How Much Car Insurance Do I Need in Chicago?
Posted on May 15, 2023 by Active Insurance
When shopping for car insurance in Chicago, it’s important to know exactly how much coverage you need. Different states and even individual insurance companies have different requirements when purchasing car insurance, so understanding the specifics of your situation is essential.
In this article, we’ll cover all the factors you need to consider when figuring out how much car insurance you need in Chicago. We’ll also discuss the different types of coverage available and provide some tips to help you get the best rates on your car insurance.
Table of Contents
Types of Insurance Coverage Policies
Liability
Collision
Comprehensive Coverage
Uninsured Motorist Coverage
Medical Payments Coverage
Gap Insurance
Personal Injury Protection
How Much Coverage Do I Need?
What Is a Normal Auto Insurance Policy?
Get the Best Rates on Your Car Insurance
In Chicago and other states, car insurance is a legal requirement to drive. The minimum amount of coverage required depends on the state and can range from liability-only to comprehensive coverage.
Some of the common types of insurance are:
Liability
The most basic type of car insurance is called Liability Insurance. This covers medical expenses for any passengers or other drivers injured due to an accident caused by you, property damage incurred as a result of an accident caused by you, and any legal costs if you are sued.
Collision
Collision Insurance covers any physical damage to your car caused by an accident or other event that is not your fault. It also covers any damage sustained due to theft or vandalism.
Comprehensive Coverage
Comprehensive coverage goes beyond what Liability and Collision insurance cover, providing additional protection from unexpected events such as natural disasters, fire, collisions with animals, and more. It can also include roadside assistance and the cost of a rental car if your vehicle is damaged in an accident.
Uninsured Motorist Coverage
Uninsured Motorist coverage protects you from drivers who don’t have any insurance or don’t have enough insurance to cover the costs associated with an accident they caused. This coverage also provides medical payments for you and your passengers in the case of an accident.
Medical Payments Coverage
Medical Payments coverage pays for medical expenses if you are injured in an accident, regardless of who is at fault. This coverage also covers funeral costs if someone is killed in an accident you were responsible for.
Gap Insurance
Gap insurance helps cover the difference between what you owe on your car and the actual cash value of your vehicle if it’s totaled in an accident or stolen. It’s important to note that this coverage is typically only available for new cars, so you may need to purchase a separate policy for a used car.
Personal Injury Protection
Personal Injury Protection (PIP) is a type of no-fault insurance that covers medical expenses for you and your passengers, regardless of fault. It also covers lost wages due to an injury or illness caused by an accident.
How Much Coverage Do I Need?
To stay within the law, you must get at least state-mandated liability insurance when driving a vehicle. This type of coverage helps pay for any injuries and damages that are your fault in an accident. The most common legal limits of this kind of insurance are:
- $25,000 in bodily injury per person
- $50,000 in total bodily injury per accident
- $25,000 for property damage per accident
It’s important to note that these are just the minimum requirements, and you should consider purchasing more coverage if your car is worth a lot of money or if you have assets that could be at risk in the event of an accident. It’s always a good idea to carry more liability coverage than you’re legally required to so you’re not left to pay the difference.
What Is a Normal Auto Insurance Policy?
Accidents, theft, and other unexpected situations can happen at any time. That’s why car insurance is a necessary safeguard for your financial security and vehicle. Your car insurer will take care of the bill for repairs to your automobile or medical costs incurred in the event of an accident with another driver – keep in mind that regular maintenance and wear and tear won’t be covered by this type of policy!
You can buy many different types of car insurance policies. However, most basic car insurance includes liability protection. In fact, most states require a certain limit for these policies.
They may also want you to have uninsured/underinsured protection and comprehensive coverage. You’ll want to talk with your insurance provider to ensure you get full protection.
A normal auto insurance policy covers the following:
– Liability Protection
– Uninsured/Underinsured Motorist Coverage
– Comprehensive Coverage
– Collision Coverage
– Medical Payments Coverage
– Gap Insurance
– Personal Injury Protection.
In addition to the coverage above, you can purchase additional coverage types, such as rental car coverage or roadside assistance. Be sure to ask your insurance provider about what’s available and how it can help protect you.
Get the Best Rates on Your Car Insurance
Before purchasing an auto insurance policy, it’s important to understand what coverage options are available and how much coverage you need. Knowing this information can help you make an informed decision that best fits your needs and budget. Remember, the coverage recommended by your insurance provider may not be enough – it’s important to purchase more coverage if necessary.
That’s why it is always a good idea to talk to an insurance provider about your specific needs and get a free quote. At Pronto Insurance, we strive to provide top customer service, offering our best rate possible to continue to satisfy our customers for more years to come. Let us help you with your Auto Insurance, SR22 Insurance, Mechanical Breakdown Coverage, and more. The first step is to reach out and get a free quote!