Auto insurance protects you and your family against financial loss in the event of an accident. It is a legal and binding contract between you and an your insurance company. The insurance company will protect you as defined in the contract up to the limits of liability and you agree to pay the applicable premium. See how much you should be paying for Chicago Auto Insurance by filling out this short form.
Liability Coverage Limits – These limits are the monetary limits that you have determined that you want to be protected for by the insurance company in the event of a loss. When determining these limits the clients need to consider how they would pay for any amounts of monies that they would be liable for if the damages they cause are above their limits. For example: A client carries 100,000 Bodily Injury per person limit/$300,000 Per Accident limit/$100,000 Property Damage limit. If the medical bills of the party that they are negligent in hitting have medical bills of $500,000-how would the client pay for the additional damages? Mortgage their home? Garnish their wages? It is very important to property select your liability limits.
Property Damage Limits – This coverage pays for the repair and replacement of the other person’s car that you damage in the event of an accident. Properly selecting these limits is very important. If you carry $25,000 PD limit and you hit a 2010 Lexus that’s value is $55,000 you will have to come up with $30,000 cash to pay for the rest of the damages.
Medical Coverage – Medical coverage covers the medical bills of the people in the car in the event of an accident. The policy pays up to the limits selected by the client and their health carrier will pay the balance after that.
Uninsured/Underinsured Motorist Coverage – This coverage pays for the medical cost for you and your family in the event that some you are involved in an accident with someone else who is at fault and they don’t carry insurance or do not carry enough to pay for damages done to you.
Comprehensive and Collision Deductibles – The case with both coverage’s is-the higher the deductible the lower the premium. Collision coverage pays for the damages to your car after an accident. The collision can occur with another car, a stationary object a pot hole. It is a collision with something. Comprehensive coverage pays in the event your car is damaged as a result of things other than a collision. For example-hail damage, glass breakage, theft etc. If your car is financed the lienholder will require that you carry both coverages to protect their investment. If you do not have a lienholder you may want to consider dropping comprehensive and collision, as these are not required by law.
Miscellaneous Coverages – Towing-covers the cost of towing your vehicle to the closest place of repair and an hours worth of labor to get the vehicle running again. Parts are not covered. Car Rental-covers part/all of the cost of a rental car in the event of a covered loss. Various limits apply.