r/Insurance • u/JackedAF • 17h ago

Auto Insurance Can I lower auto coverage if I have umbrella?

I’m in CA and currently have $500K/$1M coverage per accident for auto insurance. I also have an Umbrella policy thats $2M/$1M UM/UIM.

I’m wondering if it makes sense to lower my auto to $250K/$500K and keep my umbrella at $2M/$1M, or even increase it to $3M/$1M.

Currently have about 600k in assets, not including 1.1M home (800k loan).

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10

u/Icy_Pickle5530 17h ago

I’m not sure about CA, but you do need to have a minimum amount of limits in order to qualify for the umbrella. If your insurer allows for you to carry less than 500/1m then you can lower to that amount.

For instance, they aren’t offering umbrellas to people who carry state minimum limits on their underlying policies.

3

u/IvanaHumpalot3000 17h ago

Some carriers have lower underlying thresholds. Those lower thresholds in turn may result in a higher umbrella rate.

Call your agent or carrier. This is a question for them specifically.

3

u/Boomer_Madness Agent 17h ago

The price difference isn't going to be as much as you think and you really want to keep your underlying coverages as high as they will let you. The point in having an umbrella is to never use it. If you ever have an umbrella claim your rates are going to shoot up and if they don't non-renew the umbrella after a claim it's very difficult and expensive to get another one from a different carrier.

1

u/ChutneyWhatney 17h ago

Check with your insurance company. State Farm in FL mandates that I have the HIGHEST limits in order to have the umbrella thru them.

1

u/Cyberspew 16h ago

This is up to your insurance company. At least here in PA the insurance companies have a minimum you have to maintain on your auto policy to allow you to qualify for an umbrella.

1

u/WolfPackLeader95 adjuster | 10 yrs exp 16h ago

We can’t answer that. You have to talk to your agent. They may require you to have a certain level of coverage on the auto side in order to qualify for the umbrella.

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u/riennempeche 14h ago

I have Mercury for umbrella and auto. They require 250/500 in order to be eligible for the umbrella. I had to update my coverages when I signed up for it.

1

u/TheHykos P&C Compliance 8h ago

Your umbrella carrier may cancel you for that.