– Pays for bodily injury to another person or property damage you cause due to the negligent operation of a vehicle. It may also pay if the accident was caused by a member of your family living with you or a person using your vehicle with your permission. The coverage may also pay for a legal defense if you're sued because of the accident. Liability coverage is often split into two separate coverages:
Consider buying higher limits. State minimums may not be enough to fully protect you from lawsuits.
Covers you for your bodily injury caused by a hit-and-run driver or an at-fault driver who has no auto liability insurance. Currently, Illinois law requires uninsured motorist limits of $25,000 per person and $50,000 per accident. For additional premium, you may buy higher limits to pay for claims that exceed those amounts.
Pays the difference between your UIM limits and the liability limits of the at-fault driver, if lower than your UIM limits. Illinois law requires this type of coverage if you purchase higher limits of uninsured motorist bodily injury coverage (UM).
If you have borrowed money to buy your vehicle, the bank may require you to also carry comprehensive and/or collision coverages to protect their financial interest in your vehicle. Depending on the age and value of your car, those coverages may not be beneficial. If your car is older, the premiums for comprehensive and collision coverage may cost more than the car is worth. Generally, you can expect to double your insurance premium if you add these coverages to your policy.
Factors That May Affect the Premium
Rating factors are characteristics that place you in a group of drivers with similar risk-related characteristics. Companies set a rate for each group based on the claims paid for the people in that group.
Here are some tips that may lower your insurance premiums
Keep a clean driving record. Drivers with accidents and tickets usually pay higher premiums than those with good driving records. For example, if you have more than one at-fault accident in less than three years, or if you are convicted of a moving violation, your insurance company could raise your premiums or non-renew your insurance policy. If your driver's license is suspended or revoked, your insurance company can cancel the policy. If you are under your parents' policy, your driving record will affect their insurance policy.
Choose your vehicle carefully. Certain vehicles cost more to insure because they're more likely to be damaged in an accident, cost more to repair, or are frequently stolen. If you have a sports car or a high performance car you may have a hard time finding insurance at standard rates. And if your car is a "street machine" or is "souped-up," there's an even greater chance that you'll pay a lot more for your insurance.
Drive a vehicle with safety features. Some companies offer a discount for such items as air bags, automatic seatbelts, and anti-lock brakes.
Maintain good credit. Many companies assess your credit information and may charge higher premiums depending on your credit information.
Ask about discounts.
Keep your grades up. Some companies offer a discount to young drivers who maintain a "B" average or better.
The type and amount of discounts offered may vary by company. Some discounts affect a portion of your coverage; other discounts may affect the entire premium.Take the highest deductible you can afford. I
f you raise your deductible, you may be able to significantly lower the price of coverage; but you will pay more out of pocket each time you have a claim.Consolidate your insurance needs.
If you need more than one type of insurance (such as auto and renters insurance), you may be able to obtain a discount by having one insurance provider for all of your coverage.Maintain a good driving record.
Moving violations and accidents may result in higher premiums. Be a law-abiding and defensive driver.Choose your vehicle carefully.
Some vehicles are more costly to insure than others. Contact your insurance producer or company before you make a final decision.
Insurance Terms You Should Know
Bodily Injury Liability – Insurance that pays for another person's bodily injury or death in an Auto accident that you caused.
Property Damage Liability – Insurance that pays for damage you cause to someone else's property in an Auto accident.
Medical Payments – Insurance that pays the medical and funeral expenses, up to the limits purchased, for you or any passengers riding in your car at the time of an accident. Medical payments will provide coverage whether you or someone else caused the accident.
Collision – Insurance that pays for damages to your own car if it is involved in a collision, regardless of who is at fault. Collision coverage may carry a deductible – a stated amount that you must first pay out of your own pocket.
Comprehensive – Insurance that pays for non-collision losses to your car such as fire, theft, flood, hail, vandalism, glass breakage, and falling objects. Comprehensive coverage may also carry a deductible. (Note: if your car hits an animal, some insurance companies will treat it as a collision claim, while others will treat it as a comprehensive claim.)
Uninsured Motorist Bodily Injury – Insurance that pays for bodily injury or death to you and your passengers if an uninsured driver strikes your car. This coverage does not pay for damages to your car. If you do not have collision insurance, you may purchase uninsured motorist property damage coverage. This coverage offers very limited protection and should be discussed with your insurance producer/agent.
What You Should Do if You Have an Accident
- Get medical help for anyone who may be injured.
- Call the police and follow their instruction. If you are in an unsafe area, you may relocate to the nearest police station or public place and then call the police.
- Get names, addresses, telephone numbers, and insurance information of anyone involved in or witnessing the accident.
- Call your parents or guardian and tell them what has happened and where you are located.
- Notify your insurance producer/agent or insurance company.
Keep the following information in a safe place in your vehicle for ready reference in the event of an emergency:
Insurance Company: _______________________________
Policy #: _________________________________________
Agent's Name: ____________________________________
Agent's Phone #: __________________________________
Police Dept. Phone #: ______________________________
Towing Company: _________________________________
Towing Co. Phone #: _______________________________
If you're in an accident with another driver, don't forget to ask:
Driver's Name: ____________________________________
Driver's Address: __________________________________
Driver's Phone #: __________________________________
Insurance Card Information: __________________________
Witness's Name: __________________________________
Witness's Address: ________________________________
Witness's Phone #: ________________________________
If You Can't Find Auto Insurance