The state of Ohio (and many others) requires you to carry financial responsibility or minimum auto insurance if you have a valid driver license
- EVEN IF YOU DONT OWN A VEHICLE -
Under Ohio's tort system you can be held liable for actual damages (property damage & medical expenses), economic damages (lost wages & earning capacity) and emotional/physical pain & suffering.
The minimum limits of coverage in Ohio is $25,000 bodily injury per person, $50,000 bodily injury per accident and $25,000 for property damage. You may see this on your policy listed as 25/50/25 or something different if you have purchased higher limits.
The expandable list below provides an outline and brief description of the parts and other components in a typical auto policy.
Your liability limit PROTECTS YOU when you are held responsible or found negligent in an accident. Whether you are held in whole or partially at fault this will pay for damages, medical expenses, lost wages and other consequences suffered by those injured as a result of the accident.
Physical Damage Coverage
Physical damage is the general "group" term to describe Comprehensive and Collision coverage of the auto policy. They can be purchased together or separately and added to most vehicles. Prices very on a large magnitute of factors and include but are not limited to the type and age of the veh, driver history, loss expereince and garaging location. When purchased these cover the damage to your vehicle.
Medpay coverage is available on auto policies as an optional coverage. It covers you and any passengers in your vehicle, any pedestrians you may injure, and you—if you are riding as a passenger in another vehicle or are injured by a vehicle as a pedestrian, bike rider, or public transportation rider.
Uninsured and Underinsured
Uninsured and underinsured coverage is an addition to your auto policy that depending on which state you reside can either be optional or mandatory. Your insurance carrier can provide this separately or combined. In Ohio, it is an optional coverage and we typically see it listed combined. For example: Uninsured/Underinsured Bodily Injury $100,000/$300,000.
Additional & Optional Coverage (Endorsements)
Most insurance carriers provide serveral additional coverages that can be added (endorsed) onto an auto policy. The most common is transportation expense and road service. Other options can include loan/lease GAP, better or new car replacement and other enhancements.
you are buying a vehicle of significant value.
you are financing a new or used vehicle without a large down payment creating a "gap between the value and your loan.
you do not have significant cash savings that would allow you to cover the difference between your loan and the actual cash value of the vehicle if it were totaled or stolen.