GEICO Umbrella: Significant Increase in Premium

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creant
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GEICO Umbrella: Significant Increase in Premium

Post by creant »

GEICO has significantly increased the premium for my Umbrella insurance by 90% for the cars, no change for the house, and 60% for the 2nd million coverage. When I called and asked why, they said it has nothing to do with me personally but, instead, my state has seen significant increased claims and therefore GEICO has raised them for everyone.

GEICO has previously made no to small increases but never like this. Has anyone else experienced this?

What is the easiest way to check other umbrella quotes? What are the other major umbrella companies?
crefwatch
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Re: GEICO Umbrella: Significant Increase in Premium

Post by crefwatch »

Is your umbrella really separated for the cars? I simply must have the policy maximum liability ($300K or so, I forget) for each car, and for the house ($500k). After that, the umbrella price is the umbrella price. Can you quote us the bill, with the dollars disguised?

I don't use GEICO, but I recall reading that they have a reputation for using credit scores and job categories to cherry pick their best rates. No proof in hand that this is so.
Planner01
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Re: GEICO Umbrella: Significant Increase in Premium

Post by Planner01 »

I have an umbrella policy with Geico for $1M, as well as the cars, and home. I was paying $200 for the year. The new premium as of September when it renews is $362!
I called Amica and they gave me a lower quote for the cars and $250 for the umbrella policy.
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batpot
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Re: GEICO Umbrella: Significant Increase in Premium

Post by batpot »

For the first time, Amica was competitive.

They're only slightly cheaper on the whole, but close enough to switch.

Time to start shopping...
neilpilot
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Re: GEICO Umbrella: Significant Increase in Premium

Post by neilpilot »

My Geico $2M went from $272 in April 2018 to $290 late April 2020. I'm not sure what the 2019 premium was.
Freefun
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Re: GEICO Umbrella: Significant Increase in Premium

Post by Freefun »

I went from 340 to 580.
Remember when you wanted what you currently have?
Grt2bOutdoors
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Re: GEICO Umbrella: Significant Increase in Premium

Post by Grt2bOutdoors »

I find Geico is no longer the cheapest provider. You have to either accept it, or shop around. A pain in the neck because the other providers want the car insurance and that is where I find they like to Jack the rates. I’ll get a low quote for umbrella but a much higher quote for auto. In the end it’s like a wash. Besides, tell me where you can find an attorney for under a thousand anywhere? I know the likelihood is low, but that one time you do get sued for an excessive amount you’ll be glad you paid whatever you did for it.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
fsrph
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Re: GEICO Umbrella: Significant Increase in Premium

Post by fsrph »

Maybe GEICO's umbrella policies had increases due to GEICO's 15% reduction to the following, "We're offering a 15% policy credit to new and existing auto, motorcycle, and RV policyholders on 6-month and 12-month polices until October 7, 2020."

https://www.geico.com/about/coronavirus/

Francis
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Rob5TCP
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Re: GEICO Umbrella: Significant Increase in Premium

Post by Rob5TCP »

My umbrella has only gone up about 30% over the past 5-6 years.
I now pay $426 for 2mil; paid about $325 in 2015.
SlowMovingInvestor
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Re: GEICO Umbrella: Significant Increase in Premium

Post by SlowMovingInvestor »

fsrph wrote: Thu Aug 06, 2020 5:31 pm Maybe GEICO's umbrella policies had increases due to GEICO's 15% reduction to the following, "We're offering a 15% policy credit to new and existing auto, motorcycle, and RV policyholders on 6-month and 12-month polices until October 7, 2020."

https://www.geico.com/about/coronavirus/
It's still the same coverage. If anything, one would expect umbrella policies to go down for the same reasons auto policies went down -- less travel.

Now if you're saying that GEICO is increasing umbrella policies to increase revenue and compensate for auto policy revenue going down, that's possible -- but I would guess that umbrella coverage premium revenue is a tiny fraction of GEICO auto premiums revenue.
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Flobes
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Re: GEICO Umbrella: Significant Increase in Premium

Post by Flobes »

My GEICO $1million umbrella renewed last month with no increase @$120/year.
Oilcans
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Re: GEICO Umbrella: Significant Increase in Premium

Post by Oilcans »

Have Allstate homeowner's which went up $203 this year.


