Ohio Auto Insurance Basics


Auto Insurance is made mandatory in almost all the states in the United States. The only exceptions are the states of New Hampshire and Wisconsin. Even in these states, financials responsibility is to be shown. Auto insurance is a safety measure. It is to ensure financial responsibility if a driver is in an accident. In case of an accident, the law has to find a person responsible and this person and his insurance company has to pay for the damages caused in the accident. Therefore, auto insurance is very important. The state of Ohio has what is known as FR or financial responsibility laws. Financial responsibility laws ensure that a person has enough finances to pay for the damages in case of an accident. The easiest way to do this would be buying an auto insurance policy.

The state of Ohio has fixed the minimum liability one should have in an auto insurance policy. This is the liability that is mandatory and has to be adhered to. The minimum liability of Ohio State is twelve thousand five hundred per person for bodily injury, a total of twenty five thousand for bodily injury for a maximum of two people. The other part of minimum liability would be property damage. Property damage coverage should be of the amount of seven thousand five hundred dollars.

This is the minimum liability that has to be adhered to. However, the minimum liability is just not enough to cover damages. This might put you in the dangerous position of being sued by the other person involved in the accident. Therefore, it is always a good idea to get insured for more than minimum liability. The industry experts agree that minimum liability is, more often than not, inadequate to cover damages.

There are many other kinds of coverage in Ohio that is not mandatory but are very useful. These include medical payments coverage, Underinsured or uninsured motorist’s coverage, personal injury protection, collision coverage and comprehensive coverage.

Medical payments coverage is mainly for people other than your self involved in the accident. This policy covers any medical expenses the other person might incur.  Insurance companies advise you to use this coverage as soon as possible. It would prevent the other person involved in the accident from suing you. Some policies cover any lost wages as well.

Another policy would be the Uninsured or Underinsured motorist policy. This policy is pretty common. It covers your damages in case the other driver in the accident is responsible for the accident but does not have liability. Underinsured policies cover motorists whose policies do not cover all the damages caused in the accident. These are not mandatory policies in the State of Ohio. However, in a few states on or the other or even both are mandatory.

Personal Injury Protection or PIP covers any lost wages, childcare expenses pain and suffering or funeral expenses. These are charges not covered by medical payments coverage. Physical damage coverage includes collision and comprehensive. Collision covers any charge to repair or replace your car when it is in an accident. Comprehensive policy covers damages caused to your car other than during accidents including rain or hail or even theft.