Auto Insurance basics

by ERIC SOTIUSO

The state of Illinois requires vehicle owners to have auto insurance coverage. If you have auto insurance or are considering buying some, you��ll need to know how much and what types of coverage are recommended.

Auto insurance is a contract between you and your insurance company. In this contract you agree to pay a certain amount of money for a certain amount of protection from the insurance company. The policy you receive from your insurance company will list the terms and conditions that are agreed upon. Your policy should be reviewed from time to time as changes in coverage may be required.

Bodily injury and property damage are components of liability coverage. Liability coverage is required in the state of Illinois. You may be responsible for all or some of the damages if you cause an accident. Liability coverage will help protect you from lawsuits by providing coverage to individuals that were injured due to your negligence. The amount of coverage that you choose is mainly up to you aside from any state required minimum. Common recommended limits are $100,000 per injured person and $300,000 per accident.

Collision and comprehensive make up another type of coverage you may want to consider. Collision covers your auto when you hit an object. Comprehensive covers your auto against other types of damage not related or covered by collision. Both collision and comprehensive can help limit your out of pocket expenses should something happen. Be sure to compare and evaluate the resale value of your vehicle and cost of the premium to decide if this coverage is for you.

Deductible is the amount of money that you pay out of your own pocket if there��s an accident. A higher deductible will save you money on the cost of your premium. Just remember, if you get into an accident, you need to pay the deductible amount before the insurance company pays.

Exclusions are an important part of your policy that you should read and understand. Conduct that is intentional, reckless or in disregard of the law may not be covered by your insurer. In this case you��ll be responsible for paying the bills for both you and the injured party.

Filing a claim in a timely manner is very important. Your insurer will have you fill out a report stating what happened in the accident. Filing a claim for property damage will require you to get an appraisal. If you are injured, you will be required to get a physical exam. If you do not notify your insurance company of an accident in a timely manner

For more information, please visit Chicagolandauto.com http://www.chicagolandauto.com.