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We can no longer afford to pay $366 a year for a personal umbrella liability policy
The best way to lower your bill without sacrificing coverage is to comparison shop for insurance quotes from multiple insurers. However, you often have to buy umbrella insurance from the same company that provides your auto and home insurance. So if you want to switch companies for your personal umbrella liability policy, you will need to switch your home and car insurance company as well.
As you know, umbrella insurance kicks in when your damages exceed the liability limits on your home or auto insurance. A $1 million umbrella policy costs between $150 to $300 a year, according to the Insurance Information Institute (III). The next million costs about $75, and every million after that costs about $50. You did not mention how much liability coverage you have, so it's tough to say whether your $366 premium falls within the ballpark of average rates.
According to III, most insurers will require you to have about $250,000 of liability insurance on your auto policy and $300,000 of liability insurance on your home insurance before you can buy an additional $1 million of umbrella coverage. One alternative to buying a personal umbrella liability policy is to raise the liability limits on your home and auto insurance policies. To make such an option more affordable, check to see how raising your deductible might affect the premiums for the increased liability limits.
Read more about how umbrella insurance extends your coverage.