Automobile Insurance

November 18, 2024

Why Do I Need GAP Insurnace?

You buy a new car and you finance it and make your payments every month. You drive a lot and put 60,000 mile on your car in one year. Then one year later another driver runs a red light and slams into your car. You, thankfully, are not injured, but your car is a total loss. Good thing you have full coverage. You insurance company evaluates your car and determines the value of your car is $15,000 and will cut you a check for that amount. Unfortunately, you still owe $20,000.00 on your car. You complain about the settlement offer but the insurance company points out that they are only liable to pay the value of your car, not what you paid for it and directs you to Kelly Blue book to verify what your car is worth. You may ask how can I protect myself from incurring a loss in this situation. The personal injury Lawyers of Zneimer & Zneimer, P.C, have encountered this scenario quite a few times and the first thing we ask our clients is whether there was a GAP insurance policy in effect at the time of the accident.

What Is GAP Insurance?

GAP insurance“Guaranteed Asset Protection” is a type of auto insurance coverage that protects car owners from financial loss if their vehicle is totaled or stolen and the payout from their standard auto insurance doesn’t cover the full amount they owe on the car loan or lease.

November 8, 2024

Substandard Insurance Companies Log Numerous Complaints in Illinois

by Zneimer & Zneimer, P.C.

You conscientiously pay your auto insurance premium month after month. You pay extra for full collision coverage. You have never made a claim in years. Then for no fault of your own, someone driving with no insurance rear-ends your vehicle. You are taken to the emergency room in an ambulance and your car is totaled. This is the time when you need your insurance company to come through for you. However, you call the insurance company and wait on hold for 45 minutes. The insurance company takes forever to adjust your claim and when they finally make an offer it is for far less than your car is worth on your car damage claim and they contest your personal injury claim, only offering nuisance value that doesn’t even cover your medical bills. At this time your are wishing that you had picked a better insurance company, even if it would have costed a little more. Completely frustrated, you call the Illinois Department of Insurance to make a complaint but you are told that your complaint will be recorded but the agency is too understaffed to do anything about it. The Illinois Department of Insurance used to post complaint ratios of insurance companies to advise consumers of which insurance companies received the most complaints, but stopped doing that in 2020.

The Chicago Sun-Times recently did a study of Illinois Department of Insurance data and determined a small number of substandard insurance companies account for a large percentage of the customer complaints. The Sun-Times decided to analyze the raw data from the departments webpage themselves for the years 2021-2023 from the departments website. The study revealed that eight substandard insurance companies accounting for 5.28% of the of the passenger car liability insurance market accounted for an stunning 40% of the complaints filed. The study used a formula to compare companies. The complaint ratio was calculated by taking the number of complaints divided by the amount of premiums paid in millions of dollars. Below are the substandard insurance companies that received the most complaints:

First Chicago Insurance of Bedford Park ranked highest in complaints in Illinois in 2023 with 180 complaints according to the Sun-Times article, with the highest complaint ratio of 5.14 which was 39 times higher than State Farm.

January 30, 2023

Shopping for Car Insurance is Important

by Zneimer & Zneimer, P.C.

Car insurance is an essential part of owning a vehicle, and it is especially important in Illinois. The state requires that all drivers carry a minimum level of liability insurance to cover any damages or personal injuries that may occur in the event of an accident. However, simply having the minimum coverage may not be enough to protect you and your assets in the event of an accident.

When shopping for car insurance in Illinois, it’s important to know that there are different types of coverage available. The most basic form of coverage is liability insurance, which covers damages or injuries that you may cause to another person or their property in an accident. However, liability insurance does not cover your own damages or injuries. To protect yourself fully, you should consider additional types of coverage, such as collision and comprehensive coverage. Collision coverage will pay for damages to your vehicle if you are involved in an accident, regardless of who is at fault. Comprehensive coverage provides protection for damages caused by events other than a collision, such as theft, vandalism, or natural disasters.

It’s also important to consider the level of coverage you need. Illinois has a minimum coverage requirement, but that may not be enough to protect you fully. If you have a newer or more expensive car, you may want to consider purchasing higher levels of coverage to ensure that you are fully protected in the event of a crash.