Auto insurance is non-negotiable if you’re planning to drive in Illinois. The question is which among the options should you choose? Websites such as Oxford Auto Insurance can provide you with suggestions. As the policy owner though, you must also know them.
Comprehensive Auto Insurance
Contrary to popular belief, comprehensive car insurance isn’t mandatory. But it doesn’t mean you don’t need it. It protects you and your vehicle from any damages not caused by a collision. These can include weather conditions, natural disasters, and theft. For example, a thief may have broken your windshield while trying to steal your laptop. You can then claim against your policy for the windshield repair.
This insurance usually includes a deductible. It’s the amount you pay out of your pocket before the insurance policy kicks in. Claiming one can reduce your premiums.
Liability Auto Insurance
This one is mandatory, and the coverage depends on the state. If you’re in Illinois, it’s $25,000 minimum for bodily injury for each person. Property damage is $20,000. The minimum requirement per accident is $50,000. These amounts are also what you need if you have an underinsured or uninsured coverage.
Underinsured and Uninsured Auto Insurance
These two are different. Underinsured coverage helps if the motorist at fault doesn’t have enough insurance. For example, the coverage for bodily injury is only $20,000 instead of $25,000. Meanwhile, the uninsured auto insurance is necessary if the motorist at fault doesn’t have any coverage to begin with. Illinois makes it mandatory for you to have both.
Collision Auto Insurance
The use of the word “collision” here can be confusing. It doesn’t mean meeting a crash with another vehicle. Rather, it’s hitting another object such as a lamp post, a railing, or a fence. Should you sustain damage to your car, you can use this insurance.
Is SR-22 an Insurance Coverage?
The answer is no. Rather, it’s a legal document that proves your insurance has met the required minimum liability. The DMV may need you to have one if you have a bad driving record. For example, your license has been suspended before, or you have a prior conviction. The insurance company processes it for you once you apply for coverage.
Your auto insurance choice depends on what you need. Either way, don’t short-change yourself to avoid complications later.