Learn me: saving on car insurance with umbrella policy

I’m shopping insurance right now. Had liberty mutual for years but currently (last 3 yrs) with USAA. Found yesterday that Geico and Progressive are much lower.

Somewhere I saw a suggestion to lower the auto policy limits to state minimum coverage then rely on umbrella policy as a liability backstop to save some money on premiums. I have a teenage driver in the family so I need to save some money, but USAA says umbrella policy holders require 300/500 auto limits. So it’s the opposite of saving. 

Has anyone done this? Please name companies. 

I used to do this, but haven't had one of these policies in many years now. I can't provide any details in the short time I have available right now, but I can add this: we don't have one anymore because you have to own a home.

Most umbrella policies I know of require you to max out the liability amounts on your policy first.   I dont think you will save monthly with an umbrella, but if you have a lot of assets worth protecting it is worth the added  expense.   I am no insurance expert though.  I recommend talking with an independent insurance broker for expert advice.

Best bet would be to call a broker to shop the independent companies for you.

Then you'll have to call the big guys on your own (State Farm, Farmers, etc) since they are only sold through contracted agents.

I think an umbrella saves you money when you are liable for crash damages that cost more than your policy limits and the other party's lawyer finds out you have assets or a sorta-high paying job to cover the difference. 

The medical is what is scary to me. Because my day job is billing it. 

When I looked in umbrella policies, as FieroReinke wrote, the insurance company required the car liability coverage to be maxed out first.

Also, in my experience, there isn't that much of a price difference between high liability limits and minimum coverage so I'm not sure how much you would actually save. 

I have one for 1mm coverage at State Farm.  It is effectively $50 a year for the additional coverage.  It is 250 a year but reduced my home and auto by 200 a year for 50 net.  I can’t speak to reducing coverage amounts in the process but it’s a good question to ask an agent.  I’d suggest speaking to a private agent that shops all the brands to learn more and get the best deal.

Good advice. I’m gonna make some coverage changes soon as appreciate all info. 

Yup, you have to have auto and home at about $500k each to be able to get an umbrella, which kicks in above that.  Unlikely that an umbrella would save you anything at all, unless you caused some really devastating damages/injuries

Umbrella is protection. I’ve worked for 25 years and saved diligently for all of them. I don’t want all that work lost in an instant. 

In reply to OHSCrifle :

I’m in a little different situation than most.  I have a pretty big exposure due to living on a Lake, having boats, cars, hobbies etc. that expose me. 

By buying a milllion umbrella it only adds $15 a month to my insurance cost and saves me a lot in liability on cars, boats, etc.  The big savings is due to   Liability on the home. (numbers not accessible here)  I had Farmers and now am with State Farm. 

The other big insurance saving is by getting newer cars with Blind spot detector, back up camera, smart Cruise control( automatic braking) etc.  The more of those features the lower the insurance is.  Turns out my new pickup costs less to insure than my 20 year old pickup did.