Not much, you might think. Aside from sitting in your driveway or your garage, your car and your house don’t really have much of a connection, right? The connection, simply, is you, and your assets.

If you own a home, particularly if you’ve built up any equity in it, you already have a lot at risk. According to Zillow, just in Summerville, SC, homes values have increased about 30% in the last 5 years! This means that even if you haven’t made a huge dent in the principal on your mortgage yet, you probably still have a good amount of equity in your home, and that your assets (and your net worth) are higher than you might realize.

You’re probably wondering what this has to do with your car insurance. Obviously your auto policy is there to repair or replace your car in the event of damage, and to comply with state law, but the most important feature of your policy is your liability coverage. This coverage has a limit, and the higher the limit, the more protected you are. The limit of liability on your auto policy is the maximum amount your insurance carrier will pay if you are liable for damages from an accident. This is why we recommend you carry limits that exceed your net worth. If you don't know your limits of liability, please check today. If you are found liable for an accident or someone’s injuries or property damage, then your assets are at risk to a lawsuit. This includes money in the bank and, it includes physical assets like your home and the equity in it, which could outweigh your liquid assets. Having a large reserve of cash in the form of an insurance policy to protect those assets is critical to your financial wellbeing.

The good news is that increasing your limits of liability is almost always cheaper per dollar of coverage as you move toward the highest level. Put another way, your cost per dollar of coverage drops significantly the more you buy.

For the price of a fast-food drive through meal for the whole family once a month, you could double your liability protection.

So the next time you drive past one of the nation’s burger chains, think about skipping the high cholesterol meal, and putting those dollars to work protecting you and your family. Not only is this a good choice for your physical fitness, but for your financial fitness as well.

If you bought your policy online, and the company offered you the minimum limits of liability, then their main focus was on showing you the lowest possible price, and making the sale, not consulting with you to determine the level of protection your family needs. Our consultative approach will help you have a better understanding of your options and from there, you can decide what’s best for you and your family.