PERSONAL AUTO INSURANCE
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Some common questions about
Auto Insurance

Do I have to buy auto insurance?
In most states, including Illinois, the answer is yes. You must carry automobile liability insurance before you can legally drive a vehicle. You can also buy physical damage coverage, but the law does not require it, though if you have a loan on the vehicle, the lender will likely require that this coverage be purchased.

What are the different types of insurance coverage listed on my policy?
Your policy may contain coverage for the following types of risks.

Bodily Injury Liability – This coverage applies to injuries that you, the designated driver or policyholder, cause to someone else. You and family members listed on the policy are also covered when driving someone else’s car with their permission. It is very important to have enough liability insurance, because if you are involved in a serious accident, you may be sued for a large sum of money. We will always recommend buying higher than the state required limits in order to protect your assets, which can include property owned and possibly even future income. The limits are usually listed as so much per person and so much per accident ($300,000 per person, $500,000 per accident). This means that the most they would pay per person is listed and they will not pay more than the per accident amount no matter how many people are injured.

Property Damage Liability - This coverage pays for damage you (or someone driving the car with your permission) may cause to someone else’s property. Usually, this means damage to someone else’s car, but it also includes damage to lamp posts, telephone poles, fences, buildings or other structures you car damages.
Medical Payments – This coverage pays for the treatment of injuries to the driver and passengers of the policyholder’s car. Even if you have good health insurance, this coverage is important because it may help cover deductibles or if a passenger in your vehicle doesn’t have adequate health insurance, this would help with any necessary medical expense, including funeral, that may result from an accident.

Uninsured and Underinsured Motorist Coverage – This coverage will reimburse you, a member of your family, or a designated driver if one of you are injured by an uninsured driver. Underinsured motorist coverage comes into play when an at-fault driver has insufficient insurance (those that may carry the state minimum for instance) to pay for your total loss. This coverage will also protect you if you are injured as a pedestrian.
The limits for all of the above coverage’s are usually the same for all vehicles listed on the policy.

Comprehensive (also known as Other Then Collision) – This coverage reimburses you for your loss due to theft or damage caused by something other than a collision with another car or object. Such claims include fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot or contact with animals such as birds or deer. This coverage usually has a deductible, which is the amount that you agree to pay before the insurance will pay anything. The higher your deductible, the lower your premium. You can have different deductibles on each vehicle.

Collision – This coverage pays for damage to your car resulting from a collision with another car, object or a result of flipping over or going into a ditch. It also covers damage caused by running into something in the road, such as a tree limb or a pothole, as well as getting backed into in a parking lot (hit and run). This coverage usually has a deductible, which is the amount you agree to pay before the insurance company will pay anything. The higher your deductible, the lower your premium. Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible. If you are not at fault, your insurance company may try to recover the amount they paid you from the other driver’s insurance company. If they are successful, you will also be reimbursed for the deductible. You can have different deductibles on each vehicle.

Other options are available such as
o Towing/Road Trouble Service – This will generally reimburse you for the expense of having your vehicle towed due to mechanical breakdown, up to a listed amount.
o Rental Reimbursement – This coverage reimburses you up to an agreed amount for renting a vehicle while yours is being repaired due to damages suffered in a covered loss.
o Extended non-owned– If you drive a company vehicle, or have a vehicle furnished and available for your regular use, this may be a good coverage to have. Even though the company that owns the vehicle may have coverage on the vehicle, this would extend your liability coverage to you as the driver of the vehicle. This coverage would be secondary to any coverage on the vehicle itself.

So now that I know what the coverage’s mean, how much coverage do I need?
For liability insurance, there is not definite answer to this question, but keep in mind in making your decision that if you are found legally responsible for damages that are more than your insurance covers, you will have to pay the difference out of your own pocket. These costs could be very devastating. This is why we recommend purchasing the highest limits that you can afford the premium for and that you feel would cover your assets in case of a loss. We also recommend carrying a Personal Umbrella policy, which is discussed later.

For physical damage coverage, you do not select how much coverage to buy but how much of a deductible you are willing to pay before the insurance will pay for a loss. The coverage for the vehicle will be reflect the market value at the time of the loss (you can look this up at www.kbb.com) and the amount it will cost to repair the vehicle. The higher the deductible you select the lower your premium will be. Most people will choose a lower deductible for their comprehensive coverage since these are usually things that you have little control over and then have a higher deductible on their collision coverage since this type of claim is usually less likely to occur.

If I have a claim or am involved in an accident, what do I do?
At the scene of the accident you should call the police so that they can make out a report, gather as much information from the other party as possible and most importantly never admit guilt or imply that you will pay for the damages.

Call our agency as soon as possible after the accident. Our toll free number is 1-888-750-2221 or our regular number is 309-286-2221. You can then talk to one of the agents at our office and we will guide you thru the claim process. That is what we are here for. If it is after normal business hours, you can still call the same number and dial 1 and leave a message and then the agent on call will call you back as soon as possible and work with you to make the claim go as smoothly as possible.

Will my insurance rates go up if I am involved in an accident or get a ticket?
It is very possible that your rates may go up depending if the accident is your fault or not. If you get a ticket for a traffic violation, your rates may depend on the severity of the ticket and if it is your first one. You can also lose your insurance at the next renewal if you receive a serious ticket such as for Driving Under the Influence.

How does my credit score affect my premium?
Because studies have shown that people with good credit tend to be more responsible and have fewer claims, companies now consider your credit when determining the rate of your premium. The better your credit score, the better your premium.

If you have other questions about auto insurance, just call us. That is what we are here for. We take pride in working with you to make sure that all of your questions are answered.

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