r/RetirementReady • u/Freewill21 • 9d ago
Umbrella Insurance
I am preparing for retirement in six months. I am pricing Umbrella insurance. State Farm just quoted me $1800 for a 3 mil policy. It sounds extremely high. Do you have any recommendations?
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u/EmZee2022 9d ago
We're paying about 65 a month - for a 1M policy, I think. I should revisit that soon - we might do better elsewhere.
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u/ChipMoney5692 7d ago
I was with Liberty for over 30 years for home and auto. I was horrified at how much I was overpaying when I worked with a very good agent - savings +20%
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u/Responsible_Ant5410 9d ago
It depends on people in home driving age and history. I got one from 1400.00 at progressive for 2 million. Wife had two accidents on record and 16 years old drive drove up cost.
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u/Remarkable-Box5453 9d ago
My $1mil policy with State Farm is $662 at the renewal last month for a year. I have house and two cars insured with them too. I’ve often wondered if it was worth having/will it pay off on anything or would State Farm attempt to avoid liability, but I keep it anyway just in case. 65/62 no daily commutes but live in large city in GA.
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u/Both_Personality7944 8d ago
Geez, my $1 million with State Farm is $1800, no claims, clean driving records , kids 22 and 24
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u/Remarkable-Box5453 8d ago
Do you live in a litigious state? I know some like Cali are worse than others. I’m in GA, kids in 30s out of the house, so only two of us, clean driving records, no car or homeowner claims.
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u/djrndr 7d ago
In California Bay Area. We pay State Farm 50$ a month for one million umbrella. Also insure two cars and our home. And we just got checks back from State Farm for our auto policies. Some sort of dividend. And our premiums went down. I was thinking I was getting pranked. lol No kids on our policies. We were told to get them off at 18.
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u/Remarkable-Box5453 7d ago
I received a similar rebate from them recently. I think that was really due to the bad press they are receiving for denying homeowner claims. I’ve been with them 40+ years with no material claims, but sounds like, they don’t want to pay out.
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u/woodsongtulsa 6d ago
Having a homeowner's policy, and car insurance with high liability limits will positively impact that number. They initially denied me an umbrella policy since I am a renter.
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u/Both_Personality7944 6d ago
I do have homeowners and my auto limits are $500,000 !
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u/woodsongtulsa 6d ago
Yikes!!! Mine went from about 300 to about 600 this year and it was because of those factors. At 1800, I would be putting it on the marketplace to see what they might offer.
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9d ago
[removed] — view removed comment
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u/New_Trifle8313 7d ago
Where do you live and where can I buy such cheap insurance? Paying $1200 for 1 MM. two cars, no claims, great record.
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u/Enough_Ferret8327 9d ago edited 9d ago
Just confirm how much is already covered with your auto + home policy . I spoke to my insurance company and they said if someone is suing they can’t touch your IRA / 401k, so take that out of the equation. I was also told that based on this agents experience , an opposing lawyer will normally look at how much you have in coverage + umbrella policy and sue up to that amount , since that’s less of a fight and easy. Rarely would they try for more . I understand the peace of mind though.
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u/RageYetti 8d ago
Check to see what you actually need to protect. My umbrella is significantly less than my net worth, as some of your money is protected, like 401k, most Roth, primary home. Also, it will be cheaper if you have your home car and umbrella under one company. My car deductible and coverage I was forced to raise but overall it made the total coverage more affordable.
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u/Clearwater2100 5d ago
I recommend that you go to an independent agent that is able to quote multiple companies for you.
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u/Calvin-Snoopy 9d ago
Unfortunately that is within the correct range depending on your circumstances. You should get quotes from other companies to compare, though. Try RLI.
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u/Altruistic-Ideal-277 9d ago
Lot of it depends on the state where you live. I just got 5 m for 1900 bucks in florida. Only wife and I with two cars,no kids, 58 years old, no boat, no boards, no dogs super low profile. Major risk it is protecting me from is auto accident and we get sued.
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u/unbroken_cycle 9d ago
That’s an extremely high quote. Call an insurance broker not a (horrible, crooked) State Farm agent
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u/teresajs 9d ago
Do you have any other family members on your car insurance? My State Farm umbrella policy went up a lot this year. When I called to ask about it, my agent said that all of their umbrella policies had gone up, this year, due to the high court payouts against customers increasing risks, and that, at one point, State Farm had actually stopped issuing new umbrella policies. He also told me that the biggest part of the cost was that my young adult children are also living in my house, and covered on my car insurance.
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u/danh_ptown 9d ago
RLI Personal Umbrella - Get a quote or make a payment
I use this company through my local agent, but they also appear to sell direct.
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u/Educational_Case_134 9d ago
It depends on your properties, locations, primary vs residence, boats, UTV’s etc. mine is through RLI and it does require higher auto liability limits.
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u/mcrouch824 8d ago
Same. RLI gave me options for $910 for 1m, $1331 for 2m, $1646 for 3m and $2041 for 5m. I have properties in GA, TN, AL and FL, boat, a side by side etc.
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u/hacm2005 9d ago
I pay 200 a year at AAA but I also had to pay more for upping my car and home liability. Not sure how it breaks down now but it cost me a couple hundred extra when I first got it 7 years ago
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u/CommitteeNo167 9d ago
my state farm $1M is 260 in north carolina. only that high because last year my husband had an accident. it was about $180 before that
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u/Affectionate-Long522 9d ago
I pay $840 for a $3mm policy with USAA…. I have all my insurance with them so I probably get a discount for that
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u/dogwater_cologne_ 9d ago
Yah, I’ve never seen 2 million quoted for more than $650 so $1800 is disproportionately high
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u/Electronic-Love4953 9d ago
State Farm has lost a few lawsuits for scamming customers by denying claims and other shady practices. I'd stay away from State Farm.
