Automobile Insurance Coverage
An auto insurance policy is a contract between you and an insurance company. You pay the premium, and in exchange, the insurance company agrees to pay for car-related financial losses during the term of the policy. Auto insurance requirements vary by state.
What are the common auto insurance coverages?
Below are some simplified descriptions of common auto insurance coverages. All coverages are subject to the limits, terms and conditions of the actual policy you purchase.
Bodily injury liability coverage generally pays damages for bodily injuries to the driver and passengers of the other vehicle or pedestrians when you are responsible (at-fault) for the accident. It also provides coverage to defend you in case of the lawsuit filed against you related to an auto accident.
Property damage liability coverage generally pays for the damage to another person’s property (vehicle, home, fence etc.) when you are responsible for the accident. It also provides coverage to defend you if you are sued because of an auto accident.
Medical payments coverage generally covers you and your passengers for medical expenses that result from injuries sustained in an auto accident. It also covers you as a pedestrian if you are hit by the vehicle.
Uninsured or underinsured motorist bodily injury coverage generally pays for bodily injuries to you and your passengers when caused by the other vehicle in an auto accident and the person legally responsible either has inadequate or no insurance.
Collision coverage generally pays for the damage to your car up to fair market value in case of an accident (colliding with another vehicle, hitting the tree, obstacle on the road, property). A deductible applies to this coverage.
Comprehensive coverage generally pays for the damage to your car if it is stolen or damaged by certain causes other than collision, such as fire, theft, hail or vandalism. A deductible applies to this coverage.
Roadside Assistance pays for reasonable towing and required labor costs at the site of breakdown when your auto is disabled. The coverage limit may vary depending on the insurance carrier.
Rental Coverage pays for rental vehicles while your vehicle is disabled, in the body shop for repairs from collision or comprehensive loss. In case of the total loss – pays for rental vehicles until the claim is settled. The coverage may vary depending on the insurance carrier.
Additional Auto Insurance Information:
- Illinois Auto Insurance Information and Resources (The Illinois Department of Insurance)
- Illinois Auto Insurance Details and Resources (DMV)
- Please contact our agency for more information at 708-433-7777
FAQ
Choose coverage based on your household needs, risk level, and budget. The right policy helps protect you and your family after an accident.
Yes. Higher income and assets increase financial risk in a liability claim. Higher liability limits can help protect what you own.
Yes. Your car’s year, model, mileage, and value matter. Leased or financed vehicles usually require full coverage.
A deductible is what you pay out of pocket before coverage applies. Higher deductibles lower premiums. Lower deductibles raise them.
If you do not have health insurance, medical payments coverage can help pay medical costs after an accident.
Yes. Teen drivers have higher risk.
Higher liability limits can provide added protection.
