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Frequently Asked Questions

Below are some of our frequently asked questions.  If you have any other questions or concerns, please feel free to contact us via the web, or come and visit us at a location near you.

What is liability insurance?


Liability insurance covers you on anything for which you are found legally liable, whether you kill or injure someone or damage their property, up to the limits stated in your policy.  Your liability insurance also provides your legal defense in the event of an accident, and would pay your legal obligation.  Liability also covers you for injury if you are struck by an uninsured or hit and run driver.



What is full coverage insurance?


Full coverage is liability plus physical damage.  Physical damage is the portion of the policy which covers your car for any damage due to an accident, fire theft, vandalism, etc.



What optional coverage is available?


On liability policies, you have an option to add Medical Payments and/or Uninsured Motorists Property Damage

Medical Payments pays for reasonable and necessary medical and funeral expenses incurred as a result of an auto accident, up to the policy limit.

Uninsured Motorists Property Damage will cover damage to your vehicle if you have an accident with an at-fault, identifiable uninsured vehicle.  The amount of coverage is $15,000 or the actual cash value of your vehicle, whichever is less, subject to a $250 deductible.

On full coverage policies, you have an option to add Medical Payments, Towing and/or Rental Reimbursement.

Towing coverage will reimburse you up to the policy limit, usually $25 or $50, for a tow necessitated by the disablement of the vehicle described in the policy.


Rental Reimbursement will pay for the cost of a rental car, up to the policy limit when you rent a car due to a covered loss. 



I live in Illinois, do I need to purchase insurance on my auto and my motorcycle?


Yes.  The law states that any motor vehicle must carry liability insurance.  Failure to do so may cost you up to $500 in fines, suspension of your license plates, suspension of your driver’s license, and a required SR22 Financial Responsibility filing to the State of Illinois.



Why should I purchase insurance from an Independent Insurance Agency, like Aarco American?

Unlike State Farm, Geico, or Allstate, who represent their own company, Aarco American, as an Independent Insurance Agency, represents many fine insurance companies.  It’s our job to shop for you.  This also means we are more flexible and can handle almost any insurance problem.

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