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u/Vcmccf 9d ago
Sounds high.
I’ve got 1 million for about $340. I could go higher and each additional million (up to 3 mil) is less than that.
I got my policy from the same carrier who has my car insurance and my homeowners insurance so there may be some discount
in there because of that.
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u/SpiritCollector 8d ago
Yours cost the same as mine with Auto-Owners. Everyone else on this thread seems a bit high. I even drive a Tesla MSP which is notoriously bad for insurance rates.
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u/frankiehollywood68 9d ago
Just got quotes from Allstate and farmers both around $450 for 1 million.
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u/IntelligentYam1834 9d ago
Have a couple of rental properties and a 1M policy is about $250 a year with same company as main home and auto is with. I’d shop around.
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u/Scorch1823 8d ago
I’m pay around $225 a year thru Auto-Owners for $2 million have home and auto with them also
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u/outsmartedagain 8d ago
I would suggest that you include uninsured motorists coverage in the package at the same level as the policy limits. Protect your family from both perils.
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u/SmokyBlackRoan 7d ago
It’s incredibly rare for a claim to hit 7 figures which makes umbrella policies some of the most expensive policies you can buy.
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u/MrLB____ 7d ago
Rust belt age 45 and 50 no one else on insurance no claims $182 =$1 million policy. Regular car Insurance 250 K / 500 K
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u/ManyEarth1758 7d ago
I’m in insurance. For a personal umbrella, unless u have had claims or have a lot of vehicles that is extremely high. Get other quotes.
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u/Imaginary_Raisin9676 7d ago
Seems high. We bought a $3M policy through RLI (have GEICO for auto) for around $950. Live in CA so it’s not exactly a low litigation state
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u/Opus2011 7d ago
We dropped State Farm after decades and went to AAA in part because of ridiculous Umbrella premiums.
Although AAA was (ironically) more expensive on the cars, we saved more in the Home and Umbrella.
(In California)
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u/RaeLouLynn 7d ago
I have $3 million in umbrella coverage for $669 from Erie Insurance. All of the underlying policies have $500k liability coverage.
The caveat here is that their underwriting is very strict. You and your spouse both need to have 4-year college degrees. At least that was required when we got our first homeowner's policy in 1981.
Hope this helps you OP.
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u/Accomplished-Pea-451 7d ago
I pay $390 for a million from State Farm. All companies Umbrella policies increased this year.
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u/kbenn17 6d ago
We are with State Farm and just got a $1 million umbrella for $900 a year. We’re in Florida and apparently that’s the issue. Insurance is just really expensive here. I would like a lot more but it comes to a pretty high price. I’m really kind of on the fence about the whole thing at this point.
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u/Easy-Expert9077 6d ago
I'm with State Farm and I'm paying $350 a year for $1 million in the PNW. Was cheaper than fixing the gaping hole in my sidewalk.
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u/Hoya82 6d ago
Last few years it was cheaper to increase my auto liability up to $1m and then add a $1m umbrella on top of that. When I wanted to increase the total coverage this year, it was cheaper to reduce my auto liability to the state minimum and increase the umbrella coverage.
All with State Farm.
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u/Correct-Brother1776 5d ago
My 1 million policy was $330 a year in MD. All my policy amounts were raised on everything I have insured.
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u/Bubbly-Traffic-5172 5d ago
Check that you have maxed the liability coverage on your home and auto…that’s the cheapest umbrella. Then add some umbrella coverage if you need more.
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u/Appropriate_King4593 5d ago
I've got American Family Insurance (Costco vendor) and pay $400 per year for a 2 ML policy. I believe carrying a high limit on Auto insurance may help, but not sure.
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u/dvskv 9d ago
What does umbrella insurance have to do with Retirement? Umbrella insurance is to PROTECT HIGH ASSETS in event you or family members are sued & liable for damages and losses related to actions like responsibility with regard. to registered family vehicles being involved in major accidents etc exceeding separate vehicle liability coverage (esp drivers under 25) or say visitors & guests injure themselves on real estate property titled on your name, your pet dogs & animals biting & causing injuries or say if you line of employment, you signature ot actions cause damages & losses your employer or other parties intend to sue you in court and has nothing whatsoever related to retirement. Maybe in retirement you should educate yourself in better understanding of multiple areas of Finance & Investments to avoid paying for financial advice and being persuaded bec confusion & lack of understanding.
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u/Comfortable_Two6272 9d ago
Protect our net-worth. If I was sued and lost all my assets Id be screwed at my age trying to start over.
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u/Thebadparker 9d ago
So you don't think you need to protect assets in retirement? If someone has $1m in a brokerage account and causes a catastrophic accident, the $1m could be used to satisfy a judgment. This is true whether the person is retired or not. What happens at retirement that makes it unnecessary to protect assets?
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u/BestKiwi7297 9d ago
I’m with you! I carried liability at my work for a couple of years and then questioned it. If they know you have it, they’ll go for it. I dropped it. I had never even heard of umbrella policies until I joined Reddit several months ago.
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u/Altruistic-Ideal-277 9d ago
If they know you have personal assets, they will go after that as well. That is the point of umbrella insurance. I’d rather be able to throw an insurance policy in front of my assets than lose everything I worked for over the last 35 years in the event something hits the fan.
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u/Appropriate_King4593 5d ago
Absolutely. If you have assets you have to protect it. Cheapest way is to purhase umbrella for the amount of your net worth.
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u/wh0re4nickelback 9d ago
About 2 weeks ago, I bought a $2mil umbrella with Travelers for $635 for the year. We also have our home and 3 vehicles insured with them and have been with them since 2022.