Chicago, Illinois area insurance agency
Akey Financial Services
40w 148 Campton Crossing Drive
Suite A
St. Charles, Illinois 60175
Kane County, IL
(630) 232-9811
Toll Free: 877-232-9899
Fax: (630) 232-9829
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Glossary for Illinois Auto Insurance Terms
A - G
L - V
What auto insurance is designed to cover. Accidents may be considered
either at fault or not at fault. If you have at fault accidents on your driving
record, your rates will be higher.
Additional Insured or Additional Interest
A person or entity, other than the named insured, who is protected under the
named insured's auto policy. If an auto is leased, the leasing company may
want to be listed as an "additional insured" as well as a lien holder.
Anti-Theft Device
Devices designed to prevent theft or vandalism of a car, truck, motorcycle or
other vehicle. Some anti-theft devices can assist in the recovery of a stolen
vehicle and in most cases can reduce your auto insurance premium.
The legal definition for causing physical harm to another person.
**The information, pictures, and other content in this website about particular
insurance services is only provided for informational purposes. Any decisions
regarding your insurance needs should be discussed with a licensed insurance
agent.
A special type of car insurance coverage, which applies to collector cars, that
could not be otherwise insured through regular methods.
Collision Insurance
A policy that covers the damage to your own vehicle in the event of an accident.
Comprehensive Coverage
A policy that covers the damage to your car, truck, motorcycle, or other
vehicle which was not caused by an auto accident. Some examples of non-
auto accidents include the following: theft and vandalism.
The minimum amount you will have to pay before your auto insurance policy
begins to reimburse you for your loss. Typically, policies with a higher
deductible will require lower premiums for you to pay.
Defensive Driver Course
Courses offered by the Illinois Department of Motor Vehicles (DMV) or
by other approved companies that teach safe automobile driving. Upon
completion of such a course, you may become eligible for lower auto
insurance rates.
Driver Education
A course accredited by the Illinois Department of Motor Vehicles (DMV),
consisting of at least 30 hours of professional classroom instruction.
The date on which your auto insurance policy begins to cover you against
losses and is not necessarily the day you agree to the coverage or pay for
the coverage.
A requirement by a state regulatory entity (usually the state Motor Vehicle
Department) for an insurance company to certify on a driver's behalf that
the driver has the ability to pay future claims up to the state required limit.
The certification is done by means of a form called an SR-22.
Often required when buying or leasing a new car. A gap auto insurance
policy insures you for the difference between what you owe on your car
and what your insurance company says it's worth.
Insurance coverage to protect against claims alleging that negligence or
inappropriate action resulted in bodily injury or property damage.
Longevity
Insurance companies often reward their long time customers with lower auto
insurance premiums. An insurance company may provide a discount after an
insured has been with the company for a specified amount of time.
Medical payments coverage, also called personal injury protection, or PIP,
covers the cost of injuries to you, your family, and your passengers.
Multi-Car Discount
Discount often given when insuring multiple vehicles under the same auto
insurance policy. You will usually save over having separate policies for each
car.
An individual identified on the auto insurance policy as an excluded driver.
This option is most often utilized for teen-aged family members, whose
inclusion in the policy would raise the premium substantially.
Insurance companies often use your occupation and the distance that you
drive to work every day to calculate risk.
The cap amount an insurance company will pay for all claims arising from a
single incident. In an auto accident, it comprises bodily injuries sustained by
all parties. When Bodily Injury auto insurance coverage is purchased in split
limits, the second limit is the "per occurrence" limit.
Example: $50,000 per person and $100,000 per occurrence
Per Person Limit
The cap amount an insurance company will pay for any one person's
injuries arising from a single incident. In an auto accident, it comprises
bodily injuries sustained by each person. When Bodily Injury auto
insurance coverage is purchased in split limits, the first limit is the "per
person" limit: Example: $50,000 per person and $100,000 per occurrence
Personal Auto Policy -PAP
Personal auto insurance policies are the most common type of auto insurance
sold. They include coverage for liability, medical payments,
uninsured/underinsured motorist coverage, and physical damage protection.
Personal Injury Protection or PIP
Coverage usually includes benefits for medical expenses, loss of income,
essential services, accidental death, funeral expenses, and survivor benefits.
This insurance coverage is currently required in less than 15 states.
Premium
The cost of your auto insurance coverage policy.
Property Damage Liability
Coverage for physical damage caused to property when the insured person
is liable.
A requirement by a state regulatory entity (usually the state Motor Vehicle
Department) for an insurance company to certify on a driver's behalf that
the driver has the ability to pay future claims up to the state required limit.
The certification is done by means of a form called an SR-22.
Uninsured motorists bodily injury insurance coverage pays for an insured
person's bodily injuries for which an uninsured or hit-and-run motorist is
legally liable, but unable to pay. This insurance coverage must be available
for purchase in most states but is usually not required to be purchased.
Underinsured Motorists Bodily Injury
Underinsured motorists bodily injury insurance coverage pays for an insured
person's bodily injuries for which a person with not enough insurance is
legally liable. This insurance coverage must be available for purchase in
most states but is usually not required to be purchased.
The Vehicle Identification Number is a 17 digit number that is unique to your
car. The VIN tells the company, the make, model, body type and year of the
insured vehicle. The Vehicle Identification Number is located in several places,
including the title to your vehicle, your vehicle registration, your insurance
card, your auto insurance policy, the dashboard of your vehicle, and the driver
side door of your vehicle.
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