Chicago, IL (PRWEB) July 09, 2013
In Illinois, motorists could soon be paying more for auto insurance. As of June, the House passed legislation, which raises minimum liability requirements on all auto insurance policies, that could translate to an increase in premiums, as reported by The State Journal-Register on May 26, 2013. When the insurance liability rates were set 24 years ago, they were in line with costs. However, today, they fail to keep up with the rising cost of medical care, argues Rep. Laura Fine, the bill’s sponsor.
To date, Illinois is noted to have the lowest requirements for auto insurance in the Midwest. The current rates of $20,000 for bodily injury and $15,000 for property damage have not changed in over 20 years, despite costs changing elsewhere. If someone were to be injured in an auto accident and face hundreds of thousands of dollars in medical care costs, liability insurance would only cover $20,000 of that cost for the injured, which is not enough, Fine argues.
The bill, which passed by a 70-41 margin, requires the minimum limits to increase:
Opponents of the bill argue that increasing the limits, which will increase insurance premiums, will only add to uninsured motorists. At Metropolitan Insurance Service Consultants, Inc., the local agents do not want Illinois residents to worry about their insurance premiums. Understanding how risk is calculated is the first step to combating high premium quotes.
In terms of auto insurance, risk is typically calculated with a few variables and from that risk, a premium rate is determined.
The minimum requirement increase could cost Illinois motorists about $75 more per year on their auto insurance premiums. However, the anticipation is that it will save people who are injured in an accident from out-of-pocket medical costs.
Obtaining affordable auto insurance in Illinois does not have to be difficult. Those residents looking to understand their risks or obtain a policy or make changes to their coverage should give the local agents at Metropolitan Insurance Service Consultants, Inc. a call today.
About Metropolitan Insurance Service Consultants, Inc.:
Located in the bustling city of Chicago, Metropolitan Insurance Service Consultants, Inc. has been servicing the needs of Illinois residents for over 50 years. The combination of local expertise and insurance experience has been the foundation for their services. Since 1959, the goal has been to provide the best services at the best prices for every client – no matter what the needs are. Representing over 15 different insurance companies enables the agents to work to make anything possible – protecting families, dreams and the future of every client who comes to them. At Metropolitan Insurance Service Consultants, Inc., one call can do it all.