source: www.portclintonnewsherald.com
January 29, 2009
In these tough economic times, many people may be tempted to reduce the amount of auto insurance coverage they have or drop their auto insurance altogether in order to save money.
Ohio Department of Insurance Director Mary Jo Hudson is urging Ohioans to carefully consider the risks of doing so before making a decision.
“If a person drives without auto insurance, they will be breaking the law,” said Director Hudson. “Also, many Ohioans think they can save money by purchasing only the bare minimum requirements. While minimum coverage does cost less, Ohioans need to realize that auto insurance minimum requirements don’t always provide adequate coverage in the event of an accident.”
Ohio law requires drivers who purchase automobile insurance to demonstrate Financial Responsibility to have at least $12,500 of Bodily Injury or Death Liability Coverage per person ($25,000 for two or more persons), as well as $7,500 of Property Damage Liability Coverage for any one accident. However, many times accidents result in damages that exceed those minimum coverage limits.
If the at-fault driver’s insurance policy limits are exceeded, then the at-fault driver may be personally responsible to pay the difference not covered by the automobile insurance policy.
If the driver didn’t have the funds to pay for the damages, they could face legal action and long-term debts. If the driver’s child was driving a car that was underinsured and was in an accident, they too would be held responsible for any damages and could face significant debt. The driver and the driver’s family could end up paying for one accident for the rest of their life.
The department strongly encourages consumers to talk with their insurance agent to discuss the risks of only getting the bare minimum levels of insurance.
The Department’s Auto Insurance On-Line Toolkit, available at www.ohioinsurance.gov, provides guidance on auto insurance needs for different life stages, information on state minimum requirements and a list of frequently asked questions about auto insurance.
There are also links to the Bureau of Motor Vehicles and National Association of Insurance Commissioners’ web site.
Ohio drivers with questions concerning Financial Responsibility requirements are encouraged to call the Bureau of Motor Vehicles at 614-752-7500 or visit the Bureau’s web site at www.bmv.ohio.gov.
Ohio insurance consumers with questions and concerns about their insurance can call the Department’s consumer hotline at 800-686-1526. Free information can also be obtained at www.ohioinsurance.gov.
Auto Insurance
