Should You Get a Geico Umbrella Policy?
Geico umbrella insurance is a great policy addition for individuals whose net worth exceeds the limits of their standard liability insurance. Learn more here!
Written by Pat Roache
Reviewed by Amy Bobinger
An umbrella insurance policy from Geico acts as an extension of personal liability coverage beyond the maximum limits set in your car and home insurance policies. This allows you to receive more coverage across a wider range of liability claims and for potential lawsuits that could arise.
You may want to invest in a personal liability umbrella policy if you’ve worked hard to accrue a high net worth, or you’re working hard to protect the financial future of your teens and young kids. We’re covering everything you need to know to decide if you should get a Geico umbrella policy on top of your
car insurance
and home insurance
. What is an umbrella insurance policy?
An umbrella insurance policy is an extension of your
personal liability insurance
beyond the limits set by your car and homeowners insurance policies. Also referred to as a Personal Umbrella Policy (PUP), this additional level of protection covers additional costs that aren’t covered by a standard liability policy, like slander and libel.Umbrella insurance policies usually come with a limit of $1,000,000 in additional
liability coverage
, but you can increase this limit in $1 million increments up to $5 or $10 million, depending on the provider. Most insurance companies cap their home and auto insurance limits at $300,000 or $500,000, so you can see that you’re getting a significant amount of extra coverage.The trade-off is that you can only buy umbrella insurance once you’ve met the minimum liability limit, as it will only be applied once your standard liability policies have been exhausted. It doesn’t cost much to purchase PUP, though—typically only an additional $150 to $300 per year.
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How does umbrella insurance work with Geico?
You can add umbrella insurance to your Geico policies once you’ve met certain liability limits for car, home, and boat insurance (if this applies).
Here are the amounts of coverage you’ll need to qualify for Geico umbrella insurance:
- Car insurance: $300,000 per person/$300,00 per accident in bodily injury and $100,000 in property damage OR $250,000 per person/$500,00 per accident in bodily injury and $100,000 in property damage
- Home insurance: $300,000 in personal liability
- Boat insurance (if applicable): $100,000 in personal liability for boats under 26 feet and 50 hp OR $300,000 in personal liability for boats over 26 feet and 50 hp
Unless you live in
New Hampshire
or New York
, you’ll need to have these amounts of car and home insurance before you can purchase any additional umbrella insurance from Geico. If you own a boat, you’ll be required to meet those requirements, as well. Residents in NH and NY can opt to add an umbrella insurance policy to just their home insurance—a Geico car insurance policy is not required in these states.What does Geico umbrella insurance cover?
Umbrella insurance will kick in to cover any remaining damages once your standard liability insurance has been exhausted. It includes extended coverage for the following additional costs resulting from damages and lawsuits:
- Libel, slander, and defamation
- False arrests
- Malicious prosecution
- Mental anguish and personal psychological harm
- Legal defense costs for covered losses
- Overseas liability protection for travelers
Consider the following. While you’re driving home from a weekend camping trip, your front right tire bursts and causes you to swerve into the car next to you. One thing leads to another and suddenly you are the at-fault
driver in a car accident
involving four other cars, meaning you’re responsible for all four other driver’s medical and repair bills.Your
bodily injury liability
and property damage liability insurance
can cover up to $300,000 of these bills per accident, but two of the cars were totaled—including a brand-new fully decked-out Rivian electric truck (yah, it’s expensive). The medical and repair bills total up to $510,000 which leaves you with $210,000 to cover after your liability limit has been met.In addition to all of the bills that would be covered by standard liability, one of the victims is suing for mental anguish due to a disfiguring injury that resulted from the crash. Umbrella insurance would come to the rescue to cover the remaining $210,000 plus the additional charges for mental anguish, since this is covered under the terms of your PUP.
MORE: How different types of car accidents affect your insurance rates
What it won’t cover
While umbrella insurance seems to cover everything like an—well… an umbrella, it is not the ultimate end-all-be-all. Here are some damages and circumstances that your Geico umbrella policy would not cover:
- Your own injuries or property damage
- Anything already covered by a legal contract
- Intentional harm
- Business liability
If a towel slips into your gas burner while you’re making soap for some friends and causes a major fire that affects the condo adjacent to yours, your umbrella insurance will be able to help.
But say you were making the soap to sell at the local farmer’s market as part of your small business. Umbrella insurance would not be able to cover the damages because the fire was caused as the result of a business activity. Instead, it would need to be covered by business liability insurance.
How much does Geico umbrella insurance cost?
The cost of Geico umbrella insurance varies from customer to customer, but a standard $1 million policy typically costs less than $300 per year, or $25 per month.
That said, you may be able to lower the cost of your Geico umbrella insurance to less than $100 per year by applying multi-policy and other eligible
car insurance discounts
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4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversWho can buy a personal umbrella policy from Geico?
Generally, only current Geico customers with car and home insurance policies who meet their liability limits are eligible for a Geico umbrella insurance policy. The only exception to this rule is for residents of New Hampshire or New York, who are not required to carry Geico car insurance before purchasing umbrella insurance.
Individuals with a high net worth above $500,000 should consider an umbrella insurance policy to protect their financial assets.
Individuals with young children should also consider this, as it protects their financial future and covers you for certain associated risks (like a toddler that bites someone or a rager that your high school senior throws while you’re out of town). The same goes for individuals with family pets, pools, trampolines, etc, and is especially applicable if you have
teenage drivers
in your household.MORE: How to get cheap car insurance for young drivers
Is a Geico personal liability umbrella policy worth it?
Consider the following pros and cons to decide if Geico umbrella insurance is right for you.
Pros
…it’s inexpensive. The cost of umbrella coverage rarely exceeds an additional $25 per month, and you could get it for even less with Geico discounts.
…it’s more coverage. The
cost of car accidents
is rising with inflation, so you could face higher liability claims than ever if you’re the cause of one. Umbrella insurance ensures that you’re prepared…it offers additional protection. From coverage that extends to the members of your household to additional damages that regular car and home insurance won’t cover, umbrella insurance includes several exclusive benefits.
Cons
…it comes with requirements. While umbrella insurance itself is inexpensive, the liability limits you need to meet to qualify for PUP will add considerable costs to your premium if you hadn’t planned on meeting those limits already
…it’s exclusive. Certain individuals may be denied umbrella coverage if they have a history of previous losses or certain risk factors.
…it doesn’t pay for your damages. Umbrella liability only pays for damages against others that you are responsible for. It won’t pay for any of your own injuries or property damage. Only
collision
and comprehensive coverage
or other types of property damage insurance will do that.The bottom line
If the net worth of your assets exceeds the limit of your car and home liability insurance, Geico umbrella insurance is a fantastic choice for your financial protection. If not, wait to buy this coverage until you’ve built up your finances to a point where you need the extra protection.
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