Drivers who only carry the state minimum auto coverage could be doing others a ‘great disservice.’
According to auto insurance guru Howard Ain, although anyone involved in a car accident would be relieved to know that the other party has insurance coverage, it should be a ‘real shock’ to find out that the other driver only carries minimum coverage (even if it is a requirement in all US states).
Ain cited the example of a resident from New Richmond who got into an accident after getting hit by a woman driver who only carried minimum insurance. In the ordeal, two women and a child were all injured but were immediately rushed to the hospital. The resident called the insurance company of the driver who caused the road mishap. After which, the resident found out that the woman only had $7,500 worth of insurance. The resident’s car needed more than $6,000 for damage repair and even much more required for other vehicle that got hit. Medical bills amounted to around $10,000, far exceeding the minimum coverage.
In this scenario, Ain explained that the woman may have benefited from the medical insurance of the resident but the car remained totaled. The woman, who initiated the road mishap, was cited by the traffic authorities. Since all the woman had was minimum coverage, and she was also filing for disability, the resident felt that she had done ‘a great disservice.’
Minimum insurance in Ohio, in actuality, is not able to cover much in the event of a crash. $7,500 minimum property damage insurance is usually not enough to cover both damaged cars. Moreover, the $12,500 medical coverage (per person) may not also be enough for severely injured drivers.
Ain warns car owners who only have minimum coverage that they could be held personally liable if their insurance coverage is exhausted after covering the cost for being at fault in an accident.
There are only four other states in the nation that compel owners to possess minimum insurance that costs less than Ohio.
Indiana and Kentucky both compel policyholders to get double the amount of coverage for bodily injury and also $10,000 for property damage.
The Insurance Information Institute urges all drives to possess at least $300,000 per accident, and $100,000 for bodily injury protection (per person).
One out of every six drivers in the nation may not have adequate auto insurance, according to Ain. He urges all drivers to buy underinsured and uninsured coverage. This may not be too much of a financial burden and it will offer substantial protection to cover bodily injury costs and to cover repairs for the vehicle.