If i had insurance prior to an accident, am i still required to pay the premiums if i already filed a claim?
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Asked August 21, 2018
In Illinois, all drivers must maintain a minimum level of auto insurance that includes a certain level of liability, bodily injury and property damage coverage. This means that if you're on a monthly premium payment schedule, you must continue to pay your premiums on time even if you have an accident and file a claim.
Of course, you don't need to maintain your current premiums if you're told that the vehicle is a total loss. The term total loss refers to a scenario in which the vehicle is valued at an amount far lower than the cost to the insurer to pay for repairs, a rental car or any other expenses related to fixing the damage and returning your vehicle to its previous state. If you have a totaled car and your insurer approves your claim, the claim agent will provide you with a check based on the cash value of the vehicle and any other agreements in your policy.
That said, you should always speak to your insurance agent about these matters instead of making assumptions. Claim, premium payment and other policy-related procedures vary by insurer. Some insurers require policyholders to follow company-specific steps to file a claim and continue or end coverage after an accident. Always check with your agent to confirm the steps you should take to maintain coverage during a repair period. Also, if you purchase or lease a replacement vehicle in a total loss scenario, you must talk to your agent about canceling your old policy and opening a new one. Agents factor in the make, model and age of a replacement vehicle when providing new insurance policy details. Your agent can only provide you with new policy coverage information, including extra coverage options and current available discounts, after you contact them with your new vehicle details.
Answered August 23, 2018 by kai127