Do You Really Know Car Insurance Basics?

It’s important to choose car insurance that fits your state’s laws and your needs. To do that, you need to know the basics of insurance policies and what they cover.

Basics of Car Insurance

Most states require vehicle owners to have liability insurance, often requiring a minimum amount of coverage. Failure to carry insurance has serious consequences. Driving without insurance can result in a fine up to $1,000.00. Additionally, driving without insurance will cause the Secretary of State to suspend a person’s driver’s license. In Illinois, every driver must have liability coverage of $25,000.00 per person for bodily injury as a result of a collision. It is easy to see how a serious collision could cause damages in excess of $25,000.00. If you are at fault for the collision and the damages exceed $25,000.00, you are personally responsible for the damages that exceed $25,000.00. Therefore, it is important to consult with an insurance professional to determine the proper amount of insurance for your particular situation.

How Much Insurance Do You Need?

The above examples discuss covering an individual that is injured due to your fault. In a situation where you are injured due to the fault of others, it is important to have coverage that protects you from uninsured and underinsured motorists. Unisured and underinsured motorist coverage will pay for damages, if the at-fault driver does not have insurance or does not have enough insurance to compensate you for your damages. Collision coverage is another option to consider. If your vehicle is damaged, as a result of a collision, collision coverage will pay for the repairs to the vehicle.

Shopping for Car Insurance

You can purchase insurance from an insurance broker or an independent agent. A broker can shop a number of different insurance companies to find the best insurance that meets your needs. An independent agent sells insurance on behalf of just one company, i.e. Allstate, State Farm, etc. Generally speaking, an insurance broker’s loyalty is to you, while an independent agent’s loyalty is to the company it represents. It is highly recommended to stay away from “sub-standard insurers.”

Questions? Contact Our Automobile Collision Injury Lawyers

If you’ve recently been in a car accident and have questions about your insurance coverage or injuries, contact Theisen & Roche. Our Chicagoland attorneys have decades of experience in personal injury cases and want to help you get the compensation you deserve. Call 24/7 at (888) 845-7241, or get a free case evaluation through our online form.