Question about umbrella insurance

[ncbill]

When your kids reach 18. Title the car they drive in their name and have them insure it well. Not on your policy.

Then, take out an umbrella policy to cover your net worth and sleep well.

I can't get over the trouble folks on this forum spend about a couple hundred bucks over an umbrella policy. You're all loaded or you're not worried about it in the first place. Get the kids on their own and get a big umbrella for a couple hundred bucks.....

I doubt that works as liability avoidance unless your 18 year old really is fully independent.

Wouldn't have worked for us...all the kids were claimed as dependents until after they finished college.

Fortunately, on my umbrella policy it's only a flat fee for any number of drivers under age 25.

Though for auto here the state only permits higher premiums for the first three years for any new driver, regardless of what age they started driving.

So we had all the kids licensed at age 16, then once they turned 19 we were paying regular rates for them.

 

[JoeWras]

When I was in college, I had to sign a form saying I wouldn't drive, even if I visited home. My mere living existence was cause to raise my parents' auto rates even though I was hundreds of miles away without any access to a vehicle. By swearing I wouldn't drive a car, their rates dropped significantly.

I have no idea what would have happened if I did drive and get in an accident. I didn't drive and respected what I signed. It actually was one of the first tastes I had of being an adult and taking on legal responsibility.

 

[COcheesehead]

For those with an umbrella policy, does anyone have a standalone policy? Or is it tied to your auto or home?

Mine is a stand alone, but in order to obtain it, I had to raise the liability limit on my auto.

 

[bobandsherry]

Mine is a stand alone, but in order to obtain it, I had to raise the liability limit on my auto.

What company are you with for your umbrella? Thanks

 

[COcheesehead]

What company are you with for your umbrella? Thanks

I lied. When I looked it up, I see it’s attached to my homeowners policy at Progressive.

 

[bobandsherry]

I lied. When I looked it up, I see it’s attached to my homeowners policy at Progressive.

Ah, ok thanks

 

[COcheesehead]

Ah, ok thanks

I used to have a stand alone and had it through these guys.

https://www.personalumbrella.com/

 

[Buckeye]

Mine is a stand alone, but in order to obtain it, I had to raise the liability limit on my auto.

Raising our auto insurance liability and property damage limits to the required level was a good chunk of change. At least as much as the umbrella policy annual premium.

 

[COcheesehead]

Raising our auto insurance liability and property damage limits to the required level was a good chunk of change. At least as much as the umbrella policy annual premium.

Still would rather pay hundreds to safeguard millions.

 

[Stormy Kromer]

When your kids reach 18. Title the car they drive in their name and have them insure it well. Not on your policy.

Then, take out an umbrella policy to cover your net worth and sleep well.

I can't get over the trouble folks on this forum spend about a couple hundred bucks over an umbrella policy. You're all loaded or you're not worried about it in the first place. Get the kids on their own and get a big umbrella for a couple hundred bucks.....

We are in attorney territory here folks...waaaaay too much to lose if you go wrong. No room for advise.

Not what some free guy told you on the internet. Including me.
See your attorney, then shop for insurance.

I have a $3 million umbrella that costs me $365 a year. You can find one too. Stop and think everyone. $385 a year for $3 million PLUS defense fore liability insurance on your home and auto liability exposure. Just do it.

 

[pb4uski]

I will also throw in the old rule of thumb. The more you have, the more the insurance company has to lose, the more they will defend you.

Exactly. My insurer has over 2 million reasons to provide me with a vigorous defense for any claims against me.

 

[JoeWras]

We are in attorney territory here folks...waaaaay too much to lose if you go wrong. No room for advise.

Not what some free guy told you on the internet. Including me.
See your attorney, then shop for insurance.

I have a $3 million umbrella that costs me $365 a year. You can find one too. Stop and think everyone. $385 a year for $3 million PLUS defense fore liability insurance on your home and auto liability exposure. Just do it.

Not only that, the laws differ in each state.

SGOTI's advise about titling cars and this and that may be invalid in another state.

 

[Buckeye]

Still would rather pay hundreds to safeguard millions.

