My car is old, so I don’t need to have high insurance limits | Insurance Myths

Whether you’re driving a brand-new SUV or a fifteen-year-old sedan, your responsibility—and your exposure to risk—stays the same. Skimping on liability limits just because your car is older could leave you dangerously under-protected at the worst possible moment.

Imagine this scenario: If you’re involved in a car accident that seriously injures someone, and they incur $150,000 in medical bills, your insurance may not fully cover the costs. With optional bodily injury liability limits of $100,000 per person/$300,000 per accident, your policy would only pay up to $100,000 for that individual. You’d be responsible for the remaining $50,000 out of pocket—a financial hit that could have been avoided by choosing higher coverage limits or adding an umbrella liability policy.

Should You Drop Comprehensive and Collision Coverage?

When it comes to older cars, many people consider dropping comprehensive and collision coverage. This can make sense if the cost of the coverage outweighs the value of the vehicle. However, before making this decision, ask yourself:

• Can I afford to replace my car out of pocket if it’s totaled or stolen?
• Would repairing or replacing the car strain my finances?

If the answer to either question is “no,” keeping comprehensive and collision coverage might be a smart move. The small savings from dropping these coverages might not be worth the risk of having to pay for a replacement vehicle without any insurance support.

⚖️Balancing Coverage and Costs

Insurance is about balancing risk and protection. While you might save some money by lowering certain coverage, the potential costs of being underinsured can be catastrophic. Liability insurance is the foundation of your financial well-being, and ensuring you have adequate limits protects your future, no matter the age of your car.

Take Action

Take a moment to review your liability coverage limits to ensure you’re financially protected in case of an accident. Also, assess your comprehensive and collision coverage. If you’re unsure what’s right for you, contact us—we’re here to help you assess your options so that you can make an informed decision about your coverage needs.