subject: Different Car Insurance Options and why They are Important [print this page] Different Car Insurance Options and why They are Important
There are many different types of car insurance options available today. Some are mandatory, while others are optional. When deciding on what coverage is required and makes the most sense, it is important to understand the different coverage types available and how it will handle any potential insurance claims.
Understanding Medical Payments (Med Pay)
Medical Payments Coverage is required in states that do not have "No Fault" laws in place. Med Pay Coverage will pay for reasonable medical expenses due to bodily injury that is the result for an automobile accident. It will also cover funeral expenses that result from a car accident. This is optional coverage in Illinois and the coverage amount can vary from non to $5,000 with non-standard insurers and can be up to $25,000 with some preferred vehicle companies. The limit of liability for Med Pay Coverage is stated in a car insurance claims declaration page. The amount of Med Pay Coverage will vary from state to state. This is the limit per qualified injury party related to the accident.
Understanding Personal Injury Protection (PIP)
Unlike Med Pay Coverage, Personal Injury Protection (PIP) is required for states that do have "No Fault" laws in place. This type of insurance coverage is optional in Illinois, however, it is always worth considering and it is a good idea to discuss this type of coverage with an insurance company representative.
PIP insurance coverage includes all that Med Pay Coverage can provide for and more. For example, PIP can also cover bills associated with psychiatric assistance, physical or occupational therapy and any rehabilitation costs associated with car insurance claims related to a specific car accident. Additionally, PIP can cover lost wages and other work-related loss expenses.
Mandatory Car Insurance Coverage in Illinois
In Illinois, there are three main types of coverage that are mandatory; they include bodily injury liability, property damage coverage and uninsured motorist bodily injury. These are important if the need arises to file car insurance claims. Bodily injury liability has a minimum limit of $20,000 per person and $40,000 per accident. Property damage coverage has a minimum limit of $15,000 per car. Uninsured motorist bodily injury protects the insured individual if an accident occurs with an individual who is legally uninsured. The minimum coverage is $20,000 per person and $40,000 per accident.
Ultimately, it is important to understand all the different types of mandatory and optional insurance choices available. This will help if there is a need to file any car insurance claims related to an automobile accident.
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