With tough economic times all around, Allstate Insurance Company announced that many consumers are reducing the amount of automobile liability insurance coverage they are obtaining. Of course, with many consumers reducing the amount of coverage they buy, one also suspects that many are simply doing without, even in the face of Illinois’ mandatory automobile insurance law.
There are a couple of take-aways from this news story for consumers who are still able to buy the kind of coverage that truly protects them in the event of an accident. First, they should obtain as much medical payments coverage as possible. This is a no-fault coverage which covers your medical expenses, up to your policy limit. With rising health care costs and the prospect of more drivers on the road with no insurance or inadequate insurance, the only one who can help assure the payment of your medical expenses is you, and this coverage will help with that. Second, you should obtain as much uninsured and underinsured coverage as your carrier will sell you. Uninsured and underinsured coverage applies when you or a member of your household are involved in an accident with a driver who has no insurance or inadequate insurance. It applies even when you are not in the car which is covered, in situations such as being hit by a car while a pedestrian.
These are important coverages to have because they safeguard you and your family against the fault of drivers who do not carry enough insurance to cover the damage they cause. It is also usually cheap coverage compared to the benefits you will receive in the event of a serious accident.