Am I wasting money by having high limits on my auto policy if I have an umbrella policy?

My Allstate auto policy has limits of 250/500, and I have a $1 million umbrella policy. Why is my coverage so high on the auto policy? Can I lower this to save money?

Answer
“With insurance, you can usually never have too much coverage. But you may have stumbled upon the one time where extra coverage might not be needed!
Many carriers only require liability coverage of up to $300,000 for an an umbrella policy. If this is true for your policy, you can lower your liability limit to $300,000.
Keep in mind that liability tends to be pretty inexpensive, so it might not save you as much money as you would expect.
Some carriers may require you to carry a limit of $500,000 if you are a homeowner, if you own several properties, or if you conduct business in your home. If this is the case, you have the correct coverage on your auto policy.
Allstate is an excellent company, so I suggest reaching out to your agent since they will know the specifics of your policy.”
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Shannon Martin
Answered on May 06, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
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