Umbrella policy renewal premium increase is 122%

[Al18]

My $2M PUP policy increased 52%, because I had to switch from Allstate to RLI

 

[COcheesehead]

My umbrella dropped, but my homeowners and auto went up. It was just how they applied their bundled discount.

 

[BeWealthy]

Well, it finally hit Colorado. My State Farm umbrella policy rate increased by 83%. Yikes!

 

[1RichCrook]

Just got ours in NV. 3m PUP went from $648 in 2024 to $1,100 in 2025 and now $2,100. Don’t understand how this can be justified.

 

[RetMD21]

I think their reasoning is that the bundlng and discounts for multiline make people reluctant to switch over the umbrella.

 

[JoeWras]

The news just came in from Amica: our umbrella fee was raised precisely 10%.

 

[Time2]

At our last weekly breakfast, my buddy complained that he got the renewal for his umbrella policy. He said it is just not worth it and will not renew.

 

[street]

It is an issue that needs to be addressed by the Insurance Commission Agency of each state or need answers from US Insurance Agency for the reasoning and data why. It really needs to be looked into.

 

[athena53]

I moved from MO to Iowa and it's been interesting to see how much cheaper my insurance is. It's partly because I no longer own a home so I have a Renters policy, but my $3 million Umbrella premium went from $2,200 annually to $800 and my Auto went from $1,187 for 6 months to $422. Same car, same underlying limits, same insurance company.

Missouri is known as a very plaintiff-friendly state. My son who spent 10 years in Claims has confirmed it but I also saw that personally when I did something stupid almost 3 years ago and, while slowly backing up, sideswiped the shiny new truck of a very unpleasant women. I stopped as soon as I heard a scrape. I later found out my insurer paid her $9,000 for bodily injury as well as the claim for damage to her vehicle. I know she had one passenger since he came out and took pictures, but really? I'm sure she found a lawyer off of the many billboards in MO (interestingly, I have not found similar ones in Iowa so far) and he helped her run up a few chiropractor bills. The insurer settled to keep it out of court, where it could have been much worse.

So please don't blame all these increases on greedy insurers. As I've noted before, insurance rates are basically "cost-plus" pricing and are strictly regulated by the states. Greed comes from elsewhere.

 

[Z3Dreamer]

I echo Athena53's observation. My experience with a few claims over 50 years is that claims adjusters have changed from saving the company money to settling claims quickly. It is cost plus.

I over-tip since Covid because I want service providers to stay in business. Same logic with insurance. I do not want them to pull out of my state. You need a 30% increase to stay in my state and the commissioner has approved it? Sure.