Question: I have an older car whose current market value is very low – do I really need to purchase car insurance?
Answer: Most states such as Illinois have insurance laws that require drivers to have at least some auto liability insurance. These laws were enacted to ensure that victims of car accidents receive compensation when their losses are caused by the actions of a negligent individual.
Often the cost of repairing the damages to an older car is greater than its value. In these cases, your insurer will usually just "total" the car and give you a check for the car’s market value less than the deductible. Many people with older cars decide not to purchase any physical damage coverage.
Question: What is the difference between collision physical damage coverage and comprehensive physical damage coverage?
Answer: Collision is defined as losses you incur when your car collides into another car or object. For example, if you hit a car in a parking lot, the damages to your car will be paid under your collision coverage.
Other than Collision (sometimes referred as Comprehensive) provides coverage for mostly other direct physical damage losses you could incur, including theft and vandalism. For example, damage to your car from a hailstorm or a tree falling on it will be covered under your comprehensive coverage.
Question: What factors can affect the cost of my car insurance in Illinois?
Answer: A number of factors can affect the cost of your car insurance in Illinois - some of which you can control and some that are beyond your control.
The type of car you drive, the purpose the car serves and your driving record can impact rates. Where the car is garaged can all affect how much your car insurance will cost you. Rates in Mount Prospect will be different then Des Plaines or Arlington Heights.
Even your marital status can affect your cost of insurance. Statistics show that married couples tend to have fewer and less costly accidents than those who are single.
Held Insurance Agency serving the Mount Prospect area and all of Illinois. Contact us to learn more at 847-264-4644.