Re-Evaluating Your Auto Insurance: 5 Key Questions

You probably wouldn't dream of going without auto insurance in Chicago, Glendale, Evanston, Oak Park, or any other Illinois community. However, you must also ensure that you carry the kinds and levels of coverage that make most sense for your current situation, which might mean you need to re-evaluate your policy.



Changes in age, health, lifestyle, driving habits, and available income can all spur car owners to take a fresh look at their auto insurance to make any adjustments that might improve their coverage and reduce their expenses. If you haven't examined your coverage in a while, ask yourself the following five questions.

1. Do You Have Collision and Comprehensive Insurance?

You may already know that Illinois law requires motor vehicle operators to maintain minimum levels of insurance. At the very least, you must carry liability insurance that covers for you $25,000 in the event of an individual's injury or death, $50,000 for injury or death of more than one individual, and $20,000 in property damage.

While obviously important, liability insurance doesn't cover you against collision damage to your own vehicle or other catastrophes such as vandalism, theft, or natural disaster damage. These issues could force you to pay huge auto repair expenses — or even buy a new vehicle out of pocket — unless you also carry collision and comprehensive insurance.

Even with these benefits, comprehensive or collision insurance doesn't necessarily make sense for everyone. For example, if you total an old car worth less than the deductible on your policy, that coverage won't help you at all. In that kind of scenario, you'd do better to put that premium money toward extra liability coverage.

2. Do You Need to Adjust Your Limits?

Money-conscious car owners often feel the temptation to carry as little auto insurance as they can reasonably get away with. However, while $25,000 in individual liability or $20,000 in property liability might sound like solid coverage, the real expenses associated with a serious auto accident can run much higher.

Auto injuries and deaths often trigger lawsuits as the injured parties pursue compensation for stratospheric medical expenses and other losses. Ask yourself how much of a major lawsuit you could afford to pay above and beyond your insurance limits, then raise those limits to help cover the anticipated gap as best you can.

Umbrella insurance can prove even more valuable in cases like these. This form of insurance supplements your home and auto insurance if a legal judgment or other major expense exceeds those policies' limits. A typical umbrella insurance policy provides at least $1 million in supplemental coverage.

3. Have Your Needs or Challenges Changed?

A number of life transitions and lifestyle changes can affect how much auto insurance you need versus how much you currently have. Examples include getting married, adding or removing other drivers from your policy, buying a home, switching to a different vehicle, and developing an impairment that affects your driving skills.

Some of these changes can spike your premiums, while others may actually reduce them. If you experience any of these life transitions, ask your auto insurance agent to go over your policy with you and determine whether you qualify for a lower rate or how to compensate for a likely rate increase.

4. Can You Benefit From Bundling?

If you need to tighten your budget but don't want to sacrifice essential auto insurance coverage, look into the possibility of bundled policies. Many insurance providers offer discounted rates when their customers purchase multiple forms of coverage from them. A common example might involve a combination of home insurance and auto insurance.

You may also get a lower total insurance rate by bundling coverage for multiple vehicles in your household. Eligible policyholders usually include married couples, blood relatives, and individuals who jointly own the vehicles in question. 

5. How Else Can You Reduce Your Premiums?

Bundling offers just one of many possible ways you can reduce your auto insurance premiums. One of the simplest involves qualifying for a good-driver discount by taking a defensive driving course or by maintaining a clean driving record, thus reducing your perceived liability in the eyes of the insurance company.

You may dread the idea of adding a teen driver to your insurance policy since this change typically raises premiums. However, if your teen maintains good grades in school, you may manage to get a good student discount that helps to offset this increase.

Auto insurance companies take a vehicle's perceived safety into account when calculating premiums. Ask your insurance agent if you can get a discounted rate by equipping your vehicle with particular safety and security features such as anti-theft devices.

If all else fails, don't hesitate to shop around for a better rate from a different insurance company. Your insurance agent can re-shop your policy for you and recommend sensible alternatives.

Whether you feel the need to beef up your auto insurance coverage or you'd like to get the most auto insurance for your money, you should talk to the experts at Illinois Insurance Center. Our experienced team can make sure you have the right auto insurance for your vehicle, budget, and lifestyle. Contact us today.