Auto Collision Comprehensive Insurance Comp/Collision Illinois Single-Interest Policy Car Insurance

Comprehensive: covers the tangible aspects of your car in the event of damage or loss that results from anything other than a collision. For instance: fire, theft, vandalism, even damage from animals. The policy will pay for repairs less the amount you’ve chosen for your deductible.

Collision: It’s pretty self-explanatory. Collision covers damage that occurs through an accident.

How much coverage you need may vary. Do you own your car? The law won’t require you to protect your car. If it’s an old car and you don’t care to have bumps and scratches repaired, you may not want to carry Comprehensive and Collision coverage. However, if you have a loan on your car, the lender is most likely going to require that you do. And you must carry liability insurance as a matter of law.

So let’s look again at Comprehensive and Collision. The lender will require it if you owe money on the car. If you decide not to carry this coverage, they may repo the vehicle or they could buy coverage for you. Does this sound like a good, time saving option? Consider this:

• They are interested in protecting THEIR INTEREST, not yours. This is called a “Single interest policy”
• They can’t insure for more than their interest. So if your car is worth $20k and you owe the lender $10k, they are only going to insure it for $10k. If you get in an accident and the vehicle is totaled, you will not be covered for the full value of the car. This single interest policy only covers the balance of the loan and is paid directly to your lender.
• Their coverage will generally cost more (sometimes twice as much) for half the coverage.
• There is no liability coverage offered in a Single Interest Policy….and liability is what the law requires you carry.

The only way to protect your equity interests is to get your own policy.

Are your premiums too high? Have your Independent Insurance Agent shop around for you. Choosing higher deductibles will lower the costs.  It’s becoming more and more the norm to carry a deductible of $1000 rather than $100 to keep premiums lower. Remember, it’s better to have a high deductible than no coverage at all.

Having the right agent is having the power to get the best deal and the best customized coverage for your needs. Illinois Insurance Center is one of the Midwest's fastest growing and most progressive insurance agencies. We are a full service agency, representing many different carriers, providing all lines of insurance for your personal and business needs. Speaking to our professionals can help you customize the best option for you. Contact us for a no-obligation quote, and enjoy our professional services.