Why You Should Audit Your Auto Insurance Policy in 2022

It’s a new year, and it’s also a great time to look at your car insurance policy. Why? Your auto insurance policy protects you and your family’s financial future in the event of a catastrophic car accident. Certain policies offer different protections.

3 Car Insurance Policies You Need to Review Today

In this article, we’ll discuss which three auto insurance policies you should consider adding (or increasing) to safeguard your family:

#1: Uninsured or Underinsured Motorist (UM/UIM) Coverage

Uninsured motorist (UM) coverage protects you when you are involved in a crash with an irresponsible driver who carries no liability insurance coverage. Usually, the amount of uninsured motorist coverage you carry is equal to the amount of bodily injury liability coverage that you have on your policy.

Similarly, underinsured motorist (UIM) coverage protects you when the bad driver has some insurance coverage, but it is nowhere near enough to cover the damages resulting from your injuries.

So, how much UM/UIM insurance coverage should you have? At Shannon Law Group, we recommend carrying a minimum of $500,000 in UM/UIM coverage. If you talk to your insurance provider, you may find that the difference in premium payments for higher coverage amounts only costs you an additional $10-20 each month.

The reality is that there are many people sharing the road with us that do not play by the rules of the road. By purchasing adequate uninsured and underinsured motorist coverage, you’re protecting you and your family from these drivers.

Learn more about the benefits of UM/UIM coverage in Illinois here. 

#2: Medical Payments (MedPay) Coverage

Medical payments coverage is part of an auto insurance policy, and it’s often not included on your auto insurance policy by default.

This coverage helps pay your or your passengers’ medical expenses after a car accident. MedPay coverage helps pay deductibles or any other medical expenses related to your treatment.

We recommend purchasing $15,000 in MedPay coverage to adequately cover any and all additional medical costs that your insurance doesn’t cover.

#3: Rental Coverage

Rental coverage helps pay for the cost of a rental vehicle while your car is being repaired after an accident. Depending on the damage, you could be without a vehicle for several weeks.

Having access to a rental vehicle in this scenario is a life saver. Rental coverage often costs less than $10/month to purchase through your auto insurer.

If you have any additional questions regarding your car insurance policy and coverages, contact your insurance provider for more information. You can also text attorney Joe Shannon at (312) 847-2428.