Gaps in auto coverage

Auto coverage is pretty much standardized from Company to Company. However, you must make sure that your policy does not leave you hanging in the event of certain losses. The following issues should be addressed in order to adequately protect yourself and your family.

Adequate Liability limits	The minimum limit in Illinois is $20,000.00 per person and $40,000.00 per occurrence. However, the typical limits carried are $100,000.00 per personal and $300,000.00 per occurrence. If you carry lower limits and are involved in a serious accident, your personal assets could be at risk. The greater wealth you have the higher your limits should be including a personal umbrella policy. AN UMBRELLA LIABILITY POLICY IS RECOMMENDED.
Adequate uninsured and underinsured motorists limits.	This coverage protects YOU. The limits for both coverages should be no lower than the bodily injury liability limit. Also, most umbrella policies do not provide coverage over and above the uninsured and underinsured motorists protection. Hahn Agency has two insurance companies who include this coverage on their Umbrella policies.
Comprehensive and Collision coverage on older vehicles in excellent condition.	Comprehensive and Collision coverage is paid upon an Actual Cash Value basis. This means that the insurance company will pay you what your car is worth, on average, in the marketplace,. If your vehicle is in excellent shape the actual cash value will most likely be a lot lower than the value of your particular vehicle. In order to avoid this "gap" in coverage you should obtain an appraisal on your car and insure it on a "stated amount" basis.
Adequate coverage for customized vehicles or conversion vans.	If you have a vehicle that has been customized outside of the manufacturer's factory, you must take care to add the additional cost for the customization to the total insured value for the vehicle. This is of particular concern for aftermarket convertibles or conversion vans. You must add a separate, additional limit for these customization costs.
Have your home and auto coverage with one insurance company.	This "Bulletproofs" the coverage in the event a claim occurs in the "gray" area between auto and personal liability.
Do not have more than one insurance company providing coverage for your primary personal automobiles.	All auto policies provide liability protection for you when you drive other vehicles. If you have two primary personal auto policies, the insurance companies may fight over how will be the respondent on one of these "hired or non-owned auto" claims.

This is a quick overview of some coverage "gaps" that can occur in personal auto policies. Request a quote for a comprehensive review and competitive quotation of YOUR personal auto coverage.

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