Illinois-issued auto policies are required to include the following:
Liability Insurance - pays for bodily injury to another person or property damage you cause due to the negligent operation of a vehicle. It may also pay if the accident was caused by a member of your family living with you or a person using your vehicle with your permission. It does not pay for your bodily injury or damage to your vehicle.
Currently, Illinois requires liability insurance limits of $20,000 to any one person for bodily injury, $40,000 total for all bodily injuries resulting from the accident and $15,000 total for property damage, excluding your own vehicle. You should consider buying higher limits because the state minimums may not be enough to fully protect you from lawsuits.
Uninsured Motorist Bodily Injury Coverage (UM) - covers you for your bodily injury caused by a hit-and-run driver or an at-fault driver who has no auto liability insurance. Currently, Illinois law requires uninsured motorist limits of $20,000 per person and $40,000 per accident. For additional premium, you may buy higher limits to pay for claims that exceed these amounts.
Underinsured Motorist Bodily Injury Insurance (UIM) - pays the difference between your UIM limits and the liability limits of the at-fault driver, if lower than your UIM limits. This coverage is required by law if you purchase higher limits of uninsured motorist bodily injury coverage (UM).
Medical Payments - covers medical and funeral expenses for you or your passengers if injured or killed in an accident in your vehicle. Also covers you and your family members if struck by a vehicle while walking or riding in another vehicle. This coverage pays even if you cause the accident. Medical payments coverage may be required by your auto insurance company.
Physical Damage Insurance - contains two separate types of insurance: Collision Coverage - pays for physical damage to your vehicle if it collides with another object; Comprehensive Coverage - pays for damage to your vehicle from most other causes, such as theft, fire, hail etc. This coverage may be required by your lender if you have a loan on your vehicle.
In addition to required coverages, you can also buy optional coverages for extra premium.
Uninsured Motorist Property Damage Insurance (UMPD) - covers damage to your vehicle caused by an identified, at-fault, uninsured driver. This option is only offered if you choose not to purchase collision coverage.
Towing Coverage - pays a portion of the costs to tow your disabled vehicle to a repair shop.
Rental Reimbursement Coverage - pays a specific amount per day (e.g. $15) for you to rent a vehicle while your vehicle is being repaired due to a covered loss.
Custom/Non-factory Equipment Coverage - covers customized features such as those found on conversion vans, as well as specific non-factory items such as tape decks, cellular phones or CB radios.
Rating factors govern what you pay for auto insurance.
Rating factors are characteristics about you that place you in a group of drivers with similar risk-related characteristics. Companies set a rate for each group based on the claims paid for the people in that group. The higher the losses for a specific group, the higher the rates for that group.
Some rating factors are completely beyond your control (e.g. age and gender). Some are difficult to control due to lifestyle choices (e.g. residence location and vehicle usage). Other rating factors are completely within your control (e.g. driving record and type of vehicle insured).
These rating factors will affect the price you pay for auto insurance:
Driving Record - claims and traffic violations for the past 3 - 5 years for any driver who will be covered by the policy. Drivers with previous claims or violations may pay higher premiums than those with good driving records.
Age, Sex and Marital Status - statistics show that males still have more accidents than females, teenagers are more likely to have accidents than adults and single people have more accidents than married people. The higher the risk, the higher the premiums.
Location - since heavily populated cities have more traffic, thefts and vandalism, drivers in these areas may pay higher premiums than groups in rural areas.
Type of Vehicle and Vehicle Use - some vehicles cost more to insure because of higher claims frequency and/or higher repair costs.
Multiple Vehicles - given when all vehicles in your household are insured by the same company.
Defensive Driver - given to drivers over age 55 who have passed an approved defensive driving course.
Safety Devices - given for items such as air bags, automatic seat belts and anti-lock brakes.
Anti-theft Devices - given on your comprehensive coverage for devices that deter theft or vandalism.
Good Student - given for young drivers who maintain a B average or better.
Good Driver - given to policyholders who maintain good driving records.
Auto/Home Packages - given if you buy your auto and homeowners policies from the same company.
Maintain a Good Driving Record - moving violations and accidents usually result in higher premiums. Be a law-abiding and defensive driver.
Take the Highest Deductible You Can Afford - insurance is meant to protect you from the financial consequences of major losses. By raising your deductibles, you may be able to significantly lower the price for physical damage coverage, but you will pay more out of pocket each time you have a claim.
Choose Your Vehicle Carefully - some vehicles are more costly to insure than others. Contact your agent or company before you make a final decision.
Consider the Age/Condition of Your Vehicle - physical damage coverages may not be cost efficient for older vehicles. If you do not have a loan on the vehicle, you may want to consider dropping these coverages.
Ask About Discounts - the type and amount of discounts offered vary by company.
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