Auto insurance is a contract between two parties, the policyholder, and the insurance company. The terms of the contract state:
- The policyholder is responsible for paying the premium, and
- The insurance company is responsible for compensating for losses as defined by the policy
Auto insurance provides coverage for property damage, medical expenses, and liability.
Illinois, along with most states, requires drivers and vehicle owners to have liability insurance before the car can legally be driven on the road. All states set limits on the minimum amount of liability insurance owners and drivers must pay for any harm caused to people or property when they are found to be responsible for causing an accident.
An auto insurance policy in Chicago is comprised of different coverage’s, each of which is priced separately.
Bodily Injury: This insurance covers those injured by the policyholder or his or her family. Drivers usually opt to purchase more than the state-mandated minimum as serious accidents often result in large claims and settlements.
Medical Payments: This insurance covers any treatment of injuries to the driver or passengers in the policyholder’s vehicle. Personal injury insurance covers medical expenses. Depending on the policy, it can also compensate the injured party for lost wages and funeral expenses.
Property Damage: This insurance pays for damage done to someone else’s property. This insurance covers damage to someone else’s vehicle as well as utility poles, fences, buildings, and other structures.
Collision: This insurance pays for repairing the damage done to the policyholder’s vehicle when in a collision with another vehicle. Collision insurance usually specifies a deductible, the amount the policyholder is responsible for. The cost of collision insurance is lower when the deductible is set at a higher amount.
Comprehensive: This insurance covers loss due to theft or damage caused by something other than a collision with another vehicle. Collision and comprehensive insurance is not required but is often specified if the vehicle is leased or not yet paid for.
If you need auto insurance, it is readily available in Chicago. You are invited to discuss your insurance needs with Accurate Auto Insurance. For an instant quote, visit https://www.accurateautoins.com.