When it comes to the topic of Chicago auto insurance, it’s safe to say that not all of us are experts. Especially if you are a first-time car owner or no longer on your parents’ insurance, you might be intimidated about the world of auto insurance and what it takes to get the best rates available on the market.
What makes auto insurance even more difficult to understand is the large amount of jargon that is casually tossed around, only for those not familiar with the industry to be left confused and feeling out of place. Thankfully, our team at Accurate Insurance is here to help you understand the ins and outs of auto insurance jargon so that you are up-to-speed when it comes to finding an affordable rate. The following terms are helpful in guiding you in the right direction for your policy purchase consideration. As always, feel free to reach out to us with all of your questions or concerns!
At-Fault Accident
Just as it sounds, an at-fault accident is an accident that you cause to happen. This can be either partially or completely your fault, but you will still be responsible for helping to pay for damage to other people’s property or for their injury bills; this is where you liability insurance comes into play.
Liability Insurance
This is an important facet of your Chicago auto insurance, as it is the portion of your auto insurance that covers injuries and damage that occur as a result of you causing a car crash. Liability insurance also covers any legal defense costs that you may encounter if you were to be sued.
Claim
When you file a claim, you are making a request to your insurance company in hopes that they will cover the costs incurred because of an accident. These costs include vehicle repairs, injury treatments, etc.
Collision Coverage
Collision coverage is designed to pay for any damages that your vehicle has after an accident either with another car or from a one-car accident. For example, if you crash into a pole or into a tree, this would be part of collision coverage.
Comprehensive Coverage
Comprehensive coverage helps pay for damage that occurred to your vehicle in accidents that were not your fault. Examples of this include collisions caused by animals, car theft, fire and falling objects hitting your car.
Deductible
A deductible is a predetermined amount of money that your insurer takes away (deducts) from your settlement for collision and comprehensive claims. You need to hit the deductible and then some in order to get help from the insurance company. For example, if your deductible is $1,000 and your total amount of repairs is $3,000, your insurance company will reimburse you $2,000.
Full-Coverage Car Insurance
Policies that include full-coverage auto insurance means that they include the liability insurance in addition to the physical damage coverages of both comprehensive and collision damages. However, this type of insurance is does not mean that you are covered regardless of all circumstances.
Personal Injury Protection
Unfortunately, some car accidents result in obtaining a personal injury. Personal injury protection (PIP) is a facet of Chicago auto insurance that helps pay for your injury treatment as well as the treatment of injuries for passengers in your vehicle, regardless of who is at fault for the accident. PIP protection may also cover some specific costs such as any needed physical therapy as well as a loss of income.
State-Required Minimum
As if auto insurance didn’t have enough moving parts already, every state has particular minimums that you have to meet in terms of coverage that you carry for your vehicle. However, keep in mind that these minimums are exactly that: a minimum, and they will not provide sufficient relief in the case of a serious accident.
Medical Payments Coverage (MedPay)
Medical payments coverage, also referred to as MedPay, is responsible for covering the treatment of injuries for both you and any passengers that you have in your car no matter who caused the accident.
Uninsured/Underinsured Motorist Coverage
In some scenarios, you may find yourself in a car accident with a driver who does not have the proper insurance. This is where your uninsured/underinsured coverage begins to work to help you pay for any injuries that you have in addition to helping you pay for damage to your car.
Don’t brush off the importance of Chicago auto insurance, as it could help you monumentally in the case of an accident. Not to mention the fact that a particular amount of coverage is needed in order to legally drive a vehicle! If you have questions about jargon related to auto insurance or if you’re hoping to find a competitive rate in your state, don’t hesitate to reach out to our team at Accurate Insurance today.
