- Liability insurance is required by law. It pays when the insured driver is legally responsible for another person's damages.
- Minimum liability limits in Illinois are $25,000/$50,000 for bodily injury, and $20,000 for property damage. Choose a liability limit that adequately protects your financial assets.
- Auto policies must include uninsured motorist bodily injury (UMBI) coverage. This pays the insured's injury-related damages like medical bills, lost wages or pain and suffering due to an accident with an uninsured driver. It is best to match bodily injury and UMBI limits.
- Underinsured motorist bodily injury (UIMBI) pays when the at-fault driver has lower bodily injury limits than the insured's UIMBI limit. It is best to match bodily injury and UIMBI limits.
- Physical damage is split into two coverages (comprehensive and collision) that pay for damage to your insured vehicle. This is optional, but lenders insist on it.
- Comprehensive pays for losses like windshield chips, vandalism, theft and hitting a deer. Most policies have a comprehensive deductible.
- Collision pays to repair the insured vehicle following a crash with another car or fixed object. This coverage has a deductible.
- Auto insurers offer a variety of endorsements that expand coverage for an additional cost. Among these are rental reimbursement, towing, gap coverage for leased or financed vehicles, custom or non-factory equipment, uninsured motorist property damage coverage and more.
- Filing a claim with your own insurance company is called a first-party claim. Review the policy's 'Loss Settlement Provisions' for more about the claim settlement process.
- Requesting damages from another person's insurance company is called a third-party claim. These claims are settled according to policy terms between the other person and their company.
