Big umbrella increase: anyone else's risen dramatically?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
User avatar
BogleFanGal
Posts: 204
Joined: Mon Mar 20, 2017 6:59 pm

Big umbrella increase: anyone else's risen dramatically?

Post by BogleFanGal » Thu Mar 01, 2018 7:04 pm

I paid about $400 for a 1 mil policy last year. (lots of lawsuits in my state). Now I get the renewal and it's gone up nearly 40%. I haven't made any claims - nor any on auto/home policies for almost 2 decades. No pool, no dog, no kids, no rentals, no trampoline...drive two old sedans and we both have excellent driving records. Basically as low risk as you can get.

I've tried shopping around w/no luck. I hate to drop it, but to me, this seems like a crazy increase in just 1 year. Would you keep it and just pay the higher premium? What if it went up another 30-40% next year? At what point does it cease to be reasonable protection?

(Please don't brag about the $2 million policy you have for $150. LOL. I know most people pay far less than I do. But I was ok with that until this crazy increase.)

User avatar
randomizer
Posts: 1531
Joined: Sun Jul 06, 2014 3:46 pm

Re: Big umbrella increase: anyone else's risen dramatically?

Post by randomizer » Thu Mar 01, 2018 7:36 pm

Insurance. You will never find a more wretched hive of scum and villainy.
87.5:12.5, EM tilt — HODL the course!

MtnBiker
Posts: 154
Joined: Sun Nov 16, 2014 4:43 pm

Re: Big umbrella increase: anyone else's risen dramatically?

Post by MtnBiker » Thu Mar 01, 2018 8:07 pm

We had a 20% increase in 2009. None since.

gclancer
Posts: 536
Joined: Sat Apr 27, 2013 10:34 am

Re: Big umbrella increase: anyone else's risen dramatically?

Post by gclancer » Thu Mar 01, 2018 8:23 pm

Perhaps your insurer is price optimizing your annual premium, it may pay to shop your policies around. https://www.npr.org/2015/05/08/40359823 ... n-cost-you

Nicolas
Posts: 1122
Joined: Wed Aug 22, 2012 7:41 am

Re: Big umbrella increase: anyone else's risen dramatically?

Post by Nicolas » Thu Mar 01, 2018 8:26 pm

No dramatic increase.
Last edited by Nicolas on Sun Mar 25, 2018 9:22 am, edited 2 times in total.

truenorth418
Posts: 406
Joined: Wed Dec 19, 2012 7:38 am

Re: Big umbrella increase: anyone else's risen dramatically?

Post by truenorth418 » Thu Mar 01, 2018 8:29 pm

No I did not see a big increase this year. A few dollars increase, not unreasonable. I use GEICO.

runner3081
Posts: 1674
Joined: Mon Aug 22, 2016 3:22 pm

Re: Big umbrella increase: anyone else's risen dramatically?

Post by runner3081 » Thu Mar 01, 2018 8:50 pm

40+% Increase from 2017 to 2018.

Zero claims, tickets, accidents to cause it.

Went from $160 to $230.

$1m policy.

Good Listener
Posts: 613
Joined: Wed Dec 30, 2015 5:24 pm

Re: Big umbrella increase: anyone else's risen dramatically?

Post by Good Listener » Thu Mar 01, 2018 8:59 pm

I have GEICO. My premiums have not changed in years.

MikeG62
Posts: 1171
Joined: Tue Nov 15, 2016 3:20 pm
Location: New Jersey

Re: Big umbrella increase: anyone else's risen dramatically?

Post by MikeG62 » Thu Mar 01, 2018 9:07 pm

I’ve yet to see a large annual increase in my umbrella policy premium outside of when I increased the size of the policy.
Real Knowledge Comes Only From Experience

User avatar
EyeYield
Posts: 647
Joined: Tue Sep 18, 2012 6:43 pm
Location: Extremistan

Re: Big umbrella increase: anyone else's risen dramatically?

Post by EyeYield » Thu Mar 01, 2018 9:08 pm

Just paid my annual premium in Jan - same as last year. HCOL area, clean driving record.
"The stock market is a giant distraction from the business of investing." - Jack Bogle

anoop
Posts: 694
Joined: Tue Mar 04, 2014 1:33 am

Re: Big umbrella increase: anyone else's risen dramatically?

Post by anoop » Thu Mar 01, 2018 9:16 pm

This is crazy. Maybe reflects the heavy payouts the industry is having to make and the cost of healthcare for their employees.

From what I'm hearing about increases in all premiums--auto, house, and now umbrella--I'm not looking forward to receiving my renewal notices later in the year.

And to answer the OP's question--definitely don't drop it completely. Increase your deductible if you have to. The whole point of insurance is avoid financial ruin, so unless you have $10-100M and can afford to self-insure, I would keep it.

ji.isaacs
Posts: 101
Joined: Sat May 24, 2014 3:19 pm

Re: Big umbrella increase: anyone else's risen dramatically?

