Is Car Insurance That Big of A Deal?

It had been quite a while since I had gone car shopping. I have always been one of those guys that will drive a car until the wheels fell off. Sure I like nice cars but a nice car to me is one that the AC works and the transmission doesn’t drip red fluid on my driveway. But my wife has a different view of cars than I do.

With a slight urging from my wife, we both agreed to go “tire kicking” at some of the local dealerships in Dunn, NC. There are several dealerships in our small town so we had a lot of selections to choose from. I’m a Car kinda guy and she is a SUV kinda gal. So with this in mind, we had to decide to meet in the middle. We went shopping for SUV’s.

Time to go kick tires

Our first stop was at the Ford dealership. We looked at Ford Explorers. The prices ranged form $40,000 to over $50,000. We then went to the Chevy dealership and looked at the Chevy Tahoe. These ranged about the same as the Ford Explorers. Our last stop was that the GMC/Cadillac dealership. We looked at a Cadillac Escalade and after a bit of a surprise, we both got our car and went home. This visit changed the way I looked at car insurance and here’s why.

In North Carolina you are required by law to maintain $25,000 in Property Damage Insurance Liability. The game changer was when I saw the price of the Cadillac Escalade. It was $97,000 out the door. That’s right, $97,000 for a vehicle. Granted it it’s a very nice vehicle but that’s still a great deal of money for most folks.

Why should this matter to me?

The fact that the insurance laws for North Carolina require you to have only $25,000 of Insurance Property Damage and there are vehicles on the road that are valued in excess of $90,000 should cause you concern. Let’s discuss the consequences of not having enough Car Insurance coverage if you were to damage or total loss someones brand new Cadillac Escalade in an accident collision.

If you were to have the State Law minimum of $25,000 and the vehicle you damage in a collision is valued at $100,000, you’ll be personally liable for the excess. That’s $75,000 out of your pocket. Imagine the scenario if you collide with a:

Tractor Trailer ($250,000)
Highway Overpass ($350,000)
Motor-home ($600,000)
School Bus ($300,000)
Run Off the Road into a Store or House ($$ Skies the Limit)

Yes, the values of vehicles on the road can boggle your mind if you stop and think about it. How much can you afford to pay out of your own pocket if you’re at fault in the collision?

Now That I have Your Attention

This is where a local insurance agent can help. Higher Car Insurance limits of Property Damage Liability are available to most North Carolina drivers. Insurance companies in our state must offer up to $50,000 of Property Damage Liability Insurance. Many companies can even offer $100,000 and more. Surprisingly, these higher limits of coverage are very affordable for most good drivers. There are even policies that can provide you insurance protections into the Millions of Dollars with an “Umbrella Policy”.

So Now What Do I Do About My Car Insurance?

It’s now time to consider the cost of not having the right amount of Car Insurance. Insure yourself to protect your standard of living should a car accident occur. Give your trusted insurance agent a call to discuss your concerns. Have the conversation about higher limits of property liability insurance and ways to protect your financial future. Purchase a car insurance policy based on how much protection you need versus how much money you can save on your monthly bill.

Sure saving money on car insurance is good, but not having enough insurance to protect you for the catastrophic car collision could cost you everything.

Rodney Stewart, Agent/Founder

Tristar Insurance Services 910-891-7081 rodney.stewart@nctristar.com