$5 million umbrella with Allstate has been $574.15 since 2016.
Planner01
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Re: GEICO Umbrella: Significant Increase in Premium

Post by Planner01 »

fsrph wrote: Thu Aug 06, 2020 5:31 pm Maybe GEICO's umbrella policies had increases due to GEICO's 15% reduction to the following, "We're offering a 15% policy credit to new and existing auto, motorcycle, and RV policyholders on 6-month and 12-month polices until October 7, 2020."

https://www.geico.com/about/coronavirus/

Francis
Our vehicles insurance went up, even after you apply the “15% discount.” I think we now pay a few hundred MORE for a 6-month policy on the two cars.
winner23red
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Re: GEICO Umbrella: Significant Increase in Premium

Post by winner23red »

crefwatch wrote: Thu Aug 06, 2020 3:47 pm Is your umbrella really separated for the cars? I simply must have the policy maximum liability ($300K or so, I forget) for each car, and for the house ($500k). After that, the umbrella price is the umbrella price.
+1
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millennialmillions
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Re: GEICO Umbrella: Significant Increase in Premium

Post by millennialmillions »

creant wrote: Thu Aug 06, 2020 3:32 pm GEICO has significantly increased the premium for my Umbrella insurance by 90% for the cars, no change for the house, and 60% for the 2nd million coverage.
Insurance industry insider here. It seems you may be misunderstanding the premium increase. Umbrella insurance premiums are not split into coverage for your car, house, etc. Your underlying risk items are factors in pricing, but you only have one combined premium for umbrella insurance.

Umbrella insurance, like auto and home, is priced using complex algorithms that vary from insurer to insurer. If you're not happy with your new price, your best option is to shop around. If you value the simplicity of having your insurance in one place (like I do), you can get quotes for auto, home, and umbrella at a few of the top companies like Progressive, State Farm, and Allstate and go with whichever is cheapest overall. I bet one of those 3 will have a cheaper option for you.
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creant
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Re: GEICO Umbrella: Significant Increase in Premium

Post by creant »

millennialmillions wrote: Thu Aug 06, 2020 8:45 pm Insurance industry insider here. It seems you may be misunderstanding the premium increase. Umbrella insurance premiums are not split into coverage for your car, house, etc. Your underlying risk items are factors in pricing, but you only have one combined premium for umbrella insurance.

Umbrella insurance, like auto and home, is priced using complex algorithms that vary from insurer to insurer. If you're not happy with your new price, your best option is to shop around. If you value the simplicity of having your insurance in one place (like I do), you can get quotes for auto, home, and umbrella at a few of the top companies like Progressive, State Farm, and Allstate and go with whichever is cheapest overall. I bet one of those 3 will have a cheaper option for you.
GEICO provides line item quotes of each component of the combined premium.

Are there any issues if one gets umbrella from a different company than auto and home?
neilpilot
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Re: GEICO Umbrella: Significant Increase in Premium

Post by neilpilot »

creant wrote: Fri Aug 07, 2020 10:07 am

Are there any issues if one gets umbrella from a different company than auto and home?
I have auto & umbrella thru GEICO and home elsewhere. Most companies will only write you umbrella if you have either auto, home or both with them. There are a few who specialize in stand alone umbrella, and have been mentioned in previous threads.

One issue is that, should you need to defend against a lawsuit involving auto or homeowner coverage, and you have umbrella with another company, they will need to coordinate your defense.
RudyS
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Re: GEICO Umbrella: Significant Increase in Premium

Post by RudyS »

creant wrote: Fri Aug 07, 2020 10:07 am
millennialmillions wrote: Thu Aug 06, 2020 8:45 pm Insurance industry insider here. It seems you may be misunderstanding the premium increase. Umbrella insurance premiums are not split into coverage for your car, house, etc. Your underlying risk items are factors in pricing, but you only have one combined premium for umbrella insurance.

Umbrella insurance, like auto and home, is priced using complex algorithms that vary from insurer to insurer. If you're not happy with your new price, your best option is to shop around. If you value the simplicity of having your insurance in one place (like I do), you can get quotes for auto, home, and umbrella at a few of the top companies like Progressive, State Farm, and Allstate and go with whichever is cheapest overall. I bet one of those 3 will have a cheaper option for you.
GEICO provides line item quotes of each component of the combined premium.

