Know Your Policy

There is more information in an insurance policy than most care to read…. But you should! Are you covered? More importantly, are your covered enough? Ohio’s state-minimum-coverage limits are too low to protect the assets of most motorists. Unless your income and assets are minimal, buy at least $100,000 per person, $300,000 per accident. Property-damage liability covers repair or replacement of other people's cars and property. State minimum limits average about $15,000. With the average cost of a new car at $30,000, however, buy at least $35,000 in coverage. When a hit-and-run driver, or someone who is inadequately insured, strikes your car, uninsured-motorist and underinsured-motorist coverage pays for the medical costs of the victims in your car.

This crucial coverage also insures your household members as pedestrians. Buy this coverage at the same limits as your bodily-injury liability coverage. The following definitions are crucial to you and your policy: Collision: Pays to repair or replace your car after an accident. If you have bought or leased a new car with a loan, you will be required to buy this coverage and a deductible will apply when you use this coverage. Liability: Pays to repair or replace the other person’s car if you are at fault after an accident and a deductible does NOT apply when you use this coverage. Liability coverage is required by law in the state of Ohio. Comprehensive: Pays if your car or its contents are stolen, or if your car is damaged by fire, water, or other perils. Lenders will also require this coverage. Rental insurance: It costs only a few dollars per year, certainly a worthwhile expense if you need to get to and from points A & B while your vehicle is in the collision center. Park your teens in one car. Name teenagers as the occasional drivers of your least-expensive car, and make sure they only drive that car.