Ohio Car Insurance Guide
If you own a car or truck, then you should know the importance of carrying auto insurance.
Not only is purchasing auto insurance a smart decision - it is also the law in all 50 states.
When shopping for auto insurance coverage, there are many components to consider, from what types of costs are actually cover to how much coverage is enough. There are also several discounts that can help make paying for auto insurance more affordable.
What Does Auto Insurance Cover?
There are five primary types of coverage provided by auto insurance. Knowing what is covered by each type is essential in selecting the right coverage to meet your needs:
- Bodily Injury Coverage: This coverage option protects the policyholder against legal claims that are made by other injured drivers if the policyholder is found to be at fault for an accident.
- Liability Coverage: This coverage option protects policyholders if the policyholder damages any property in an vehicular accident.
- Collision Coverage: This coverage option provides coverage of any costs associated with damage to the policyholder’s vehicle that is caused by a stationary object, such as a parked vehicle.
- Comprehensive Coverage: This coverage option provides coverage of any costs associated with damage to the policyholder’s vehicle caused non-vehicular events, such as fire, theft or vandalism.
- Uninsured or Underinsured Motorist Coverage: This coverage option protects the policyholder if the policyholder is in an accident that is caused by a driver with little or no insurance.
Knowing How Much Coverage is Enough
In almost every state, drivers are required by law to carry a minimum level of auto insurance coverage in order to protect other drivers on the road. In Ohio, the state minimum coverage is 12.5/25/7.5, meaning that drivers must carry $12,500 for bodily injury for one person, with a maximum of $25,000 for all injured persons, and $7,500 for property damage.
In an effort to save money, many policyholders tend to purchase the minimum coverage required by their state. However, state minimum limits often are not enough coverage to provide sufficient financial protection for the policyholder.
Take the average cost of a hospital stay for example. According to the U.S. Department of Health and Human Services, the average cost associated with an average hospital stay of 4.6 days was $23,958 in 2006.
Then, consider what the impact would be if you carried only Ohio’s minimum auto insurance coverage. With an average hospital stay costing close to $24,000, there is a good chance that your bodily injury limit of $12,500 would not be nearly enough to cover the full expenses.
If the health care costs of a person you injured in an accident exceed your policy’s limit of $12,500, the injured party could come after your assets to make up the remaining costs.
What Auto Insurance Discounts are Available
In an effort to make auto insurance more affordable for their policyholders, many insurance companies offer an array of discounts. Some of the most common discounts include:
- Multiple Policy Discount, which can save policyholders money by combining two or more insurance policies, such as an auto insurance policy and a homeowners insurance policy, with the same insurance company.
- Safe Driver Discount, which can save policyholders money if their driving records are free of any moving violations for a certain period of time.
- Anti-Theft/Safety Device Discount, which can save policyholders money if their vehicles include anti-theft devices, such as an alarm, or certain safety features, such as airbags.