Post by ji.isaacs » Fri Mar 02, 2018 7:59 am

You will see a dramatic increase in premium if anyone in your household reached age 70 before the policy renewed.

I believe age of insured(s) is one of the questions on the annual renewal form.

User avatar
mhc
Posts: 3773
Joined: Mon Apr 04, 2011 10:18 pm
Location: NoCo

Re: Big umbrella increase: anyone else's risen dramatically?

Post by mhc » Fri Mar 02, 2018 9:43 am

I just renewed mine, and it went down 15%. We just replaced a 12 year old car with a new one. I don't know if that helped.

I would shop around. If you feel you need it, then what is $400 or $560 compared to $1 million in protection?

mouses
Posts: 3819
Joined: Sat Oct 24, 2015 12:24 am

Re: Big umbrella increase: anyone else's risen dramatically?

Post by mouses » Fri Mar 02, 2018 9:54 am

ji.isaacs wrote:
Fri Mar 02, 2018 7:59 am
You will see a dramatic increase in premium if anyone in your household reached age 70 before the policy renewed.

I believe age of insured(s) is one of the questions on the annual renewal form.
My $5Mil umbrella from Amica has been pretty constant since I got it in 2010 $546 to now $622. Two old cars, a house, vacant lots, one adult, drive about 6000 miles a year (guess.) I was in my 60s when I got it originally, now I'm in my mid 70s.

Certainly didn't see any drastic increase when I crossed the 70 mark. I also have their auto insurance; it actually dropped the year I turned seventy.

User avatar
rustymutt
Posts: 3732
Joined: Sat Mar 07, 2009 12:03 pm
Location: Oklahoma

Re: Big umbrella increase: anyone else's risen dramatically?

Post by rustymutt » Fri Mar 02, 2018 9:56 am

randomizer wrote:
Thu Mar 01, 2018 7:36 pm
Insurance. You will never find a more wretched hive of scum and villainy.
As an Insurance agent year ago in Kansas, I have to agree. They are without morals, when it comes to their profits.

If my policy goes up that much, it's like they want us to drop them. So be it.
I'm amazed at the wealth of Knowledge others gather, and share over a lifetime of learning. The mind is truly unique. It's nice when we use it!

harmony
Posts: 494
Joined: Sun Nov 24, 2013 1:35 am

Re: Big umbrella increase: anyone else's risen dramatically?

Post by harmony » Fri Mar 02, 2018 10:11 am

Does a son or daughter keep his/her own car (which they insure themselves) garaged on your property? This fine distinction made a difference on our umbrella premium. Our umbrella policy's fine print includes extended liability coverage for all family members who reside with us, evidenced by their keeping a car on our property. We thought our temporarily higher premium was because we had 3 drivers, but when the third driver went to school out-of-state and left his car in our garage, our PLUP premium still remained high. When he took his car with him out-of-state, the premium finally went back to normal. (During that time one of us turned 70.)

User avatar
BogleFanGal
Posts: 204
Joined: Mon Mar 20, 2017 6:59 pm

Re: Big umbrella increase: anyone else's risen dramatically?

Post by BogleFanGal » Fri Mar 02, 2018 11:17 am

harmony wrote:
Fri Mar 02, 2018 10:11 am
Does a son or daughter keep his/her own car (which they insure themselves) garaged on your property?
Thanks, but no kids...just the two of us. Two boring sedans. No tickets or accidents.

LarryAllen
Posts: 1122
Joined: Fri Apr 22, 2016 9:41 am
Location: State of Confusion

Re: Big umbrella increase: anyone else's risen dramatically?

Post by LarryAllen » Fri Mar 02, 2018 11:21 am

I wouldn't think about the price increase or what others say they are paying. An umbrella is to protect YOU from a financially devastating lawsuit which can happen in the most unlikely of situations which is why the premiums are so cheap. To me the only question is why you only have $1m of coverage. In my mind it's not that unheard of for lawsuit to exceed $1m. I would have at least $2m personally.

User avatar
BogleFanGal
Posts: 204
Joined: Mon Mar 20, 2017 6:59 pm

Re: Big umbrella increase: anyone else's risen dramatically?

Post by BogleFanGal » Fri Mar 02, 2018 11:31 am

ji.isaacs wrote:
Fri Mar 02, 2018 7:59 am
You will see a dramatic increase in premium if anyone in your household reached age 70 before the policy renewed.
No significant age changes - early '50s. I know the extra $100-200 won't break me, but it's incredibly aggravating, on top of 30-35% auto policy increases coming from what I've been reading in local papers. We already pay the highest home, auto and umbrella rates in the nation.

Shopped around: nothing lower. Thank you to earlier poster for suggestion on deductibles - I will ask about that, but don't remember choosing any deductible levels on my umbrella when I got it last year. Seemed like a set policy.

Can't move out of state - so guess I'm stuck. :annoyed So frustrating to live a low-risk, responsible life and pay totally unreasonable rate hikes due to so many uninsured drivers, insurance scams, and lawsuits in our region.

miles monroe
Posts: 1203
Joined: Mon Jan 20, 2014 12:14 pm

Re: Big umbrella increase: anyone else's risen dramatically?

