella vs auto vs home?
Self, wife and 1 20 year old child.
3 policies with one provider but each is billed separately, with some small discount for having all with same insurer.

blevine
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Location: New York

Re: Umbrella questions

Post by blevine » Sat Sep 22, 2018 2:44 pm

Earl Lemongrab wrote:
Sat Sep 22, 2018 12:39 pm
You're never going to figure out the correct price by asking random people. The only way is to shop around. Just get started doing that or go with what you have.
But I want to know what to shop for, just umbrella split off from my other policies, or keep all 3 together.

Dottie57
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Re: Umbrella questions

Post by Dottie57 » Sat Sep 22, 2018 3:10 pm

blevine wrote:
Sat Sep 22, 2018 2:44 pm
Earl Lemongrab wrote:
Sat Sep 22, 2018 12:39 pm
You're never going to figure out the correct price by asking random people. The only way is to shop around. Just get started doing that or go with what you have.
But I want to know what to shop for, just umbrella split off from my other policies, or keep all 3 together.
Keep umbrella with car and home insurance. Otherwise if you need to claim it will be problematic to get both to pay for their portion. The umbrella is an extension of car and home liability.

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Sandtrap
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Re: Umbrella questions

Post by Sandtrap » Sat Sep 22, 2018 3:12 pm

Our costs were significantly reduced when we consolidated all of our policies under one roof (USAA).
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