How to Negotiate the Best Rate for Umbrella Insurance
When you go out looking for umbrella insurance, not every company will offer you the same rate. And even within one company, not every agent will offer you the best rate available. In the insurance industry, umbrella insurance rates are usually a matter of negotiation. Here's how to come out on top:
- Have all your information ready. In order to give you a quote, an umbrella insurance company will need to know information about your current and past financial and risk history. You will need to know the value of your assets, the relative risk of your lifestyle and/or company, and your past insurance claims.
- Know what the information means. You need to do more than merely gather a bunch of paperwork and throw it at the insurance agent. If you own a multimillion dollar home and you frequently have big parties, then you need to understand why this is a risk factor for lawsuits. Knowledge is your sharpest tool for how to negotiate the best rate for umbrella insurance.
- Know the competition. Get quotes from several insurance companies, both large and small. Be prepared to ask your agent questions like: Why does this other company offer a better rate than you?
- Ask about fees and hidden costs. It's a red flag when companies offer a dramatically lower rate than the competition. Sometimes the lower rate is legitimate, but you should always ask about hidden costs like joining fees and leaving fees.
- Get a personal referral. Ask your friends, neighbors, and colleagues about their umbrella insurance company, and use their name when you make that first appointment with an agent.
