The state of Illinois requires all drivers to carry minimum insurance on their vehicles. Many times, drivers don’t understand what their policies cover. Car insurance terms used by Chicago agents can seem too technical. Just reading the policy declaration page may not be enough to help you understand your coverage. Here are some of the most commonly used car insurance terms in Chicago policies and their definitions.
- Policy Limits. This is a predetermined maximum amount the insurer will pay for particular types of damage or injuries under the terms of their policy. If the actual damages exceed the limit stated on the policy, the at-fault driver may be liable.
- Liability. The state of Illinois requires certain liability insurance. This will cover property damage and injuries the policyholder causes to others in an accident. This may include covering damages or injuries caused by someone else who uses your vehicle with your permission.
- Uninsured & Underinsured Motorist Bodily Injury (UM & UIM). This is one of the confusing car insurance terms in Chicago policies. This type of coverage is beneficial if you or your passengers are injured in an accident caused by another driver who doesn’t have enough insurance, has no insurance or leaves the scene of the accident and can’t be found.
After reviewing these car insurance terms for Chicago, if you need help understanding your policy or have more questions, visit the Great Northern Insurance Agency website to speak with a knowledgeable agent.