Liability insurance is required by Illinois law. It pays for another person's crash-related injuries and property damage if the insured driver is legally responsible for the accident. People often need higher liability limits to protect their financial assets than state-required minimums.

Physical damage provides comprehensive and collision coverage on the policyholder's vehicle. Comprehensive covers damage caused by events like theft, vandalism, hail and animal hits. Collision pays for damage to the insured vehicle caused by crashing into another car or fixed object. Both have deductibles. High deductibles lower the cost of insurance, but require the policyholder to pay more out-of-pocket when a loss occurs.

It is best to match uninsured and underinsured coverage limits with bodily injury limits.

Before an accident occurs it is important to:

• Verify which policy coverages apply to each insured vehicle.
• Confirm the policy properly insures everyone in the household.
• Adjust liability limits and deductibles to fit your needs.
• Add extra coverages like towing, rental car or gap insurance.

Loss settlement terms and policyholder duties are outlined in the insurance policy. Among these requirements are notifying the insurer when an accident occurs and cooperating in a claim investigation. Check the insurance policy for additional loss settlement details.