liability protection - umbrella policy

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Topic Author
atlanta_dad
Posts: 174
Joined: Wed Aug 07, 2013 12:04 pm

liability protection - umbrella policy

Post by atlanta_dad »

I am shopping for better rates on my auto, home & umbrella policies after being with Erie for almost 11 years. So far I did not come across any better quotes after spending 4-5 hrs on this, but still trying. I wanted to share one interesting conversation regarding liability protection I came across with the Nationwide agent and wanted to know your opinion.

I have a $1M umbrella policy with Erie.

---------------------------
Current Erie Auto policy - Liability Protection:
Bodily Injury + Property Damage combined $300k per accident

The Nationwide Auto Policy quote - Liability Protection:
Property Damage per occurrence - $100k
Bodily Injury per person/ per occurrence - $250k/$500k
---------------------------

If I have $1M umbrella policy, if I cause an accident that costs $1M, is Nationwide liability coverage any better than the Erie auto coverage I have now? But the agent tries to convince me his coverage is better. Is he right?

My understanding is over $300k in an accident (in my state) will be covered by the umbrella coverage (up to my coverage $1M limit)

Thanks in advance
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oldcomputerguy
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Re: liability protection - umbrella policy

Post by oldcomputerguy »

This topic is now in the Personal Finance forum (insurance question).
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senex
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Re: liability protection - umbrella policy

Post by senex »

Your question isn't entirely clear -- are you comparing (Erie auto + Erie umbrella) to (Nationwide auto alone) or (Nationwide auto + Erie umbrella) ?
Gradient Descent
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Re: liability protection - umbrella policy

Post by Gradient Descent »

senex wrote: Fri Jul 01, 2022 3:35 pm Your question isn't entirely clear -- are you comparing (Erie auto + Erie umbrella) to (Nationwide auto alone) or (Nationwide auto + Erie umbrella) ?
For the latter scenario, if true, the OP may want to check if Erie will still carry them on an umbrella policy without a corresponding auto policy. E.g., GEICO requires a GEICO auto policy to buy umbrella in most states: https://www.geico.com/umbrella-insurance/
mkc
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Re: liability protection - umbrella policy

Post by mkc »

Gradient Descent wrote: Fri Jul 01, 2022 9:09 pm
senex wrote: Fri Jul 01, 2022 3:35 pm Your question isn't entirely clear -- are you comparing (Erie auto + Erie umbrella) to (Nationwide auto alone) or (Nationwide auto + Erie umbrella) ?
For the latter scenario, if true, the OP may want to check if Erie will still carry them on an umbrella policy without a corresponding auto policy. E.g., GEICO requires a GEICO auto policy to buy umbrella in most states: https://www.geico.com/umbrella-insurance/
In our state, Erie excludes vehicles not insured with them from the umbrella policy unless you have a specific rider. Depending on the circumstances, that rider will add cost to the umbrella policy.
gavinsiu
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Re: liability protection - umbrella policy

Post by gavinsiu »

The cutover for insurance between what is covered by auto/home and when it is covered by umbrella could vary a bit from vendor to vendor. I believe insurer may even allow you to adjust the cutoff within certain limits. Usually you adjust to what would incur the lowest premium.
NYCaviator
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Re: liability protection - umbrella policy

Post by NYCaviator »

atlanta_dad wrote: Fri Jul 01, 2022 2:08 pm
My understanding is over $300k in an accident (in my state) will be covered by the umbrella coverage (up to my coverage $1M limit)
Combined single limit means you have 300k to cover injuries for every occupant of the other vehicle AND any property damage. Above that amount, the umbrella kicks in.

The split policy means you have 250k per person for injury, up to 500k per crash, and 100k for property damage. Above those amounts, the umbrella kicks in.

If you have an umbrella, either policy is fine. Nationwide technically has more coverage, because there's a separate 100k for property damage that doesn't eat into the overall bodily injury liability limit. It also has an overall 500k liability limit, which can mean more coverage if there are multiple people in the other car.

