Car Insurance VS Umbrella Policy...

Might seem like a weird subject but while car shopping, I called my guy for an insurance quote today. Mind you, I am currently paying $900 a year for liability...His quote for my new 2007 car was $1800 a year. Seemed REALLY high to me being that I have no points on my license and no accidents (knock on wood). So I did what I always do, I called my mom to see what she pays...when she told me $400 every 6 mos, I almost died!

So I figured, WTH, I'll call Geico and get a quote. Well they quoted me $822 for the YEAR. Full coverage, 25/50/25. My umbrella has me at 100/300/100 to "protect my home"

Do I need this? I mean, spending more than double on the car insurance seems INSANE to me, but god forbid I have a serious accident, I'm scared of someone suing me and going after our house. Thoughts?

What do you have?

Re: Car Insurance VS Umbrella Policy...

get the umbrella. we have our car, home and umbrella policies with geico. they were the best on price and coverage. we have a $2M umbrella with them. god forbid you get into an accident with someone, even if its their fault, they may still come after you for everything. so best to have the umbrella as a stop gap.

Re: Car Insurance VS Umbrella Policy...

we also have the umbrella with geico... better to be safe then sorry

Re: Car Insurance VS Umbrella Policy...

get an umbrella. i work in auto/homeowners insurance. 25/50 is the minimum that NYS requires, that you must carry to register your vehicle . I would recommend at LEAST 100/300. but if you are a homeowner, i would really get 250/500 and get a $1mill umbrella. its really not that $$ and you will be fully protected. the umbrella also carries over onto your homeowners insurance. for instance,if someone were to get hurt or slip and fall at your house.. the umbrella would cover that also under your liability limits.

Re: Car Insurance VS Umbrella Policy...

I have an umbrella currently with Liberty Mutual. I juuuuuuuuuust got the policy in July. Can I dump them already?

Re: Car Insurance VS Umbrella Policy...

we are doing the umbrella as well and our rates went up a few hundred, well worth it in my mind god forbid that we get sued.

Re: Car Insurance VS Umbrella Policy...

25/50/25 is horrible coverage. God forbid you are in an accident, and you have over 25k in property damage or someone gets hurt in the car and sues you for over 25k your in trouble. I do not reccomend lowering bodily injury limits to anything under 100/300/100.

Saving money is nice, but if you get in an accident you want to be covered properly, especially if you own a home, you could lose everything if your limits arn't high enough to cover a lawsuit.

Re: Car Insurance VS Umbrella Policy...

Thanks ladies, I called Geico back and got a revised quote for 100/300/100 and it only came up 20 bucks. Then I asked for 250/500/250 and it came up $20 more....

So for now I'm going to do that high level 250/500/250 and then we will review our homeowners policy together after the new year to do the umbrella.

ETA, I lied. Once they ran DH's license it more than doubled and now its even higher than it would be with my current insurance. I COULD KILL HIM!!!!!!!!!

Message edited 12/30/2009 10:25:15 AM.