OAI: Ill. Auto Insurance Price Break Should Prompt Coverage Evaluation
December 14, 2011 (PRLEAP.COM) Business NewsThe news that State Farm could be giving some of its Illinois policyholders a break on their auto premiums should prompt customers who have scrimped on coverage in the past to consider using any savings to pay for additional coverage, according to Online Auto Insurance (OAI).
That's because, while everyone likes getting cheap insurance rates for their vehicles, having sufficient financial protection in the event of an accident is just as important.
State Farm recently announced it is cutting overall vehicle rates in the Prairie State by 2 percent overall in late December, a move that is estimated to save policyholders statewide nearly $34 million. The overall rate adjustment won't lower the cost of all coverage types, but it will reduce rates for liability coverage-which pays for damage caused by a policyholder-according to officials.
Illinois law requires that all motorists carry enough liability insurance coverage to pay for damages of up to $20,000 for bodily injury to one person, up to $40,000 total per accident and up to $15,000 in property damage.
But industry those liability policies will pay only for damage a policyholder causes to other motorists and their property. That may not provide enough financial protection in the event of a crash, and drivers with bills that exceed their policy limits could wind up having to pay out of pocket.
Consumers in Illinois and other states should look into other coverage types, such as collision and comprehensive, which will cost more than a bare-bones policy but will also provide greater peace of mind.
To learn more about this and other safety and car insurance issues, readers can go to http://www.onlineautoinsurance.com/cheap/ where they will find informative resource pages and a helpful rate-comparison generator.