How Much Car Insurance is Enough?

When you purchase an auto insurance plan in Chicago, what you are actually paying for are numerous policies that cover and protect you from various situations. The types of coverage include liability, bodily injury liability, property damage liability, personal injury protection, uninsured/underinsured motorist coverage, collision, and comprehensive insurance. Not every type is needed by every person, which is why we wanted to break down the options for you.

State Coverage

Almost every state makes it a requirement for drivers to purchase auto insurance and most have a minimum value that you have to reach. If you are pulled over by a police officer and they find that you have no insurance, they can choose to impound your vehicle. For those who live in Chicago, you are required to have a minimum insurance policy that covers $25,000/$50,000 in bodily injury liability, $20,000 in property damage liability, and $25,000/$50,000 in uninsured/underinsured motorist bodily injury.

Minimum Coverage

Minimum coverage is just that: the minimum. If you have insufficient insurance, you will be responsible for costs that excess your coverage limits. This is why insurance policies that cover more than the minimum are popular, especially for individuals who have assets that could be seized for medical care or repairs. It’s a good idea to have coverage up to the amount equal to the value of your assets.

Determining the Right Amount

You likely do not need to spend extra money on a personal injury protection policy, Most people are also covered in some ways by their disability insurance and health insurance through your employer. You can keep this as the required minimum.

One area where you may want additional coverage from your auto insurance plan in Chicago is in uninsured and underinsured coverage. This is often inexpensive and will cover your health costs if you are in an accident with a car operated by an uninsured drive.

Adding comprehensive and collision can also be an excellent idea if you would want to replace or repair your car following an accident. There is a deductible for these policies, which pay out based on the current value of your car, regardless of what you paid for it.

Choose a deductible that you can afford as this will lower the amount of your premium. Save this insurance for times when you are in a serious accident, not for small dings and scratches. Every time you submit a claim, it can increase the cost of your premiums.

For great insurance in Chicago, consider choosing Great Northern Insurance Agency, Inc. We offer a number of policies for auto insurance, as well as homeowner’s insurance, and more. You can learn more at www.GreatNorthernInsuranceAgency.com.

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