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Understanding Required Auto Insurance in Chicago
When purchasing auto insurance in Chicago, you will need to consider several different types of auto insurance. First, you should know that the minimum required amount of auto insurance in Chicago is 20/40/10. This means that you must carry a minimum amount $20,000 liability insurance coverage, $40,000 minimum coverage for injuries in an accident and $10,000 for property damage that occurs from an accident. If you do not carry at least the minimum amount of auto insurance in Chicago then you could face serious legal repercussions.Liability auto insurance is required in most states and Illinois is no exception. In the event that you have an accident and you are at fault, the liability insurance on your vehicle will pay for any property damage and bodily injury expenses that arise from the accident as well as legal bills.
Collision and comprehension coverage will pay for the repair of your vehicle. Collision actually pays for damage that arises from an accident while comprehensive coverage will pay for damages to your vehicle that arise from something other than a vehicle accident, such as fire, theft, natural disasters, vandalism, etc. If your vehicle is financed, your finance company will typically require that you carry collision and comprehensive auto insurance coverage in order to protect their investment.
Uninsured motorist coverage can also be beneficial. This type of coverage will pay for injuries in the event that you are hit someone who does not have auto insurance in Chicago or elsewhere or you are a victim of a hit and run. Underinsured motorist coverage will pay in the event that you are hit by a driver who causes more damage than their liability coverage will cover.
When purchasing auto insurance in Chicago, it is important to keep in mind that there is a difference between actual cash value and replacement cost. Replacement cost refers to the amount of money that will be required to replace your entire vehicle or to repair the damages. Actual cash value refers to the value of your vehicle when it is destroyed or damaged. This may not be the same as replacement cost. In fact, in most cases, it is not the same. Be sure to ask about this when shopping around for auto insurance in Chicago so that you will not have any surprises if you should ever need to file a claim on your auto insurance.
