Umbrella Policy Questions.

[PewterBird]

I am 20 years old in California, and I am the only one on the title and the registration. My parents insurance agent convinced them to get a umbrella insurance policy in case I was to get into an accident with my car. He claimed since I am under 25, and living at home they could be sued for my accident.

I have talked to other insurance companies, and they explained to me that since I am over 18 an the sole owner and registered owner on the car, my parents cannot be sued for anything I cause.

What is the real answer, I hate the fact I have to have super high limits that cause super high premiums.

 

[knotcops]

Your parents having an umbrella policy is always a good idea. Nothing wrong there except the pretences under which they bought it.

I don't know why you are having to carry the higher limits, but there is nothing wrong with that either. A few extra bucks spent on the higher limits could save you alot of grief later should you be involved in an accident.

Sit down with your agent and go over your policy. Adjustments can be made on comp and coll deductables, rental reimbursement and ERS to lower the premium. Also, you may want to shop around. Don't cheap out though.

 

[dyuan]

If I were you, shop for 3 bids with different insurance companies. You will find that some insurance companies frown on younger age drivers and have higher premiums.

You can also check out their views on umbrella policy, while you are at it.

 

[lwpat]

Insurance companies consider you a teenager until the age of 23 and charge much higher premiums for this age group. The main thing is to shop around and to keep your MVR clean. Just one ticket can cause a major increase in premiums so always fight any ticket.

The only way I can see any advantage for you to the umbrella policy is if you are also included as an insured. Umbrella policies are cheap and a good idea if the family has substantial assets.

You have done one of the things I advise parents. Once the child reaches 18 put the car and insurance in their name.