Auto Insurance Basics
Auto insurance is there to protect you and your loved ones against economic loss if you were to have an accident. Some people think that auto insurance is just a commodity, but it isn't.
Most drivers do not realize the importance of having adequate insurance limits until after they get into an accident. We know saving money is important but cutting corners on your auto insurance coverage could cost you more in the long run if you have an accident and then are sued by the other party that is involved.
There are ways to keep your auto insurance costs down. Here are a few we'd like to mention:
- Your driving record
- Type of vehicle you drive
- Low mileage
- Vehicle use (personal or business)
- Having your home, condo, apartment insurance policy with the same carrier
- Paying your auto insurance premium in full
- If you have children and they have a "B" average or better or they are away to college
- Taking a defensive driving course
As your car insurance agent, we will look for these discounts because it is our job to make sure you have the best protection at the lowest premium available.
There Are Six Necessary Coverages in an Auto Policy
Auto insurance is made up of six necessary coverages, that we will discuss below in detail:
- Bodily Injury Liability: This insurance coverage helps cover your costs associated with injuries or property damage to others resulting from a car accident you cause. In the state of Illinois, your liability insurance must have the following minimum coverages: $25,000 for bodily injury per person. $50,000 total for bodily injury per accident. $20,000 for property damage. Higher limits are available. Liability insurance does not cover your own costs for personal injuries or property damage.
- Property Damage Liability: This covers the cost of any damage that your vehicle causes to the other parties' property. This usually refers to the other vehicle involved in an accident, it will include houses, garages and anything else that counts as property.
- Collision: Coverage that is for any damage done to your car when it collides with another car or other objects.
- Comprehensive: Covers any damage to your car resulting from something other than a collision with another car. Examples of this would include hitting a deer, damage from a vandal or a tree falling onto your car. It also includes coverage for theft.
- Medical Payments: This coverage pays medical and even funeral expenses for you as well as members of your family and passengers in your car if it is involved in an accident, regardless of who caused the collision. It will also cover you as a pedestrian if a vehicle hits you.
- Uninsured/Underinsured Motorist: This will pay for injuries to you and damages to your car if you are hit by a driver who does not have insurance, or by a driver who does not have enough insurance to cover your losses. In some states, as many as three out of ten drivers do not have insurance coverage.
Towing coverage and rental reimbursement coverage are additional insurance coverage options you can purchase as well. Towing coverage will help pay the costs if your car needs to be transported after an accident. Rental reimbursement coverage will help pay for a rental car while your car is getting repair. (If the accident wasn't your fault, this cost is automatically picked up by the other driver's insurance company.) While these coverages are not mandatory, they could come in handy if you were to get into an accident. The car insurance experts at Frimark/Keller & Associates can help determine the coverage you need.
Who Is Covered When You Buy An Auto Insurance Policy?
All coverage on your auto policy will be applied when you are driving and they also will be applied when other people are driving your vehicle. The coverages are for the car, not the person. If someone else is going to be driving your car on a regular basis, that person needs to be added to your car insurance policy.
Your insurance company wants to know who is going to be using the car. You could be a great driver with no tickets or accidents, but your spouse or your child could be a bad driver. If you continue to let these people drive your car without telling your insurer and they continue to get into accidents, your insurance carrier could cancel your policy. Keep in mind that if you add drivers with bad driving records or do not have much driving experiences, your auto policy premiums will go up.
Teenagers are inexperienced drivers; they might get tickets or get into accidents. When your child gets his or her license, your insurance premiums will go up when you add them to your policy. There are ways to give your auto premiums a break if your son or daughter has a "B" average in school, if they take a driver training course, or if they are away to college without a car. The auto experts at Frimark/Keller & Associates are here to talk over your options and help get you the best protection at the best price.
Frimark/Keller & Associates Work For You
As independent agents, Frimark/Keller & Associates can provide you with hundreds of combinations of coverage from several different A+ Rated insurance carriers. We are not limited to just one insurance company, please contact us today at 847-907-4520! As your independent insurance agent, we will provide a free, written analysis of the best coverage at the lowest premium possible.
Call 847-907-4520 or fill out the form at the top of the page for a quote today!