The premium on my personal umbrella liability insurance policy increased halfway through the policy term. My insurance agent says it’s because I added a teen driver. This doesn’t seem right since our son is a good student and is covered by our auto insurance policy.
Umbrella coverage works hand in hand with your auto and home insurance. For example, if you are in an auto accident and badly injure or kill another, you can easily exhaust the bodily injury limits of your auto insurance policy. When that happens, your umbrella policy steps in and pays the extra expense you owe, up to the umbrella limit, which is usually $1 million.
As a group, teenagers have the greatest accident rate of any drivers, and auto accidents are principal cause of teen deaths. There are many reasons for these data: teens are easily distracted by electronic devices (mp3 players, cell phones, etc.), they are more inexperienced drivers and they usually engage in riskier behaviors. However, there are precautions you can take to keep your son safe behind the wheel. If your state doesn’t restrict cell phone use and texting while driving or impose curfews and passenger limits for young drivers, you can set limits on those activities yourself.
With time and a good driving record, your son’s auto and umbrella insurance premiums will decrease. Meanwhile, you can get a lower overall rate for your family’s insurance by buying your auto, home and umbrella coverage from the same insurance agency. Also ask about good student and other relevant discounts. Increasing your auto and/or home deductibles is another way to make insurance more affordable, but make sure that you can actually afford to pay these deductibles.
To learn more about Livonia umbrella liability insurance contact us at 800-220-5582 or get a free umbrella liability insurance quote.