Are there any issues if one gets umbrella from a different company than auto and home?
Previously had AutoOwners write my Umbrella policy; never saw a breakdown by category. Switched to Geico when we moved, and sure enough, the premium is broken down by these categories. Just a minor change from last year; renters didn't change at all, neither did auto except for the 15% reduction
talzara
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Re: GEICO Umbrella: Significant Increase in Premium

Post by talzara »

millennialmillions wrote: Thu Aug 06, 2020 8:45 pm Insurance industry insider here. ... Umbrella insurance, like auto and home, is priced using complex algorithms that vary from insurer to insurer. If you're not happy with your new price, your best option is to shop around.
Umbrella insurance is not priced using complex algorithms. It's priced using simple tables, the same way that insurance was priced in the 1950s. It's not like auto insurance or homeowners insurance, which can take over 300 steps to calculate. GEICO's umbrella rate manual is only 4 pages long.

You can take advantage of this if you have a deeply discounted automobile policy from an insurer that offers liability limits of $1-2 million. This can be much cheaper than adding umbrella coverage, because your auto discounts will still apply to the increased limits. When you buy umbrella, you move to a much simpler rate structure that has fewer discounts.

However, many insurers only go up to 500k on primary auto liability. If you want higher limits, then you can only shop your umbrella policy.
SlowMovingInvestor
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Re: GEICO Umbrella: Significant Increase in Premium

Post by SlowMovingInvestor »

millennialmillions wrote: Thu Aug 06, 2020 8:45 pm
Insurance industry insider here. It seems you may be misunderstanding the premium increase. Umbrella insurance premiums are not split into coverage for your car, house, etc. Your underlying risk items are factors in pricing, but you only have one combined premium for umbrella insurance.
For me at least they are. When I got a new car (but had not yet disposed of my old car), my umbrella policy premium went up, and I recollect I was told that it would go down when I sold/donated the old car.
FBM
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Re: GEICO Umbrella: Significant Increase in Premium

Post by FBM »

creant wrote: Thu Aug 06, 2020 3:32 pm GEICO has significantly increased the premium for my Umbrella insurance by 90% for the cars, no change for the house, and 60% for the 2nd million coverage. When I called and asked why, they said it has nothing to do with me personally but, instead, my state has seen significant increased claims and therefore GEICO has raised them for everyone.

GEICO has previously made no to small increases but never like this. Has anyone else experienced this?

What is the easiest way to check other umbrella quotes? What are the other major umbrella companies?
I just got my Geico renewal and experienced the same. I went from $330 to $469 for $2 mil. 70% increase on my car and 40% increase on the 2nd million. Geico told me the same thing about increases in my state. My policy was 3 years old and I had not had an increase.

I had found their rate significantly lower than other companies before, so now they are about the same, unfortunately.
The 19th hole
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Re: GEICO Umbrella: Significant Increase in Premium

Post by The 19th hole »

Another GEICO sufferer here. Bought a $1mil umbrella last year for the first time at (what I thought) was a high premium of $510, but I live in NYC, so accepted the higher price. Renewal showed up last month at $630.

Left GEICO for a company that would write the umbrella only ($521).
JBTX
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Re: GEICO Umbrella: Significant Increase in Premium

Post by JBTX »

I've had GEICO umbrella for years, and I've never seen a breakout between auto and home.

I think GEICO is tightening up their standards. We got a notice some months ago that they were terminating our policy, and their standards had changed that "standard rated" auto insurance customers would not longer be eligible for GEICO underwritten umbrella policies. But they did provide an RLI underwritten third party option sold through GEICO. It was only about 10% higher.

We dropped our daughter off auto and our rating went back up to "preferred". I called back to see if I could get GEICO underwritten umbrella policy but they said they had paused underwriting them, or something like that.
TravelforFun
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Re: GEICO Umbrella: Significant Increase in Premium

Post by TravelforFun »

The 19th hole wrote: Fri Aug 07, 2020 6:00 pm Another GEICO sufferer here. Bought a $1mil umbrella last year for the first time at (what I thought) was a high premium of $510, but I live in NYC, so accepted the higher price. Renewal showed up last month at $630.

Left GEICO for a company that would write the umbrella only ($521).
Which company you left Geico for if you don't mind me asking? I have a Geico umbrella policy too and would like to look around as well.

