 |
AUTO INSURANCE FACTS
for
TEENAGE DRIVERS |
| January 1998 |
Congratulations! By now, you have already earned your white slip or blue slip and are counting the days until you finally receive your official drivers license. In preparation, you are being flooded with all kinds of important information that you're expected to remember while you're actually learning to drive.
But before you take the wheel on your first solo cruise, there is one more thing you should know about -- insurance.
Look this information over before you start driving and then discuss the information with your parents or guardian and an insurance agent.
The Illinois Department of Insurance wishes you safe and happy driving!
Frequently Asked Questions (FAQ)
Insurance Terms You Should Know
What You Should Do If You Have An Accident
Emergency Information Worksheet
Frequently Asked Questions (FAQ)
Q; I just got my drivers license and I have a car. Can I drive?
A; Not until you have insurance. That's the law in Illinois. If you get caught driving without insurance, you face a fine and suspension of your license plates. Before you drive anyone's car, ask to see their insurance identification card. Even if you don't own the vehicle, you can be penalized for driving it without insurance.
Q; How can I get insurance?
A; The easiest, and probably the cheapest, way is for your parents to include you on their insurance. If you drive the family car, they can add your name to their policy. If you have your own car, they can add your vehicle to their insurance and possibly qualify for a multi-car discount.
In either case, your parents' rates will be higher than they are now, so it's wise to discuss the options and costs with your insurance agent.
Q; My parents don't want me added to their policy. How do I buy my own insurance?
A; You can insure your car under your own name on a separate policy. But shop around first. Some companies will give you a break if you take driver training and some will lower the premium if you maintain a B average.
Q; Will the kind of car I own make any difference on the insurance costs?
A; It sure will. If you have a sports car or a high performance car you may have a hard time finding insurance at standard rates. And if your car is a "street machine" or is "soaped-up," there's an even greater chance that you'll pay a lot more for your insurance.
Q; What kind of insurance do I have to buy?
A; Illinois law requires you to buy minimum liability coverage of $20,000 per person, $40,000 per occurrence and $15,000 for property damage. These limits are very low. If you can afford to pay more for insurance, you should check into higher liability limits of at least 100/300/50.
Q; Do I need comprehensive and collision coverage on my car?
A; That depends on the age and value of your car. If you have a newer car, you will probably want to insure it against damage. But if the car is older, the premiums for comprehensive and collision coverage may cost more than the car is worth. Generally, you can expect to double your insurance premium if you add these coverage's to your policy.
However, if you have borrowed money to buy your car, the bank will probably require you to have these additional coverage's.
Q; How do I get an insurance card?
A; After you pay for your policy, you'll get an insurance card from either the agent or the company. Carry this card in your car at all times because you'll have to show proof of insurance if you're stopped by the police. Your insurance application and/or paid receipt from the agent will serve as proof until you receive the card.
Q; What happens to my insurance if I have an accident or I get a ticket?
A; That depends on the severity of the accident or ticket. Your insurance premium could go up if you have an accident, especially if it's your fault. If you have more than one at-fault accident in less than three years or if you are convicted for a serious offense such as a D.U.I. (driving under the influence of alcohol or drugs) or reckless driving, the insurance company could terminate your insurance.
If you are insured under your parents' policy, your driving record can also affect their insurance.
Q; What if the insurance company cancels my insurance or won't insure me at all?
A; Apply with other insurance companies. The guidelines for accepting drivers varies. If you still can't get liability insurance coverage, ask about the Illinois Automobile Insurance Plan. This organization insures high-risk drivers, but the rates will be substantially higher.
Insurance Terms You Should Know
Illinois Automobile Insurance Plan (Assigned Risk): A state supervised plan for people who can't obtain insurance in the regular insurance market. The cost is substantially higher.
Bodily Injury Liability: Insurance that pays for another person's bodily injury or death in an automobile accident that you caused.
Property Damage Liability: Insurance that pays for damage you cause to someone else's property in an automobile accident.
Medical Payments: Insurance that pays the medical and funeral expenses for you or any passengers riding in your car at the time of an accident. Medical payments will provide coverage whether the accident was caused by you or someone else.
Collision: Insurance that pays for damages to your own car if it is involved in a collision, regardless of who is at fault. Collision coverage may carry a deductible -- a stated amount that you must first pay out of your own pocket.
Comprehensive: Insurance that pays for non-collision losses to your car such as fire, theft, flood, hail, vandalism, glass breakage and falling objects. Comprehensive coverage may also carry a deductible.
(Note: if your car hits an animal, some insurance companies will treat it as a collision claim, while others will treat it as a comprehensive claim.)
Uninsured Motorist Bodily Injury: Insurance that pays for bodily injury to you and your passengers if your car is struck by an uninsured driver. This coverage does not pay for damages to your car. However, if you don't buy comprehensive or collision insurance, you can instead purchase uninsured motorist property damage coverage to protect your car.
Uninsured Motorist Property Damage Insurance (UMPD): Covers damage to your vehicle caused by an identified, at-fault, uninsured driver. This option is only offered if you choose not to purchase collision coverage.
- Get medical help for anyone who may be injured.
- Call the Police. Do not leave the scene before the police arrive. If you are in an unsafe area, you may relocate to the nearest police station or public place and then call the police.
- Get names, addresses, telephone numbers and license plate numbers of anyone involved in the accident and the same information of any witnesses.
- Call your parents or guardian and tell them what has happened and where you are located.
- Notify your insurance agent or insurance company as soon as practical.
Keep the following information in a safe place in your vehicle for ready reference in the event of an emergency:
Insurance Company: _______________________________________
________________________________________________________
Policy #: _________________________________________________
Agent's Name: ___________________________________________
Agent's Phone #: __________________________________________
Police Dept. Phone #: ______________________________________
Towing Company: _________________________________________
Towing Co. Phone #: _______________________________________
If you're in an accident with another driver, don't forget to ask:
Driver's Name: ___________________________________________
Driver's Address: _________________________________________
________________________________________________________
Driver's Phone #: _________________________________________
Driver's Insurance: _______________________________________
________________________________________________________
Witness's Name: __________________________________________
Witness's Address: ________________________________________
________________________________________________________
Witness's Phone #: ________________________________________