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It is
very important that you consult with your agent to determine the
best coverage for you. Depending on your vehicle, age, driving
record, income and many other factors, the right coverage will
vary.
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Disclaimer:
This information is intended to provide a brief overview of
insurance coverage, and is not a substitute for reading the
details of your insurance policy and/or consulting with an
agent
| 1. |
What
does liability coverage mean? |
| 2. |
What
does collision and comprehensive coverage mean? |
| 3. |
My car insurance seems expensive. How can I reduce
the cost? |
| 4. |
When
comparing homeowners policies, what should I look at other
than the limit on my house? |
| 5. |
If
I have an office in my home, does my homeowners policy provide
the coverage I need? |
WHAT DOES LIABILITY COVERAGE
MEAN
Liability coverage protects you from lawsuits
in the event you are involved in an accident. This coverage
provides protection even if you are driving another person's
vehicle. There are three main types of Liability coverage:
Bodily Injury
Bodily Injury
coverage is typically sold as split limits, a limit for each
passenger and an overall limit for the accident. For example,
if you elect to purchase $100,0000/$300,000 coverage, you have
the following coverage maximum payouts in the event of an
accident:
$100,000 maximum payment to any
individual involved in the accident
$300,000 maximum
payment for all individuals involved in the accident.
The minimum limits for BI vary by state and it
is suggested that you purchase $100,000/$300,000 unless you
are a non-standard driver that has very expensive insurance
rates. Always check with your insurance agent about the risks
associated with purchasing lower or minimum liability limits.
Medical or Personal Injury
Protection (PIP)
This coverage provides protection for
medical and/or funeral costs for you in the event of an
accident. States are either Medical states or PIP states
depending on their state law. Please check with your agent for
a complete description on medical coverage and its relation to
other existing health/life coverage you may have.
Property Damage
As the name
implies, property damage protects you from any damage
resulting to a person's car, or other property in the event of
an accident. For example, if you purchase $100,000 of Property
Damage, the maximum amount paid for damage to other
individual's property would be $100,000 for the accident.
Uninsured/Underinsured
Motorist
Uninsured Motorist provides coverage for you
in the event the other driver does not have insurance at all.
Underinsured Motorist provides liability coverage for you in
the event the other driver does not have enough insurance
coverage.
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WHAT
DOES COLLISION AND COMPREHENSIVE COVERAGE
MEAN?
These two coverage options provide
compensation for damage inflicted to your vehicle in the event
of an accident. Collision provides coverage in the event of an
accident. Comprehensive provides coverage in the event of car
damage from other perils such as storms, theft, and some other
non-accident damage inflicted to your car.
Comprehensive and Collision are sold with
deductibles. A deductible is the amount you pay first. After
the deductible has been reached, the insurance coverage
provides payment for the additional amount of
repairs/replacement needed. A typical deductible for
Comprehensive and Collision is:
$100
Comprehensive
$250 Collision
It is very
important that you consult with your agent to determine the
best coverage for you. Depending on your vehicle, age, driving
record, income and many other factors, the right coverage will
vary.
Disclaimer: This information is intended
to provide a brief overview of insurance coverage, and is not
a substitute for reading the details of your insurance policy
and/or consulting with an agent.
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to Top
MY CAR
INSURANCE SEEMS EXPENSIVE. HOW CAN I REDUCE THE
COST?
Auto insurance rates in Illinois are actually
some of the lowest in the nation. Only 9 states have lower
rates than we do. However, there are still tools you can use
to reduce your costs. A few things to consider include:
Vehicle Choice - Premiums vary
by vehicle - some are theft targets or expensive to repair.
Check the insurance rates before you make a purchase.
Deductibles - Choosing higher
comprehensive and collision deductibles can reduce premiums.
Collision Coverage - As your
vehicle ages and the value declines, it might be a good idea
to drop collision coverage to save money.
Account Credit - Many companies provide
discounts if your home and auto are insured together.
Ride Share - If you commute,
look into ride share vans or alternatives to driving to work
every day. Decreased usage may translate into a lower rate
class.
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WHEN
COMPARING HOMEOWNERS POLICIES, WHAT SHOULD I LOOK AT OTHER
THAN THE LIMIT ON MY HOUSE?
There are many features
within a homeowners policy that will make it different than
another. In addition to the limits shown on the front of your
policy (dwelling, contents, liability, etc.), you need to dig
into the policy language to see how your policy addresses
things like:
- Backup of Sewer or Drains - the basic
homeowners policy does not cover this, but many offer it as
an option or enhancement.
- Wind damage to trees - if you have a
tree blown down on your home, most policies will pay for the
cost to remove it. However, if the tree is just downed in
the yard, some policies will cover the removal - others will
not.
- Cost to Replace your Home - Virtually
all homeowners policies provide replacement cost coverage
(not depreciated) up to the home value shown on the policy.
What if your cost to rebuild exceeds that limit? Many
companies offer endorsements to allow some "excess coverage"
to allow for situations where the cost to rebuild exceeds
the home value shown. While you should try to insure at the
full cost to rebuild, these endorsements take the burden off
of you to make sure that you are aware of every change in
building costs over time.
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If I
HAVE AN OFFICE IN MY HOME, DOES MY HOMEOWNERS POLICY PROVIDE
THE COVERAGE I NEED? Probably not, unless you address
a few items specifically.
Be sure to address any
business activity with your agent. There are many gaps in both
the property and liability coverage under the homeowners
policy, relative to the business. Your policy may exclude any
detached structures, such as a garage, that are used for
business purposes, including storage of materials. Contents
coverage for business personal property is usually limited to
$2500 at home or $250 away from home. Liability coverage for
business activity is generally excluded.
Many of
these items, however, can be addressed by many homeowners
policies as in-home businesses become more common. Coverage
for contents, business computers and data and liability can
often be added to the homeowners policy or be provided by a
companion policy.
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