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Umbrella insurance costs an average of $383 per year for $1 million in coverage. Exactly how much you ultimately pay will depend on factors such as the number of houses and cars your own, whether you have a trampoline or swimming pool, and whether you have any teen drivers on your policy.
Average Umbrella Insurance Costs
| Coverage Amount | Average Cost |
| $1 million | $383 per year |
| $2 million | $474 per year |
| $5 million | $608 per year |
| $10 million | $999 per year |
Note: Average costs are based on a household with one home, two cars and two drivers. Prices will vary.
Source: ACE Private Risk Services
What Umbrella Insurance Covers
Umbrella insurance covers home and auto claims that exceed the limits of your liability insurance, in addition to other liability claims like libel and slander. Most companies will require you to buy a minimum level of liability coverage on a car or house before allowing you to purchase an umbrella policy.
For example, GEICO requires you to have a minimum of $300,000 in liability coverage on your home to qualify for their personal umbrella insurance policy. Alternatively, you could qualify with a minimum of $250,000 in bodily injury liability car insurance per person ($500,000 per accident) or $300,000 in bodily injury liability ($300,000 per accident), plus $100,000 in property damage liability insurance.
Factors That Affect Umbrella Insurance Costs
- The overall risk you present to the insurance company
- The state where you live
- The size of your household
- How much property you own
- How many vehicles you own
- The presence of teen drivers in your family
- Your credit score
- Whether you have an aggressive dog breed, swimming pool, or trampoline
To learn more about umbrella coverage, check out WalletHub’s guide to umbrella insurance.
People also ask
How much does a $1 million umbrella policy cost?
A $1 million umbrella policy costs around $150 to $300 per year, with the cost increasing by $50 and $75 for every additional million. As with any insurance policy, your exact price will depend on individual risk factors, including the number of people in your household and how many cars and properties you own.
A $2 million umbrella policy will cost about $75 more than a $1 million policy, by the way. Every additional...
read full answer by Lilah Butler, Car Insurance WriterIs an umbrella policy a waste of money?
No, an umbrella policy is not a waste of money for people with more than $500,000 in assets. Umbrella policies provide liability coverage beyond the limits of another insurance policy, and even if a policyholder never files an umbrella claim, the low cost of coverage is usually worth the added financial protection.
Most auto insurance policies only provide up to $500,000 in liability coverage, and a good rule of thumb is to make sure...
read full answer by WalletHub, Financial CompanyHow much does a $3 million umbrella policy cost?
A $3 million umbrella policy costs around $275 to $425 per year, on average. Every policyholder’s umbrella insurance premium will vary based on their personal risk factors, so individuals who own more cars or properties will be more expensive to insure, as will people who are particularly likely to be sued.
Average Umbrella Policy Costs
- $1 million umbrella policy: $150 - $300 per year
- $2 million umbrella policy: $225 - $375...
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