Rates are something that you cannot compare to anyone else. Each state is different and then even neighbors rates with the exact same vehicle can be different rates based on insurance score and various other factors. That is why so far, I have not commented on rates. You shouldn't compare to others. Shop rates with various companies if you want, but you cannot compare to your neighbor or someone on an Internet board. No one on here can say someone is paying a low or high premium because we are not looking at your rating factors. I am sure there is a valid reason for your rate that your agent can explain.
I am replying about your question on Umbrella. Have you heard about a doctor having professional liability in case she/he is sued for an error she/he may do on the job? Umbrella is excess personal liability. It protects people against claims or lawsuits for errors she/he may do as a person... such as being at-fault in an auto accident.
Umbrella is a "excess personal liability" policy that acts as an umbrella over your auto policy and home policy. It will cover all household members (those with a DL will be listed as operators), all vehicles, all homes, and all vacant land that you own or co-own, so each one has to be listed. Many people own more than one home or co-own a home with a sibling. For this reason the company may require you have all these products with them and not split up between companies. All insurance companies require certain minimum liability limits on your auto and home policy to maintain an umbrella policy. These underlying requirements may vary company to company. Most umbrella start at $1Million in coverage and only goes up from there.
For an umbrella example below, I am going with the company minimum liability listed as:
Again underlying requirements is determined by the company.
Auto
Bodily Injury $300,000 per person / $500,000 per accident / $100,000 in property damage This is where you see 300/500/100
Home
Minimum Liability of $300,000
Personal Injury Endorsement that extends coverage for intentional torts like libel, slander, defamation of character, wrongful arrest, assault and battery when not criminal, etc. (This endorsement may vary company to company as well, mine includes this whenever there is an umbrella policy.)
The Umbrella doesn't kick in until the situation (claim or lawsuit against you) exceeds the underlying liability limits. So let's say you are sued after an auto accident for bodily injury of $3Million and you have a $3Million umbrella, the auto covers up to the 300/500 and then the umbrella picks up the rest. Umbrella also covers the cost to defend you and pays out up to the policy limits.
There are myriad of reasons you can be sued. You can be sued for leaving a bad review on yelp. I know someone who saw a man in a car, hit a man on a bicycle, he gave his witness statement to the police. The man in the car is now suing him over his witness statement. The other day, I heard of office drama leading to a defamation of character lawsuit. Your kid is accused of bullying someone at school and you are sued. Your dog bites the neighbor, etc. It doesn't matter if you are right or wrong, the fact of being sued and having to hire a lawyer and make it to court for the case to be thrown out is a pain the butt.
Umbrella is it's own separate policy with it's own separate premium.
OP, what you currently have on your policy you would have to INCREASE liability, which increases the auto policy premium. We haven't even discussed your home policy. Then if you wanted an Umbrella you have an additional premium on top of the auto premium increase. Umbrella policies are wonderful to have when you need them.
Umbrella give you piece of mind that is you are served with a lawsuit, you are protected. Last year a crazy lady on Etsy was making threats to sue me for a bad review I left. She was trying to get me to remove my review. I left an honest feedback and could back-up what I was saying, so I refused to remove my review. I was actually going to return the product to her, but then she started making threats so I still have that product in it's original package along with other items I would need in case a lawsuit pops up. Having an umbrella is piece of mind of "bring it" I know I am protected. I haven't heard from her in over a year, no lawsuit.