Illinois Vehicle Insurance: Do I Need Collision Coverage?
February 3rd, 2021
When you start your Illinois vehicle insurance policy you need to make sure that you are getting all of the coverage you need to protect yourself and your assets. It is not always easy to predict the future, in fact it never is, but you can take the proper precautions to ensure that you will not have any issues with your coverage. Consider the following information about collision coverage and determine if you need to carry it on your vehicle in your situation.
First, let’s be clear that there is no law requiring you to carry collision coverage like there is for liability coverage. Your right to protect your own vehicle is your right and if you choose not to that is your right as well, but you may not have a choice based on your bank. If you are financing your vehicle it may be a condition of the loan that you have your vehicle carry the proper amounts of collision coverage, they may even require a certain deductible.
The reason that a bank would require you to carry collision coverage is because it will protect their investment in the vehicle they purchased for you. Yes, you would pay the deductible if it were damaged, but this way they can guarantee it will be repaired or if it is totaled that you will get a settlement. The bank wants to protect their investment in you and your vehicle, that is the only reason they would require collision coverage.
In the cases that they require a certain deductible it is because they want to put the odds in their favor that you will pay and have your vehicle repaired. If your deductible is $1,500 it may be hard for you to pay that to have your vehicle repaired, but if it is $500 (what most banks require) you would be more likely to be able to pay and have your vehicle covered.
If you are not at fault for the damage to your vehicle, meaning someone else caused the auto accident that you were involved in, then you may not have to pay at all. File a claim under that person’s insurance and their liability coverage should have to pay to have your vehicle repaired or replaced. Carrying collision coverage is a very good idea in any situation, but you have to make sure the deductible is an amount that you could pay at once if you had to.