What Happens When You Only Have Comprehensive Coverage on Your Auto Insurance?

When your car breaks down, you might consider suspending your car insurance coverage as a way to save money. Many people find themselves in such situations, especially during periods of uncertainty regarding repairs, depletion of savings, or when planning to replace their vehicles with newer models. This article explores the implications of suspending your coverage to only include comprehensive insurance.

Avoiding Liability With Comprehensive Coverage

Many people choose to suspend their standard auto insurance coverage and retain only comprehensive coverage. This choice is often made because comprehensive coverage is less expensive, particularly when you have no immediate need for the full coverage. Comprehensive coverage provides protection for various types of loss and damage that aren’t covered by the more traditional collision coverage. This includes damage from fire, theft, vandalism, and other non-collision events.

However, comprehensive coverage does not protect you from liability for accidents you cause. If you cause an accident and are determined to be at fault, comprehensive coverage will not cover injuries or damages to other people or their property. Therefore, maintaining a minimum level of liability insurance is crucial if you wish to legally operate a motor vehicle on public roads.

Wisconsin's Winter Driving Strategy

In some places like Wisconsin, drivers often encounter harsh winter conditions. Wisconsin's road department salts the roads, which can lead to additional damage to your vehicle. To avoid such damage and unpleasant surprises, many drivers choose to store their vehicles in the winter and suspend their policy during this period. Suspension of collision coverage with retention of comprehensive coverage is a cost-effective solution for drivers who only use their cars for short periods.

When you stop using your car for a significant period or during certain seasons, you can contact your insurance agent and request a suspension of collision coverage. This suspension typically comes with a disclaimer to hang in your vehicle, reminding others that your car is not insured for road use. The comprehensive coverage will remain active, providing protection for potential incidents like theft, fire, or storm damage. This strategy allows you to save on premiums during a time when you have no immediate need for the full coverage.

Legal Requirements in Illinois

In Illinois, as in many other states, liability insurance is mandatory, but comprehensive coverage is optional. While you cannot purchase comprehensive coverage without having some level of liability coverage, the minimum required amount of liability insurance can often be very low, making the costs manageable. For example, in Illinois, the minimum required liability insurance is $20,000 for bodily injury and $50,000 for property damage.

Therefore, you must always have at least this minimum level of liability coverage to legally drive your car. If you fail to maintain this minimum coverage, you risk facing legal consequences including fines and the potential to have your vehicle impounded.

aNote on Comprehensive Coverage Without Liability

While some states allow you to have comprehensive coverage without liability, it is generally not recommended. Comprehensive coverage is designed to protect your vehicle from damages not covered by collision coverage. If you have no liability coverage, you run the risk of being financially responsible for any damages you cause to others if an accident occurs. Maintaining a balance between comprehensive and liability coverage ensures that you are protected in various scenarios while still saving on premiums for periods when you do not need the full coverage.

Conclusion

Retailing and managing your auto insurance is important for financial planning and road safety. By understanding the distinctions between comprehensive and liability coverage, you can make informed decisions that suit your specific needs. Suspension of collision coverage with retention of comprehensive coverage is a savvy strategy under certain circumstances, but always ensure that your coverage meets legal requirements and adequately protects your interests.

FAQ

Q: Can I have comprehensive coverage without liability coverage?
A: In most states, including Illinois, you cannot have comprehensive coverage without liability coverage, as it is legally required to have a minimum level of liability coverage. However, the type of comprehensive coverage and the specific amount of liability coverage you choose can vary based on your needs and budget.

Q: What should I do if I plan to store my car for the winter?
A: Contact your insurance agent to suspend collision coverage while keeping comprehensive coverage active. Ensure you receive the necessary paperwork and reminders for others to post in your vehicle to prevent accidental use.

Q: What happens if I don't maintain a minimum level of liability coverage?
A: If you don't maintain a minimum level of liability coverage, you will be in violation of state laws and could face legal consequences, including fines and potential vehicle impoundment.