The premium on my personal umbrella policy shot up in the middle of the policy term. My insurance agent says it’s because we added a teen driver. This doesn’t seem fair since our daughter is a good student and is covered by our auto policy.

Umbrella coverage works hand in hand with your home and auto insurance. For example, if you are in a car wreck and seriously injure or kill another person, you can easily exhaust the bodily injury limits of your auto policy. When that happens, your umbrella policy steps in and pays the additional amount you owe, up to the umbrella limit (often $1 million).

As a group, teenagers have the highest accident rate of any drivers, and car accidents are the number one cause of teen deaths. There are many reasons for these grim statistics: teens are more inexperienced drivers, engage in riskier behaviors and are easily distracted by electronic devices. There is much you can do to keep your daughter safe behind the wheel. If your state doesn’t restrict cell phone use and texting while driving or impose curfews and passenger limits for young drivers, you can set limits on those activities yourself.

With time and a good driving record, your daughter’s auto and umbrella insurance premiums will decrease. In the meantime, you can get a lower overall rate for your family’s insurance by purchasing your home, auto and umbrella coverage from a single insurance carrier. Also ask about good student and other applicable discounts. Increasing your home and/or auto deductibles is another way to make insurance more affordable.