It is important for consumers to understand the role of liability coverage when purchasing Auto Insurance in Mundelein, IL. In the state of Illinois, all motorists must maintain a minimum level of liability insurance or have the equivalent deposited at the Illinois DMV. Most people choose to purchase liability insurance. Many choose to buy much more liability coverage than the state minimum. It is important to understand how liability insurance works and why most consumers should get more than the minimum amount.
First of all, consumers need to understand that liability coverage is to pay for property damage and injuries caused by the insured motorist. For example, if another vehicle was damaged by the insured motorist, the insured motorist’s liability coverage will pay for the repairs. However, the liability coverage does not pay for the insured motorist’s own damage and injuries. If a consumer wants the Auto Insurance Mundelein, IL to cover his damaged vehicle, he needs to purchase collision and comprehensive coverage in addition to the required liability coverage.
It is advisable for most motorists to carry liability coverage far above the state minimum. Many cars are valued at more than $40,000. If the liability limit on auto insurance is lower, the insurer will pay the lower amount. Then the other driver’s insurance company will sue the responsible motorist for the unpaid amount. The same thing is true with respect to medical bills as a result of injuries sustained in the auto accident. A single day in the hospital can cost more than $20,000 depending on the procedures and tests ordered. A consumer with substantial such as real estate should seriously consider raising the liability limits to at least his total net worth. Furthermore, an insurer facing a claim of more than $100,000 will likely spend money on lawyers to defend the policyholder.
The only folks that should consider liability limits that match the state minimum are those that have zero or negative net worth. Everyone else should make sure that they have sufficient liability coverage to pay for the high cost of new vehicles and medical expenses in case of an accident.
