Cheap Car Insurance: Is it really the best?

Written by Rebekah Morris

Is cheap car insurance the best car insurance?  Do you need higher liability limits than the North and South Carolina state minimum of $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $25,000 for property damage? Unfortunately, the number of distracted driving accidents is on the rise along with the cost of injuries and repairs.  This common claims scenario gives the answer!

Let’s set the scene on the error of cheap car insurance and minimum limits!

You are driving down the road and hit a 2015 Toyota Corolla. A base model for this car costs about $17,750 MSRP. So, you are a little bit below your property damage limit of $25,000. But what if you cause a multi-car accident? That $25,000 would become exhausted pretty quickly. 

Now let’s look at your bodily injury limit. Few car accidents these days don’t result in some type of bodily injury, anything from a soft tissue injury to broken bones and head injuries. The average soft tissue injury is going to start around $5,000. Let’s go on to imagine that the vehicle that was hit is totaled, which led to more severe injuries. The cost of the average hospital stay is around $10,000. On top of that, if injuries are substantial, it could the injured time away from their job. If that is the case, they could be looking at your car insurance to pay lost wages from the car accident. 

With all of these factors, those minimum limits disappear pretty quickly. Once your liability limits and property damage limits are exhausted, who do you think is on the line?  It will not be the insurance carrier; it will be the person who caused the accident. 

So, while you may save $10-$20 a month by choosing minimum liability limits on that cheap car insurance policy, is it worth it in this common claims scenario? Hop on over to your insurance agent and get a quote to increase those limits to make sure you are protected in the case of an accident. The low costs to increase the limits could surprise you!