Car Insurance Chicago Illinois

by Ed Sneineh,

 This essay list summary of the possible discounts available for consumers shopping for auto insurance. The essay also discusses the one discount that consumers should not ask for. Since insurance is a jurisdictional subject, some of the discussion topics here pertains issues related to the car insurance customers for auto insurance in the State of Illinois.

Unlawful Rebate Vs Lawful Discounts. Using rebates in the insurance business is severely banned.

If and when an insurance agent, not the insurance company, returns any part of their commission to the clients to 'induce' them to buy from the agent then a rebating has occurred. For examples, when an insurance agent provides a $25.00 gift certificate for clients who buys car insurance policy from him or her, then this is rebating, and is strictly illegal. If the agent offers  a $5 lunch card for anyone getting a car quote, or a nice pen for home quote then this is not rebate no purchase necessary. Any materialistic amount given to the consumers in return of them buying a policy is always rebate. Both the agent and the client (if s/he knows) are breaking the law if they are committing rebating.

It will not be classified as a rebate if the home office of the insurance company is returning a premium or any part of it, or is giving the customer a break or an allowance on their insurance premium. The proper term to outline this sound act is discounting. Neither the client Actually discounting is a common practice in situations with intense competition.

In larger cities like Seattle or Chicago, competition between auto insurance companies is severe. There are many insurance companies and thousands of agents and insurance agencies who are competing against each others. Clients should never ask for or accept offers of 'discounts' beyond what the headquarters of the automobile insurance company gives.

Possible Discounts for Clients of Car Insurance Companies in Chicago, Illinois
1. Prior insurance discount. Companies may give you about 10%, more or less, if you had prior insurance, continuously for a minimum of six months. Depending on the insurance company, your prior policy should not have lapsed more than thirty days ago. The longer you had your insurance, the more discount you get. You need to show a proof that you had the car insurance. Statements made by your agent or temporary documents are not good enough. The proof has to be in the form of valid insurance ID card issued by the prior company, not agency, itself, or an authentic copy your contract.
2. Multiple car discount. You get about 10% for insuring more than 2 vehicles on same contract. Take into account that you cannot insure your next door neighbor, or buddy, under your policy. The person insured on the policy has to have 'insurable interest' in the auto we are insuring.
3. Homeowner discount. If you own a home or a condo you may qualify for a reduction in price. Insurance carriers normally ask you for a proof (mortgage payment or home insurance policy) as evidence of home ownership. So if you own a house but the mortgage is under the name of your cousin not qualify you for this discount.
4. Multi account discount. Insuring more than one policy with the same insurance company can earn you discounts. Example, if you buy a home policy or condo insurance policy with the same company you may qualify for a discount on your automobile insurance policy. Some insurers provide deep discount on these home and auto packages.
5. Discount for occasional operator. This discounts is usually applicable in events where number of adult drivers overcome number of vehicles, with additional youthful driver under age 25. Some companies will allow a 'part time' status for the youthful operators in those situations, and a discount is provided.
6. Discounts for good grades. This discount is offered with standard and preferred companies for insured students who keep high GPA their school. The discount is about 5% of the liability premium of the vehicle that is assigned to that particular good student driver.
7. Security alarm discount. This is a small discount of about 5% on the premium of the comprehensive only (not liability or collision premium). Most companies give this discount automatically because most vehicles come with a security alarm anyways.
8. Other miscellaneous discounts like as antilock brake system, air bags, etc. Most of these are negligible discounts and most rating systems already embrace them in the final price.

Ed Sneineh, Chicago Auto Insurance Agent since, former college educator of insurance, & founder of Chicago based Insurance Navy.