Learn About Car Insurance
Car insurance coverage has two parts. The first is the liability section of the policy. It covers your financial responsibility for injuring others. The state of Illinois requires liability coverage for all vehicles.
The second part of car insurance covers the car itself, most people refer to it as “full coverage”. Full coverage includes comprehensive coverage, which reimburses losses from hail damage, fire, theft or other losses; collision coverage pays to repair losses caused by an at fault accident. Often this coverage is mandated by leasing companies or banks.
learn more about car insurance from cnn money.
Utilizing high deductibles on the physical damage coverage’s can help reduce premiums. If you carry umbrella insurance, you must be sure that you carry the required amount of basic liability insurance to avoid a gap in coverage for a serious accident.
You can learn more about the company providing you insurance from you agent as well as AM Best. AM Best is a company that scores insurance companies based on financial stability and outlook.
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Car Insurance Coverage’s
Bodily injury liability
Bodily injury liability covers the designated driver or policy holder if they injure others. If you have family members listed on your policy, they are also covered if driving another person’s vehicle with their permission.If you opt for the minimum liability coverage, be careful- the amount you purchase may not completely cover you if you are involved in a serious accident or are served with a lawsuit. Buying more than the state required minimum will protect your assets- like your home, boat, and savings- if you get into an accident.
click here to see an article from wallethub.com about bodily injury.
Medical payments (or personal injury protection plans) pay for the care of injuries to the driver and passengers of the policyholder’s car in the event of an accident. Depending on the amount of coverage you choose, medical payments coverage can cover medical costs, lost wages, and possible funeral costs.
Property Damage Liability
Property damage liability coverage covers the damage you, or someone driving your car with your permission, does to another person’s property. Usually, this includes damage to lamp posts, telephone poles, buildings, fences, or other structures you may hit.
Collision coverage covers damage that to your car that results from a collision with another vehicle or object. This type of coverage also covers your car against damage from potholes, or if it flips over. You can choose a relatively low deductible or a high one- but keep in mind that a higher deductible will result in a lower premium.
If you car is stolen or is damaged by something other than a collision with another car or object (i.e. fire, falling objects, explosions, hail, vandalism, etc.). Comprehensive insurance will also reimburse you if your windshield is cracked or shattered. Some companies offer glass coverage with or without a deductible.
for more on comprhensive coverage check out this article from howstuffworks.com
Uninsured and Underinsured Motorist Coverage
If you are hit by an uninsured driver, or are the victim of a hit and run accident, this type of coverage will reimburse you, a member of your family, or a designated driver. Underinsured motorist coverage is used when an at-fault driver does not have enough insurance to pay for the costs to repair your vehicle. This coverage can also come into play if you are hit as a pedestrian.
What is Full Coverage Car Insurance?
Liability Only Car Insurance
Liability only coverage means that you only purchase bodily injury coverage and property damage coverage. These two coverages are required to drive in IL and MO.
How much liability coverage to buy
We use two good rules of thumb.
1. Buy as much liability coverage as you can afford.
2. Buy enough liability coverage to cover all of your assets.
AW Insurance can help you find the coverage that fits your driving needs. We are sensitive to all of you’re auto insurance issues and will compare policies and rates to find what’s right for you!