If you drive in Colorado and want more liability protection than a standard auto policy provides, combining your auto insurance with a personal umbrella policy can be an affordable way to increase your coverage. Umbrella insurance provides additional liability protection above your auto policy limits and can help protect your income, savings and other assets after a serious covered accident or lawsuit.
Many insurance companies offer both auto and umbrella coverage, and keeping the policies together can make it easier to meet umbrella eligibility requirements while potentially qualifying for additional discounts. Castle Rock Insurance and its partners can help Colorado drivers compare both policies from multiple carriers and find the right balance of coverage and cost.
How Much Does Auto & Umbrella Insurance Cost in Colorado?
A $1 million personal umbrella policy may cost approximately $200 to $500 per year for a relatively straightforward Colorado household, although rates can be higher based on the number of drivers, vehicles, driving history and other liability exposures. Additional millions of coverage are often available for households that need higher limits.
Your auto insurance will usually represent the larger portion of the combined premium. Because umbrella insurers typically require higher underlying auto liability limits, you may also need to increase your existing auto coverage before the umbrella policy can be issued. This can affect the total cost of adding umbrella protection.
How Does Auto & Umbrella Insurance Work Together?
Your auto policy is generally the first layer of liability protection after a covered accident. If a serious claim exceeds the applicable auto liability limit, an eligible umbrella policy can provide additional coverage above that limit.
For example, suppose you are responsible for a covered accident resulting in $900,000 of liability and your auto policy provides $500,000 of applicable coverage. The auto policy could respond up to its limit, while the umbrella could potentially cover the remaining eligible amount, subject to the terms and exclusions of both policies.
What Can an Umbrella Policy Cover Beyond Your Auto Limits?
Umbrella insurance can become particularly valuable when a serious accident produces damages that exceed your auto insurance liability limits. Examples include a multi-vehicle crash with several injured people, an accident involving a pedestrian or cyclist, or a collision that results in extensive medical treatment, lost wages or long-term disability for another person.
These claims can become much larger than the cost of repairing the vehicles involved. Depending on the policy and circumstances, umbrella coverage may also help with certain legal defense costs and other covered liability expenses associated with a serious claim or lawsuit.
Can Bundling Auto & Umbrella Insurance Save You Money?
Some insurance companies offer a multi-policy discount when auto and umbrella coverage are placed with the same carrier. Savings vary, so the insurer offering the largest advertised discount is not necessarily the company with the lowest overall premium.
If you insure more than one vehicle, you may also qualify for a multi-vehicle auto insurance discount. Comparing the final cost of your auto and umbrella policies after all applicable discounts provides a better measure of value than looking at any one discount by itself.
How Much Umbrella Insurance Do You Need?
Personal umbrella policies commonly begin at $1 million, with higher limits available. The appropriate amount depends on your income, savings, investments and overall financial exposure. Drivers with substantial assets, multiple vehicles or younger drivers in the household may want to consider higher limits.
The purpose is to have enough liability protection that a major accident is less likely to put your personal finances at risk. An insurance agent can also help you compare the cost difference between $1 million and higher umbrella limits.
What Auto Liability Limits Are Required for an Umbrella Policy?
Umbrella insurers generally require you to maintain specified bodily injury and property damage liability limits on your auto policy. Carrying Colorado’s minimum required auto liability limits will typically not be enough to satisfy an umbrella carrier’s underlying coverage requirements.
If your current limits are too low, they will need to be increased before the umbrella policy can provide the intended excess protection. The exact requirements vary by insurance company, which is one reason it can be helpful to review the auto and umbrella policies together.
Should Auto & Umbrella Insurance Be With the Same Carrier?
Often it makes sense. Keeping both policies with the same company can simplify underwriting, make it easier to meet underlying liability requirements and potentially qualify you for a multi-policy discount. However, the best option still depends on the combined premium, coverage limits and policy terms.
Compare Colorado Auto & Umbrella Insurance
Castle Rock Insurance and its partners help Colorado drivers compare auto and personal umbrella insurance from multiple carriers. Whether you are adding your first $1 million umbrella policy, increasing your liability protection or looking for a more competitive auto and umbrella combination, we can help you compare available options. Request a Colorado auto and umbrella insurance quote today.