TravelforFun
Cpadave
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Re: GEICO Umbrella: Significant Increase in Premium

Post by Cpadave »

I got the new policy renewal from Geico with small increase in umbrella and property. I am staying with them as they have been pretty good in the past. I will see what happens next year. Some increase is expected each year.
The 19th hole
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Re: GEICO Umbrella: Significant Increase in Premium

Post by The 19th hole »

[/quote]
Which company you left Geico for if you don't mind me asking? I have a Geico umbrella policy too and would like to look around as well.

TravelforFun
[/quote]

RLI

They have a quote tool on the website that was accurate to the penny.
TravelforFun
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Re: GEICO Umbrella: Significant Increase in Premium

Post by TravelforFun »

The 19th hole wrote: Fri Aug 07, 2020 9:46 pm
Which company you left Geico for if you don't mind me asking? I have a Geico umbrella policy too and would like to look around as well.

TravelforFun
[/quote]

RLI

They have a quote tool on the website that was accurate to the penny.
[/quote]
Thanks. I just checked and RLI quote is slightly higher than my current GEICO premium.

TravelforFun
boglerdude
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Re: GEICO Umbrella: Significant Increase in Premium

Post by boglerdude »

Self-insure for what you can afford. Shop all companies every year or two. To make things easier shop around with 1M auto cuz that's enough liability. You can debate if you need umbrella later. Bundling and increasing deductible often doesnt save as much as you expect.
Northern Flicker
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Re: GEICO Umbrella: Significant Increase in Premium

Post by Northern Flicker »

creant wrote: Fri Aug 07, 2020 10:07 am
GEICO provides line item quotes of each component of the combined premium.

Are there any issues if one gets umbrella from a different company than auto and home?
Geico does not insure homes as far as I know. They are just brokering another company's insurance, so you already have more than one company in play.
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Stanczyk
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Re: GEICO Umbrella: Significant Increase in Premium

Post by Stanczyk »

They just sent me a renewal notice. It had been $99 for one million for one year. They increased it to $265!! More than doubling. I was concerned that it might increase based on some of your posts, so I was looking out for this, but this is worse than anyone of you have mentioned.

Any recommendations for companies to change to? (BTW I have been with Geico auto for 21 years, and no other company has ever come close to the rates that I pay with them.)
an_asker
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Re: GEICO Umbrella: Significant Increase in Premium

Post by an_asker »

Quick question to everyone on this thread: do you have rental property and which state are you in? I ask because we have GEICO but my quote was like ten times higher than the numbers I am seeing here. We do own rental property and live in FL, which is why I am curious about your situations...
MedSaver
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Re: GEICO Umbrella: Significant Increase in Premium

Post by MedSaver »

Mine went down from $590 to $573 for $3MM.
OnTrack2020
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Re: GEICO Umbrella: Significant Increase in Premium

Post by OnTrack2020 »

We pay a ridiculous amount for umbrella--over $800 for $1M. Time to look elsewhere.
OnTrack2020
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Re: GEICO Umbrella: Significant Increase in Premium

Post by OnTrack2020 »

We pay a ridiculous amount for umbrella--over $800 for $1M. I should add we do have young adult/teen drivers. I don't know if we can get it any lower.
MikeG62
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Re: GEICO Umbrella: Significant Increase in Premium

Post by MikeG62 »

creant wrote: Fri Aug 07, 2020 10:07 am
Are there any issues if one gets umbrella from a different company than auto and home?
The risk that an exposure slips between the cracks of the two policies. Having the same insurer for both would seem to eliminate this risk.

FWIW, I used to have a separate insurer for my umbrella. A few years ago I moved the umbrella to the same carrier as my home and auto.
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JonnyDVM
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Re: GEICO Umbrella: Significant Increase in Premium

Post by JonnyDVM »

You need to find an independent insurance agent to do all the legwork for you. I did that this year and it was soooo much easier than spending hours shopping around. Typically bundling home/auto/umbrella with one company will be the way to go. Coincidently the best option for me was Geico/Travelers.
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MDfan
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Re: GEICO Umbrella: Significant Increase in Premium

Post by MDfan »

OnTrack2020 wrote: Tue Oct 27, 2020 5:54 am We pay a ridiculous amount for umbrella--over $800 for $1M. I should add we do have young adult/teen drivers. I don't know if we can get it any lower.
We pay $523 for $1m. No teen drivers, but two older kids on policy - 20 and 26.
bluegill
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Re: GEICO Umbrella: Significant Increase in Premium

Post by bluegill »

2019 $245 Geico
2020 $245 Geico
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