So, you just dropped $85,000+ for your new Cadillac Escalade Hybrid and you have no idea how much insurance you need to cover your latest eco-friendly, luxury purchase. Its ok -- auto insurance is usually the last thing on the buyer's mind and the first thing on the dealership's mind during the transaction. After all, by law the dealership cannot allow you to drive off the lot without securing ample auto insurance first. You will be required to purchase minimum auto liability insurance
in an amount that is determined by your state of residence.
For example, in the state of Maine, all residents must carry minimum liability insurance coverages 50/100/25. This translates to $50,000/$100,000 for bodily injury, $25,000 for property damage, $50,000/$100,000 uninsured/underinsured motorist (UM/UIM), and $1,000 for medical payments. Maine is one of a handful of states that require UM/UIM. The mandatory minimum amount of UM/UIM covers [$50,000] per person per accident up to a total of [$100,000] per accident for any bodily injury caused by the uninsured and/or underinsured driver. Sound complicated? Well, when it comes to luxury hybrids like the Cadillac Escalade, it can get even more complicated.
Remember, the Cadillac Escalade Hybrid is a luxury vehicle and a hybrid. This means, auto insurance companies will charge higher rates simply because your vehicle is high performance, because it has a higher price tag than regular cars, and because the vehicle is a hybrid. So why are hybrids more expensive to insure? First, hybrids (luxury or not) are heavier than non-hybrids. This means hybrids cause more damage in accidents.
Hybrids also cost more to insure because:
Collision loss costs are much higher for hybrids than non-hybrids. Hybrids have a comprehensive coverage loss of 15%- 17% higher than the average, which costs insurance providers up to 75% more
Hybrid owners drive an average of 2,000 miles more each year than non-hybrid owners. Auto insurance companies say added mileage and more pleasure trips increase the chances of an accident or collision
Hybrids have sophisticated systems, which require expensive, hard to find parts
In addition to Cadillac Escalades luxury status and its eco-friendly design, the Escalade is listed as one of the top ten cars for car thieves. Auto insurance companies have increased their rates for the Escalade SUV as a result.
After receiving your auto insurance quote, it might be tempting to settle for the bare minimum. Dont. You will regret if you ever find yourself in an accident. Minimum auto liability insurance is never enough to cover the cost to replace or repair your Escalade. Not to mention injuries and other property damage that may occur. Listen to your auto insurance broker purchase more than enough auto insurance to protect your precious SUV.
Now, we know auto insurance for your Escalade Hybrid will be costly no matter what you do, but we can help you qualify for discounts and possibly lower (not necessarily cheap) rates. Auto insurance companies are willing to work with you if you are willing to provide proof of intended use and/or a certificate of completion from a safe driver program. You may also qualify for lower rates if you have a clean driving record or if you are willing to install additional safety features.
When youre ready to purchase a policy for your Cadillac Escalade Hybrid, check out what GMAC has to offer first. GMAC auto insurance offers extended coverages, 24-hour customer care, and 24-hour claims service. In addition, the program features SmartDiscounts, and SmartServices. SmartDiscounts include customer discounts for purchasing other GMAC products, paid-in-full discounts, multi-vehicle discounts, loyalty discounts, safe-driver discounts, OnStar subscriber discounts, low mileage discounts, GM Family First Discounts, affinity discounts, and GM supplier discounts. SmartSevices features everything from lifetime guarantees on collision repairs to extended coverages.
GMAC auto insurance offers auto insurance coverages from A-Z. Cadillac Escalade Hybrid owners can purchase bodily injury coverage, property damage, collision, comprehensive, medical payments, uninsured/underinsured motorist coverage, and personal injury protection. To learn more about GMAC auto insurance, visit the official GMAC Insurance website at http://www.gmacinsurance.com. You may also call 1-800-325-1190.
If you prefer to search for another auto insurance provider, you can start by comparing the auto insurance policies and prices of several luxury auto insurance providers. Check out which providers are willing to offer discounts and which ones wont. And finally, when shopping for luxury hybrid auto insurance, never ever purchase a policy based on price alone. Again, cutting corners could end up costing you more than you can imagine down the line.
Michelle Burton is a published author and contributing editor for Auto Insurance Tips
, Trouvé Media, Internet Brands, and Publications International, Ltd.