State Minimum Car Insurance To Increase

The minimum amount of car insurance coverage you must have in Ohio is going up this fall. Currently, every driver in the state must carry a minimum of $12,500.00 per person and $25,000.00 per accident in liability coverage. In other words, your insurance policy or financial responsibility bond must pay up to $12,500.00 per person injured, not to exceed $25,000.00 per accident. The new minimum limits will be $25,000.00 per person, and $50,000.00 per accident. The minimum allowable amount of liability property damage coverage will increase from $7,500.00 to $25,000.00.

If you already have car insurance, you do not need to raise your limits until the next time your policy comes up for renewal. If you currently carry state-minimum coverage, your rates will likely increase to pay for the additional coverage.

However, this new law is actually very good news indeed for consumers. If you are struck by a negligent driver who carries state minimum coverage currently, chances are strong that $12,500.00 will be insufficient to pay for all of your damages: Medical bills, wage loss, pain, suffering, inability to perform normal activities, and so forth. Similarly, if you are driving a newer vehicle, and it is damaged or totaled by a careless driver, your loss may well exceed the current $7,500.00 requirement.

Except in the most extreme cases, you should probably carry far more than the state minimum coverage. Despite the television commercials suggesting the contrary, state minimum coverage is rarely a good idea. Speak to a qualified and experienced insurance agent. Chances are that you can obtain far more coverage (say, $100,000.00/$300,000.00) for a premium not that dramatically higher than state minimum coverage. As a general rule, coverage costs marginally less as you increase the amount of that coverage. And always purchase Uninsured/Underinsured Motorist Coverage, which pays you if you are struck by a driver if no insurance or inadequate coverage.