Vehicle Insurance Chapter 33 7/18/2019

Why is vehicle insurance so important? What happens if you are in an accident and you do not have insurance? 7/18/2019

Seven Types of Protection Bodily insurance liability Property damage liability Collision Medical payments Comprehensive motorist protection Uninsured motorist protection Miscellaneous coverage 7/18/2019

Liability Insurance Most basic type of coverage Bodily Injury Liability Covers injuries to someone else Required in the state of Illinois Property Damage Liability Covers damage to another person’s vehicle or other property, such as telephone poles or street signs 7/18/2019

The policy states the amount of protection in thousands of dollars Example: 100/300/50 Means $100,000 for injuries to one person, $300,000 for all claims in one accident, and $50,000 for property damage. 7/18/2019

Collision Insurance Covers damages to your own vehicle. The maximum amount covered is based on the actual cash value of your vehicle. The insurance company will not pay more than the vehicle is worth. 7/18/2019

Medical Payments Coverage Also called personal injury protection It covers injuries to you and anyone else in your car. It pays for the medical bills. 7/18/2019

Comprehensive Coverage Covers damage to your vehicle caused by things other than a car accident. Losses from falling objects, theft, flood damage, vandalism, and other causes. You are covered if someone smashes your window and steals your car stereo. 7/18/2019

Miscellaneous Coverage Cost of a rental car Towing Cover someone else who might use your car 7/18/2019

Illinois’ Mandatory Insurance Law - Handout - Complying with the Law You are in compliance with the mandatory insurance law if you have vehicle liability insurance in the following minimum amounts: $20,000 - injury or death of one person in an accident $40,000 - injury or death of more than one person in an accident $15,000 - damage to property of another person 7/18/2019

You must always carry your insurance card in your vehicle and show it upon request by any law enforcement officer. Your insurance company will send you an insurance card, usually when your insurance policy is issued or renewed. Your signature on the Vehicle Renewal Registration Application affirms that your vehicle will be properly insured throughout the registration period. 7/18/2019

Enforcement Enforcement of the mandatory insurance law is accomplished through a random questionnaire sampling process and the issuance of traffic tickets. If the computer randomly selects your vehicle, you will receive a questionnaire asking for the name of your insurance company and policy number. Your answers will be verified with the company you name. If you do not have insurance or fail to return the questionnaire with the requested information, your license plates will be suspended. 7/18/2019

If you are stopped for a traffic violation or involved in an accident, a law enforcement officer may issue a traffic citation if you are unable to provide evidence of insurance. If convicted, your license plates will be suspended and you will face the following fines: minimum $500 fine for driving uninsured minimum $1,000 fine for driving a vehicle while the license plates are suspended for a previous insurance violation 7/18/2019

Cost of Insurance Insurance premiums Deductible What you pay for the insurance Covers the policyholder for a limited period of time, usually for a month, six months, or a year. Deductible An amount in damages a policyholder must pay before the insurance company pays anything. 7/18/2019

Factors Affecting the Costs of Insurance Type of vehicle Where you live How old you are Driving record Higher deductible 7/18/2019