I would consider increasing your umbrella in either case. It's probably not much more money to go to 2m or 3m and then you really won't need to worry about the difference in policies. People often leave their coverage the same for years, but don't think about inflation. An ER visit today is a heck of a lot more expensive than an ER visit 10 years ago. $1m doesn't go very far in a bad crash, especially if there are multiple occupants in the other vehicle.

In terms of carriers, Erie seems to get much better ratings that Naitonwide so I'd stick with them if the prices aren't much different.
Deblog
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Re: liability protection - umbrella policy

Post by Deblog »

We just switched to Erie. Our previous insurer did not treat metal roofs on houses well. Would only cover “structural” damage and not cosmetic. We just moved to a metal sided house. In looking at many insurers, Erie prices the best and has available added coverage for matching. Also someone who repairs metal siding damage said our previous insurance denies everything and Erie was the best for paying for repairs. Our car/motorcycle insurance dropped dramatically.
toddthebod
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Re: liability protection - umbrella policy

Post by toddthebod »

You should have your umbrella policy with the same carrier as your auto, and you should just ask them for the minimum auto liability necessary to qualify for the umbrella policy. Then up your umbrella to whatever level you need it. There's no need for higher liability limits on your auto if you have the umbrella backing it up.
gavinsiu
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Re: liability protection - umbrella policy

Post by gavinsiu »

I don't know if it's still true, but Eries is one of those rare home policy that has guarantee replacement cost which paids if your house replacement cost turn out to be much higher than expected. Most policy will only allow a certain percentage above what was insured.
mkc
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Re: liability protection - umbrella policy

Post by mkc »

gavinsiu wrote: Sat Jul 02, 2022 1:03 pm I don't know if it's still true, but Eries is one of those rare home policy that has guarantee replacement cost which paids if your house replacement cost turn out to be much higher than expected. Most policy will only allow a certain percentage above what was insured.
Having just renewed with Erie, yes, in at least some states they offer guaranteed replacement cost.

The % above stated value type of homeowners is called "extended replacement cost" and is typically offered at +25% and +50% insured value.

FYI in both these cases, it's for primary residence structure only. Additional buildings (such as a detached garage or workshop) are covered only up to their insured value.

Note that OP is not asking about homeowner's insurance.
Topic Author
atlanta_dad
Posts: 174
Joined: Wed Aug 07, 2013 12:04 pm

Re: liability protection - umbrella policy

Post by atlanta_dad »

NYCaviator wrote: Sat Jul 02, 2022 10:27 am
atlanta_dad wrote: Fri Jul 01, 2022 2:08 pm
My understanding is over $300k in an accident (in my state) will be covered by the umbrella coverage (up to my coverage $1M limit)
Combined single limit means you have 300k to cover injuries for every occupant of the other vehicle AND any property damage. Above that amount, the umbrella kicks in.

The split policy means you have 250k per person for injury, up to 500k per crash, and 100k for property damage. Above those amounts, the umbrella kicks in.

If you have an umbrella, either policy is fine. Nationwide technically has more coverage, because there's a separate 100k for property damage that doesn't eat into the overall bodily injury liability limit. It also has an overall 500k liability limit, which can mean more coverage if there are multiple people in the other car.

I would consider increasing your umbrella in either case. It's probably not much more money to go to 2m or 3m and then you really won't need to worry about the difference in policies. People often leave their coverage the same for years, but don't think about inflation. An ER visit today is a heck of a lot more expensive than an ER visit 10 years ago. $1m doesn't go very far in a bad crash, especially if there are multiple occupants in the other vehicle.

In terms of carriers, Erie seems to get much better ratings that Naitonwide so I'd stick with them if the prices aren't much different.
Thanks for your input, yes the quotes are not any better than Erie, so I will stick with Erie.
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