When it comes to knowledge about car insurance, you may think you know the basics, but do you know enough? A 2017 survey of 1,165 auto insurance consumers by insurance search engine The Zebra revealed that 99 percent failed to identify 10 basic insurance coverage types and terms.
Though the survey only reflects a small fraction of the entire driving population, it’s still concerning to know how misinformed vehicle owners are. Worse, some of what they do know about auto insurance are based on myths and hearsay.
Here, we’ll give you examples of common car insurance myths and the truth behind them.
Fact: We’re not sure where this myth came from, but it’s surprising how many people believe this. In one survey by the online insurance comparison site insuranceQuotes.com, 44 percent believe red cars have more expensive insurance coverage.
The truth is, many factors affect the cost of your car insurance. These factors include:
Other factors such as the cost of repairing your vehicle and how popular your car is with thieves may also affect your insurance rate. What’s not a factor is the specific color of your car.
Fact: You know your credit score is important when you’re obtaining new credit, but some don’t think the same when it comes to getting car insurance. The truth is in most states, car insurance companies view your credit scores to predict the odds that you’ll file a claim.
If you have a good credit history, you have a better chance of getting an insurance policy for the right price. However, people with bad credit scores or those called high-risk drivers may pay a higher premium to insure their vehicles.
Fact: Some people think that just because they’re not driving when their car is involved in a collision, they’re not in charge of the insurance.
In most states, insurance follows the car, not the driver. This means that regardless of who’s driving your vehicle at the event of a collision or any other accident, it’s your car insurance company that will cover the cost of damages.
Fact: Some drivers hesitate to file a claim with their insurance company when they get into an accident because they fear that their rates will automatically rise. The catch in this is that when you get involved in an accident with another driver, they may file for damage or injury claims. If they do, your insurance company will still know about the accident.
Additionally, your car insurance rates will increase only if you’re the at-fault driver, you live in a no-fault state, or the insurance company deems you more likely to get into another accident.
While some of these myths have convincing origins or reasons behind them, they’re still not entirely true and believing so could keep you from making the most out of your auto insurance policy.
Whether you need an auto, SR-22, or motorcycle insurance in Chicago, let Oxford Auto Insurance protect your car for you. With different payment plans and multiple companies, we provide some of the most comprehensive and low-cost insurance packages in the state of Illinois.
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Illinois plans to automate verification of auto insurance within the year to make sure that every vehicle on the road is covered, but the state has yet to have a database required for electronic verification.
The state will begin collecting funds to design and create the database from a council of insurance companies created to reduce vehicle theft and insurance fraud.
Henry Haupt, the spokesperson for the Illinois Secretary of State’s office, said in a public statement that 75 cents will be taken from the council every year to fund the creation of the electronic database. Once the database is created, automated verifications for car insurance will take place at random at least twice a year.
The new law will eventually discontinue and nullify physical insurance cards, as your proof of insurance will be simply your license plate.
To implement the new law, the Illinois Secretary of State will be working closely with every insurance company in the state. The new law will require all insurance companies to provide a list of all their covered drivers, along with other relevant insurance information, to the Secretary of State. All this information will be compiled into the electronic database that keeps track of all the drivers covered with insurance and the amount of coverage each driver has.
The new law goes in line with the same goal of the recent price hikes of car insurances in Illinois: to reduce car collisions.
Versus all other US states, annual car insurance costs in Illinois are greatly influenced by your history of driving violations. For example, a DUI violation will raise your average insurance rate by 126 percent. In other US states, the average increase will only be 72 percent.
As a driver, it is your legal responsibility to have at least basic liability insurance when driving on public roads. According to the Department of Treasury, vehicle owners must have insurance limits of at least $25,000 BI (bodily injury) per person, $50,000 per occurrence, and $20,000 in property damage coverage.
The first and second time you get caught driving without insurance, you will receive a fine between $500 and $1,000. Your succeeding offense can result in the suspension of your driver’s license. If you cause a serious accident while uninsured, you can end up in jail for up to one year.
To help you find the most competitive car insurance rates, Oxford Auto Insurance is here to help. As one of the leading auto insurance agencies in Harvey, Illinois, we always strive to give you flexible payment plans and multiple options – and we do not just stop there. You can also come to us to look for competitive rates for insurance renewals.
For over 65 years, we have been serving Chicago residents with everything they need to know about auto insurance, SR-22 insurance, and motorcycle insurance. We are proud to be a member of the Trusted Choice Insurance Network and the Independent Insurance Agents of Illinois.
For more information, get in touch with us today.
The mandatory auto insurance law of Illinois requires drivers to carry minimum insurance coverage in case they cause a traffic accident on public roads and highways. However, when shopping for auto insurance deals in Cicero, drivers should consider more than the bare minimum they need to fulfill. Carrying enough insurance protects drivers from shelling out their own money for potentially high costs they may incur in vehicle accidents.
The laws of Illinois require vehicle owners to carry liability insurance and uninsured motorist coverage for their registered vehicles. Drivers must always have their car insurance card with them when they are on the road. The minimum coverage includes:
The minimum liability insurance covers medical expenses, property damage, and other incurred costs from people injured or property damaged. Banks and money lenders may require drivers to carry extra auto insurance coverage such as collision, comprehensive, medical, and property damage insurance before they can receive auto loans.
Illinois’ authorities monitor drivers’ car insurance statuses through random verification questionnaires and traffic stop inspections. Drivers must respond to questionnaires with their insurance carrier and policy number, which authorities will use to verify their existing insurance. Traffic enforcers also have the right to ask for proof of insurance randomly during traffic stops.
