What Does Car Insurance Cover in Chicago?

What Does Car Insurance Cover in Chicago?

May 13

All states (except for New Hampshire) require drivers to have the minimum car insurance coverage as established by state law. This will vary, but in Illinois you need liability coverage ($20,000 for injury or death of one person; $40,000 for injury or death of two or more persons in an accident), and property damage ($15,000). The minimum required is not usually enough. Higher coverage is always recommended as these amounts will not be enough anything other than minor injuries and property damage.

Habush Habush & Rottier S.C.® stresses the importance of understanding that liability coverage is only for personal injury. It does not cover property damage. In addition, personal car insurance for liability coverage follows the insured under limited circumstances. There is no standard for this. For example, if you have liability insurance and you are driving your own car, then you will be covered. However, if you are not driving your own car and you get into an accident, your claim may be denied as excluded from coverage. Be sure to understand the terms and conditions set down in your policy.

On the other hand, collision and comprehensive insurance “follows” the car. This type of car insurance covers damage and theft of the insured vehicle even if during the relevant instance the driver was not the registered owner of the vehicle. However, some policies may still have stipulations about the persons authorized to operate the vehicle. In most cases, family members are automatically authorized. The insurer will rarely cover claims in which the driver was operating the vehicle without the permission of the registered owner.

Car insurance can be complicated. It is important to take the time to ask your insurance agent to clarify what is and what is not covered under your policy. It can save you a lot of money and stress in the long run.