Post by miles monroe » Fri Mar 02, 2018 11:34 am

$1 million policy; went $150 to $167 (just paid it). no change in personal circumstances.

ji.isaacs
Posts: 101
Joined: Sat May 24, 2014 3:19 pm

Re: Big umbrella increase: anyone else's risen dramatically?

Post by ji.isaacs » Mon Mar 05, 2018 12:19 pm

I realized the big increase after age 70 is due to the addition of under/uninsured motorist to the umbrella. If you have a plain vanilla umbrella policy without the extra insurance then age is probably a non-factor.

User avatar
Steelersfan
Posts: 3537
Joined: Thu Jun 19, 2008 8:47 pm

Re: Big umbrella increase: anyone else's risen dramatically?

Post by Steelersfan » Mon Mar 05, 2018 1:17 pm

ji.isaacs wrote:
Fri Mar 02, 2018 7:59 am
You will see a dramatic increase in premium if anyone in your household reached age 70 before the policy renewed.

I believe age of insured(s) is one of the questions on the annual renewal form.
$1mm policy with Erie Insurance for single person household. $128 a year - no change from last year even though I turned 70 before this year's premium.

Lots of factors go into policy increases, which can vary by company and location.

ncbill
Posts: 361
Joined: Sun Jul 06, 2008 4:03 pm

Re: Big umbrella increase: anyone else's risen dramatically?

Post by ncbill » Mon Mar 05, 2018 3:05 pm

ji.isaacs wrote:
Mon Mar 05, 2018 12:19 pm
I realized the big increase after age 70 is due to the addition of under/uninsured motorist to the umbrella. If you have a plain vanilla umbrella policy without the extra insurance then age is probably a non-factor.
Isn't it cheaper to crank up combined UIUM coverage under the auto policy?

The (stand-alone) umbrella policies I looked at online were much more expensive for UIUM coverage than my auto policy.

ji.isaacs
Posts: 101
Joined: Sat May 24, 2014 3:19 pm

Re: Big umbrella increase: anyone else's risen dramatically?

Post by ji.isaacs » Fri Mar 09, 2018 10:46 am

ncbill wrote:
Mon Mar 05, 2018 3:05 pm
ji.isaacs wrote:
Mon Mar 05, 2018 12:19 pm
I realized the big increase after age 70 is due to the addition of under/uninsured motorist to the umbrella. If you have a plain vanilla umbrella policy without the extra insurance then age is probably a non-factor.
Isn't it cheaper to crank up combined UIUM coverage under the auto policy?

The (stand-alone) umbrella policies I looked at online were much more expensive for UIUM coverage than my auto policy.
I don't know the answer to your question as I didn't explore that option. I'd have to explore whether or not that approach would provide the same company lawyer protection of an umbrella.

My 1M umbrella coverage with un/underinsured motorist was $422 for the latest renewal. Of course there are other factors which influence the cost. I have a large breed dog on "the list" which I'm sure affected the cost.

User avatar
Ice-9
Posts: 1326
Joined: Wed Oct 15, 2008 12:40 pm
Location: Rockville, MD

Re: Big umbrella increase: anyone else's risen dramatically?

Post by Ice-9 » Fri Mar 09, 2018 11:06 am

OP, did you happen to freeze your credit in the last year, perhaps in response to the Experian breach?

I happened to notice that my auto insurance had bumped up three years ago when we had implemented credit freezes. I inquired with my Erie agent, and he told me in fact the credit freeze was likely to blame because when Erie attempts to pull credit and receives a "no hit" they cannot apply a discount for good credit. I cannot speak to whether the credit freeze affected my umbrella policy because I only got the umbrella shortly after implementing the credit freeze, and it has not changed since.

User avatar
Rob5TCP
Posts: 3164
Joined: Tue Jun 05, 2007 7:34 pm
Location: New York, NY

Re: Big umbrella increase: anyone else's risen dramatically?

Post by Rob5TCP » Fri Mar 09, 2018 11:34 am

Delete Duplicate
Last edited by Rob5TCP on Fri Mar 09, 2018 11:39 am, edited 1 time in total.

User avatar
Rob5TCP
Posts: 3164
Joined: Tue Jun 05, 2007 7:34 pm
Location: New York, NY

Re: Big umbrella increase: anyone else's risen dramatically?

Post by Rob5TCP » Fri Mar 09, 2018 11:38 am

Good Listener wrote:
Thu Mar 01, 2018 8:59 pm
I have GEICO. My premiums have not changed in years.
Prior to the last 2 years, my GEICO policy had changed about 6% in 5/6 years.

The last 2 years, my umbrella (2M) went from around $350 to almost $500 last month.
Not quite a 50% increase. When I called, I was told it was based on the number of lawsuits/judgements in my area.
The "good" news is that at my next renewal there should be a minimal or no increase.

(This covers my rental apt I live in; condo I rent out, plus my 1 automobile).

Post Reply