When someone finishes making all the car payments as scheduled, this person now owns the vehicle outright. At this point, the owner is still required by law to carry liability automotive Insurance in Chicago but can drop collision and comprehensive coverage that was required by the bank or other financing company. Many drivers continue to keep at least one of those types of coverage for their own financial protection.
There are common misconceptions about what this insurance pays for, so it’s smart to get educated about the coverage. Even with both types of coverage, not every single type of damage will be paid for.
Deciding on the Deductible
When someone has been carrying automotive Insurance in Chicago for a number of years, the concept of the deductible should be understood. However, that’s not always the case if this person has never needed to make a claim. When damage does occur, it can be troubling to discover that the high deductible that kept premiums low all these years now means the insurance won’t pay for the repairs.
Vehicle owners must carefully consider how much they can afford to pay out of pocket when deciding on a deductible amount that they are responsible for paying before insurance kicks in. A $500 deductible keeps premiums low but can be a significant bite in the budget if auto body repairs become necessary.
No Coverage for Valuables in the Car
People often think that comprehensive insurance covers valuable belongings that were in the car that was broken during a collision or belongings that were stolen during a break-in. That’s not the case. Also, comprehensive coverage typically doesn’t cover damage to a rental car the policyholder might need. That’s why rental companies require another type of insurance from the customer.
Not all insurance companies include towing coverage with comprehensive or collision coverage, but some do. Some automotive insurers offer a more complete optional roadside assistance package so their customers can avoid towing. This might cover changing a flat tire, gas delivery, and battery charging. Representatives from an independent agency such as Great Northern Insurance Agency can provide more details on all of these aspects.