Apart from Virginia and New Hampshire, every state requires vehicle owners to have some form of car insurance (or at least to prove financial responsibility). According to Illinois’s DMV website, all drivers in the state are required to have liability insurance that covers:
$25,000 for bodily injury per person
$50,000 total for bodily injury per accident
$20,000 for property damage
Despite the regularity of car insurance, these policies can be complex and difficult to understand. This is where we come in! Below, PLR answers some frequently asked questions about car insurance!
What is auto insurance?
Auto insurance is a contract between you and your insurance company that transfers risk from you to them. As long as you’re paying the premium every month, when collisions happen, your insurance company will be the one paying the majority of the costs (depending on your type of insurance!).
What is comprehensive auto insurance?
Comprehensive auto insurance helps cover damage in incidences other than a collision. This could include things like graffiti, the weather, or animal damage. While comprehensive auto insurance covers all parts of the car, it can be especially useful when your windshield is damaged by the weather or pieces of gravel.
Does my auto insurance cover rental cars?
According to U.S News and World Report, generally, yes, a driver’s primary insurance does extend to their rental car. That means that, if you have liability insurance up to a certain amount, you are probably covered for that amount when driving a rental as well. However, we encourage you to examine your policy for specifics. If you need help, that’s what the staff at PLR is for!
How much is auto insurance?
This depends not only on the type of insurance that you have but also on a variety of other factors, including the type of car you drive, where you live, and your credit score. For tips on lowering your car insurance premium, see our blog post on the topic here.
While we’ve attempted to answer some common questions about auto insurance, in reality, we’ve barely scratched the surface. If you have questions about your auto insurance, we encourage to contact us. In addition, if you need auto insurance and would like a quote, simply fill out this form, and one of our passionate and reliable agents will get in touch.
Car insurance is complex. At PLR, we make it simple.