Car Insurance, Umbrella Policies, Teen Drivers, Oh My!2 min read

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umbrellaHi Janine,
Can I bother you for a question about car insurance?

We are just raised the liability insurance on our cars to $100,000 per person and $300,000 per accident. Since we have two teen drivers and about $130,000 of equity in our house, we wonder if you would recommed an umbrella policy. Although an umbrella policy is only $200 or $300 more per year, it will actually double our annual premiums because it will require us to raise our liability to $250 per person and $500,000 per accident.

Thanks for your help,
Amber

Dear Amber:

I’m glad to help you, but this is really not my area of expertise. I’ve chatted it over with my husband, Brad and he and I recommend the following.

1) An umbrella policy is CHEAP insurance if someone sues you. I can’t remember are you in CA or VA? Or am I TOTALLY off? Anyhow, depending upon where you live and how suit (spelling?) happy folks are…you make the call.

2) Shop around for umbrella policies. Brad and I were both surprised that you would have your premiums go up on your car insurance while getting an umbrella policy too? Weird.

We have had umbrella policies for years and with three different companies and have not had that “required” from us. (the increase in premiums that is.) Now, we had to increase our deductibles, but not the premiums for the car insurance. Okay?

Again, we are NOT experts. This is just advice from one friend to another and I wish you much luck as you insure your family. It truly is a crazy reality when you’re dealing with the world of insurance, but it is totally worth it with your first financial crisis! Right? Hang in there and know I’m cheering for you!

Wishing you and yours much Abundance,

Janine

P.S. If any of you wonderful readers have additional pointers or advice for Amber, please post your comments. What sort of experiences have you folks had with umbrella policies? Thanks!

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