Drivers found without a minimum insurance policy may face fines ranging from $500 to $1000. Repeated offenses may result in license plate suspension.
Illinois follows a “fault” system to determine who is financially responsible for the injuries, vehicle damage, and other losses caused by a car accident. In case the costs incurred go beyond the coverage limit, the driver has to shell out his/her own money and pay for the excess.
The Illinois Department of Transportation and the National Safety Council published the 2016 Illinois Crash Facts and Statistics in 2018 and found that the total estimated cost of vehicle crashes in the state was $7.7 billion. Broken down into the various vehicle incidents in 2016:
Given these statistics and the legal minimum coverage, basic insurance may not be enough to protect the driver from accident costs. Drivers might not be able to pay for the cost beyond their coverage, and a severe accident might bring them and their household to bankruptcy.
Apart from the costs they have to pay the injured parties, drivers also need to pay for their injuries and properties. Basic liability insurance does not cover the driver’s injuries or property damage. Drivers are unprotected in case the injured party sues for personal injury.
When shopping for auto insurance, drivers in Illinois should look at their options as more than just a legal requirement. They should also look at it as a way to protect themselves and their families from going into debt should they ever cause an accident. Thus, they should find the best policy they can afford that gives them the most financial protection.
Comprehensive auto insurance is affordable with Oxford Auto Insurance. Our teams compare policies of up to 15 providers to give you the best options for your insurance needs. With monthly payments as low as $23, you can have increased liability limits and maximum protection from expensive road accidents.
Call Oxford Auto Insurance at 312-260-9000 today for a free quotation.
While shopping for a car insurance policy, you might have heard of comprehensive coverage. Some car owners think that obtaining this type of insurance means they won’t have to pay a penny out of pocket when an accident happens. But this kind of misinformation could lead to frustration when you get into an accident and expect your comprehensive insurance policy to cover the damages.
Contrary to its name, comprehensive car insurance doesn’t cover everything. It pays for specific non-collision issues, including theft, floods, fire, animal crashes, weather disturbances, and more.
Obtaining comprehensive auto insurance in Aurora is the best way you can plan for the unexpected and protect the value of your vehicle after an accident happens. Learn more about how the policy works below.
Comprehensive car insurance provides coverage for things that damage to your car — beyond your control. These include:
Since comprehensive insurance doesn’t cover collisions with other vehicles, it won’t cover you if you get into a, for example, fender bender. For better protection against unforeseen events, insurers recommend getting collision and comprehensive coverage to include both losses.
On a similar vein, the insurance policy does not include medical or legal expenses related to a collision or other events involving your car. This extends to you and your passengers, as well as the driver and passengers of the other vehicle involved in the incident.
Comprehensive coverage is not part of the state minimum requirement for car insurance. In cases where you have a lease or loan on your vehicle, however, your lender may require you to purchase full insurance coverage for your car, requiring you to take out a comprehensive coverage.
When your car is new and still has value, it makes sense to buy broad insurance coverage for enhanced vehicle protection. But since comprehensive coverage covers different risks, it can also benefit those who own older cars, too. After all, the cost of damage can affect your finances, regardless of whether your vehicle is new or old.
Comprehensive insurance is a smart move for most drivers. Ultimately, obtaining the policy depends on the state of your car and your ability to pay off accidental damage.
Oxford Auto Insurance ensures that you stay financially protected even when you’re on the road.
Contact us today for help in finding an insurance policy that fits your needs.
Specific car insurance companies appeal to different types of drivers. Some companies specialize in servicing families while others cater to drivers with less-than-perfect driving records. You can save hundreds of dollars or get additional benefits if you choose to buy insurance from a company that is a good fit for your needs.
As such, comparing car insurance companies in Aurora is just as vital as comparing insurance quotes. Here are a few ways you can effectively shop for the right insurance company:
One way to know if an insurance company matches your requirements is to research its consumer track record. Read reviews online to see what the consumers say about its insurance policies and services.
If you’re comparing two or more companies, check their complaint records on the website of the National Association of Insurance Commissioner (NAIC) or your state’s insurance department. You can quickly remove companies with the highest number of complaints from your list. You don’t want to work with an insurance company that doesn’t provide excellent customer service.
Many car owners commit the mistake of comparing different coverages from two insurance companies. What you should do, instead, is to establish your desired coverage limits before shopping for insurance. And make sure you use those same limits to request a quote from every company you check out. This way, you get to see which company offers the better deal.
Before you begin comparing insurance quotes, make sure you inquire about potential car insurance discounts. Perhaps, you can bundle your home and auto insurance from one company. Or, ask if the company provides low down payment or low monthly rate options. Checking possible savings is a great way to trim down your choices.
Just a quick reminder, though: make sure to use the same desired coverage limits when comparing insurance discounts. This way, you get a clearer view of the possible savings offered by each company and see which discounts are more worthwhile for you.
Many insurance companies offer optional coverage such as tow truck insurance, which you may need for sudden car breakdowns. So, if one provider offers add-ons that you want at the same price or close to the price of another company’s insurance without the extras, it may be worth choosing the company that offers optional coverage.
Having a less-than-perfect credit score or driving record doesn’t mean you don’t have a chance to get a good auto insurance deal. Make sure to work with a company that understands your specific situation and helps you get great, affordable coverage despite that.
Comparing auto insurance companies is easy, once you know what to look for. So, make sure to follow the tips above to make your shopping more efficient and to find the provider that best suits your needs.
If you want further assistance in your search for the auto insurance that’s right for you, we’re here to help. Talk to us today.