Top 5 Mistakes Illinois Residents Make When Buying Insurance
Buying insurance is one of the most important financial decisions you'll make, whether it's for your home, car, or personal protection. However, many Illinois residents unknowingly make costly mistakes that could leave them underinsured or paying too much.
Here are the top five pitfalls to avoid—and how to make sure you're getting the best coverage at the right price.
1. Not Shopping Around for the Best Rates
Illinois has a competitive insurance market, yet many residents stick with the first quote they receive. While loyalty to an insurance provider is great, it doesn’t always mean you're getting the best deal. Different insurers assess risks differently, meaning another provider might offer the same coverage for a lower price.
🔹Solution: Get multiple quotes from different insurance companies. You might be surprised at the savings!
2. Choosing the Cheapest Option Without Checking Coverage
In Illinois, minimum auto insurance requirements are $25,000 per person and $50,000 per accident for bodily injury liability, plus $20,000 for property damage ([Illinois Secretary of State](https://www.ilsos.gov/)). Many drivers opt for the bare minimum to keep premiums low. However, in an accident, the costs can quickly exceed these limits—leaving you personally responsible for the rest.
🔹Solution: Work with an insurance agent to find a policy that balances affordability with comprehensive coverage.
3. Ignoring Discounts and Policy Bundles
Many Illinois residents pay full price for their insurance without knowing about the discounts they qualify for. Bundling home and auto policies, maintaining a clean driving record, installing safety features, or even being a loyal customer can bring down your rates.
🔹Solution: Ask your insurer about all possible discounts. You might be eligible for savings you didn’t even know existed!
4. Not Reviewing Policies Annually
Life circumstances change—whether it’s buying a new home, upgrading your car, or even adding a teen driver to your policy. Unfortunately, many Illinois residents don't review their insurance regularly, potentially missing out on better coverage options or savings.
🔹Solution: Set a reminder to review your insurance policies annually. If your needs have changed, so should your coverage.
5. Forgetting About Illinois-Specific Risks
Illinois weather can be unpredictable, from harsh winters to summer storms. Many homeowners assume their standard policy covers flood damage, but most policies don’t include flood insurance—a big risk for those near lakes or river basins.
🔹Solution: Consider add-ons like flood or sewer backup insurance. If you live in areas prone to severe weather, check your policy for gaps in coverage.