+1

 

[F.I.R.E User]

Anyone use minimum liability in Texas? My friend works for GEICO and says most drivers have ML.

What assets are protected in TX in case insurance doesn’t cover all? How often in an accident exceed ML? Is there wage garnishment? I think lawyer is provided free of cost.

 

[Dash man]

I think lawyer is provided free of cost.

Would you want a lawyer provided free of cost? Not me!

 

[PatrickA5]

Anyone use minimum liability in Texas? My friend works for GEICO and says most drivers have ML.

I imagine a lot of people buy the minimum. It doesn't go very far. Doesn't take much of an accident to exceed most states minimums.

 

[F.I.R.E User]

Would you want a lawyer provided free of cost? Not me!

What happens if you are covered? No lawyers are involved?

I imagine a lot of people buy the minimum. It doesn't go very far. Doesn't take much of an accident to exceed most states minimums.

Is there a source where we can see what settlements are done if the insurer is not covered?

 

[Dash man]

What happens if you are covered? No lawyers are involved?

Lawyers will be involved. But with insufficient coverage they will just settle for what insurance covers and you’ll be responsible for the rest.

 

[F.I.R.E User]

Lawyers will be involved. But with insufficient coverage they will just settle for what insurance covers and you’ll be responsible for the rest.

Trying to find real life stories on amount uncovered. The end result that is.

 

[Stormy Kromer]

Trying to find real life stories on amount uncovered. The end result that is.

I know a guy who lost his farm worth about $2 million, in an auto accident. He had $300,000 of auto insurance. He crippled a guy. The victim's lawyer was a friend of mine and said "Make sure you have enough liability insurance to cover what you're worth". The driver didn't and the judge held him accountable. Scared me enough to pay $300 to buy a $3,000,000 Umbrella.

 

[COcheesehead]

I have a friend who hit a pedestrian with her car. Victim’s lawyer sued for more than the auto policy covers. Umbrella kicked in and covered it. FYI, since she had a claim against the umbrella, she cannot get umbrella coverage for X years. I can’t remember the X timeframe, but if you have a claim, your policy may be one and done.

 

[F.I.R.E User]

I know a guy who lost his farm worth about $2 million, in an auto accident. He had $300,000 of auto insurance. He crippled a guy. The victim's lawyer was a friend of mine and said "Make sure you have enough liability insurance to cover what you're worth". The driver didn't and the judge held him accountable. Scared me enough to pay $300 to buy a $3,000,000 Umbrella.

Aren’t accounts like 401k and Roth IRA protected? What happens if you don’t want to pay?

I have a friend who hit a pedestrian with her car. Victim’s lawyer sued for more than the auto policy covers. Umbrella kicked in and covered it. FYI, since she had a claim against the umbrella, she cannot get umbrella coverage for X years. I can’t remember the X timeframe, but if you have a claim, your policy may be one and done.

Can’t get Umbrella for lifetime?

 

[COcheesehead]

Aren’t accounts like 401k and Roth IRA protected? What happens if you don’t want to pay?



Can’t get Umbrella for lifetime?

No it’s not a lifetime. I want to say three years if you have a claim.

Regarding your question about losing a claim. They will take whatever they can. I know someone who lost personal assets including clothes.

 

[F.I.R.E User]

I have over $500k but less than $600k. They are in my 401k, Roth IRA, taxable and bank account.

I have always had ML in Texas. 30/60/25. I don’t drive a lot because I am WFM. Like less than 2k a year.

What do you all suggest I get? I am a very frugal person so don’t want to spend too much on insurance.

 

[Dash man]

I have over $500k but less than $600k. They are in my 401k, Roth IRA, taxable and bank account.

I have always had ML in Texas. 30/60/25. I don’t drive a lot because I am WFM. Like less than 2k a year.

What do you all suggest I get? I am a very frugal person so don’t want to spend too much on insurance.

Someone getting injured on your property could also sue. It’s not always an auto accident.
Umbrella insurance is cheap insurance. But you’ll have to increase your auto liability up to whatever they require, which can be anything from $300k to a million.
Shop around and see what quotes you get. Not a thing to be too frugal over.