I use an umbrella - won't leave home without it. I find it keeps me drier than anything else. If it's cool, I'll wear a fleece (cheap fleece is as good as most, but my Patagonia R2 is DWR treated and really works well). I rarely use my rain jacket, usually only when it's so windy the umbrella needs help. I sometimes use a rain kilt if it's cold and windy enough.
I have a homemade pack cover that is open at the bottom, so it does not collect rain like some off the shelf covers will. I borrowed the design from a 1970's era Kelty pack cover. My pack is lined with a silnylon drybag.
The combination of umbrella, pack cover and pack liner has kept me and my stuff drier and more comfortable than any other combination I've tried or seen.