A Bird's Eye View on Buying Auto Insurance
Since auto insurance is mandatory in Illinois, The Margolis Firm believes you should make sure that your paid premiums guarantee the compensation you would expect for any future loss.
Let your fingers do the walking. Call and compare apples with apples. Consider and discuss the following:
Liability: Personal Injury - The primary question when buying auto insurance is: how much coverage do you need? Illinois requires $20,000 per person and $40,000 per occurrence. Is that enough coverage for you? This is a split limit coverage. It is the minimum. Therefore, if a person is seriously injured in an accident, $20,000 is the limit for that person's medical expenses, rehabilitation, lost income disability, pain and suffering. Ask yourself, if you were injured through another's negligence, how much coverage would you want that person to have?
Uninsured & Underinsured - In addition to purchasing insurance that protects the other person, it is also important to purchase insurance that protects you and your family when injured by a motorist who is either uninsured or under-insured. If your liability coverage is $100,000/$300,000, you are entitled to uninsured and underinsured coverage in the same amount. For your family's sake, you should consider this; because too many drivers are either uninsured or carry minimum coverage. The premium paid is usually small in comparison to the coverage received.
Medical Payments - Coverage for medical payments is another important consideration. It is usually sold without a deductible and covers, without fault, doctor and hospital bills up to a stated limit.
Collision - Collision is very important coverage for new cars. Lenders require that you carry this coverage. It is usually one of the more costly components of auto insurance coverage. The cost of collision can be lowered significantly by raising your deductible. Small deductibles are usually the reason why a premium is so high. Ask about $250 or $500 deductibles. You will be surprised by the difference it makes.
Comprehensive - Comprehensive coverage also has a deductible. If you keep the deductible high, you significantly lower your premium. Consider, "What do I want to insure and what do I want to insure against?" Comprehensive applies to theft, fire, flood, riots, earthquakes, falling trees, etc. It accounts for more than 10% off your premium.
Extras - Based on experience, do you want to add auto membership club, rental insurance, towing and labor to your premium? Having decided on your coverage, look at the extras.
Money Saving Tips
Why pay more when you can pay less?
Drop collision if your car is old, but remember, even a four or five year old car can be worth more than $10,000.
Drive your car less. Ask if driving less makes a difference.
If you have a sporty car, drive it even less. A back seat in a sporty car can save you significant premium increases.
Be wary about installment payments. Pay either annually or semi-annually. It is usually cheaper. "Low rent" insurance companies like monthly payments. It increases the possibility that your payment will be late and coverage will expire.
Put all members of your family living with you on the same policy.
Discounts
After you have decided on two or three companies ask about: auto/homeowners package; multi-car coverage; good driver credits; mature driver credits; safety belt, air bag, and anti-lock brake credits; good student and student-driver training credits. These are ways to achieve discounts, there are more available. Ask and compare.
Important Reminders
Total cost of premium is only one factor in considering which auto insurance to purchase. How your claims are handled is just as important. Experience has shown us that too often you pay for much more than you get. Ask your friends and relatives what their experience has been with their insurance company. Keep in mind that it is seldom worth it to change companies to reduce your premium by a small amount.
If you have a specific legal question or need additional information, please call Jordan Margolis at (312) 236-2201.
