Pitfalls of 'State Minimum Cover'

You have seen the comercials, you have heard the radio ads, and you have grown to love (or hate) the various spokes-characters. The tout the same thing- keeping you legal on the road for less. This may be the best option for some but if you are driving around with state minimum coverage, you are likely leaving yourself liable for a lot of headaches- physically and financially.

In Ohio, the state minimums are as follows:

In Ohio the required minimum for Bodily Injury Liability Coverage is currently $25,000 per person injured in any one accident and $50,000 for all persons injured in any one accident. The required minimum for Property Damage Liability Coverage is $25,000 for injury to or destruction of property of others in any one accident.

To find your own state’s minimum coverages, call a local agent or do a quick online search: {State} minimum auto insurance. If you are considering bare minimum car insurance, here are the needed facts you should know:

When bare minimum makes sense

If you are recovering from a recent bankruptcy, a college student, on a very tight budget living pay check to paycheck, or have little to no assets, then state minimum car insurance may be the only option that fits your budget.  This will allow you to stay legal on the road. However, if this is your situation, consider the following:      

  • Don’t get complacent. As your financial situation changes and hopefully improves, reconsider your auto insurance and see if you can afford to raise your limits.
  • Avoid risky situations. You cannot predict the unpredictable but you can still do your best to high risk situations.

You could be on the hook for a huge bill

If you’re involved in a wreck that injure another party, you insurance may kick in but with minimum coverage, you may exhaust your limits. For example a moderate to severe accident will likely reach costs off $100,000 or more. This would far surpass the Ohio state minimum limits of 25/50/25.

As the at-fault party, you may have to pay the costly fees of defending yourself and even liquefy your assets like your home or car until the debt is fully paid. This would also include the potential of having your wages garnished. It depends on your budget and lifestyle to determine is saving $10-$20 a month is worth the risk of losing so much.

Increase your limits without raising your bill

Insurance companies value mature and experienced drivers with a good driving record. If you fall into this category, finding better coverage may not cost you much more. If you still need to find lower rates, consider asking your agent if you can raise your deductible- out of pocket expenses- instead of lowering your limits. This is the perks of dealing with a local, trusted agent.

Full coverage doesn’t always protect you

Some people will elect to buy comprehensive and collision coverage in addition to the state minimum thinking that this will be enough. We’ll break this one down for you via bullet points.

  • Comprehensive covers losses from theft, flood, or fire, not collisions.
  • Collision coverage covers you in the event of colliding with another auto or object.
  • Liability coverage needs to be enough to protect your assets.    

If you cause an accident and injure the other party, it will be your liability coverage that will be need to pay out the damages.

Better policies offer more perks

When you buy state minimum auto insurance, you are getting exactly that. However, if you elect to purchase a policy that offers better coverage and costs more, the insurance provider will likely offer incentives to lower your bill. Here are a few of the perks that are currently out there:

  • Free roadside assistance
  • Good grades discount
  • Safe driving discount
  • Free or discounted rental car
  • Cheaper home or other insurance when bundling 

These options can provide more value and a better bang for your buck than a state minimum policy.

If this information was insightful or terrifying (because you currently carry state minimum car insurance), then give us a call! We’ll gladly review your policy at no cost.

 

Most Recent

Get to Know GTG - Kevin Toole

By Jay Toole
August 28, 2018 Category: Get To Know GTG

The Toole Family Roots in Bay Village, Ohio The whole Toole Family plus the latest grandchildren at a local 5k run. Growing up in the seventies meant that the door was never locked, short shorts were in style, and Kevin Toole, one of the 3 owners of the Graydon-Toole Group, was out of the house in the morning only to wander back to refuel or get a daily chore done. Being one of three siblings, Kevin and his younger brother, Billy Toole, were known throughout Bay Village for their basketball prowess. They would be the first ones to the park in the morning and the last ones to leave as the basketball court lights shut off at the end of the night. Weekends were filled will cars full of teenagers being shuttled across town to play against anyone and everyone in the Cleveland area who had loved the sport. Seeing Kevins skills in high school and college, one would assume he was one of the lucky ones who was born with the ability and grit to be successful at the physically and

St Patrick's Day and the Most Unlucky of Insurance Claims

By Jay Toole
March 16, 2018 Category: St Patricks Day, Claims

The luck of the Irish is nearly upon us and brings on a moment of reflection.Though many have asked, as far as we know the Toole in Graydon-Toole Group did NOT use to be OToole. That being said, we are still plenty Irish and thus love the festivities that St Patricks Day brings. From parades to morning road races to the are absolute favorite- corned beef sandwiches, we thought today would be a great time some humor. These are our 5 favorite reasons for a claim we have ever seen! Stay safe with whatever adventure you embark on tomorrow and Happy St Patricks Day.

You Should Know: Homeowners Policy - Vacancy Exclusion

By Jay Toole
January 09, 2018 Category: Homeowners, Insurance

Inside your Homeowners Policy there is an exclusion for vacancy. This means that you would not be covered if your property was vandalism or freezing of plumbing if the building was vacant for 60 consecutive days immediately before the loss. Scenerio: Bob has a property across town that he does not live in or rent out. The property has been vacant for 90 days. Some teenagers decided to graffiti the side of the house. This would NOT be covered under his homeowners policy because it has been vacant for 60 days prior to the vandalism. What qualifies a property or building as vacant? A property or building will qualifiy is it has been vacant for 60 consecutive days or more. Are frozen pipes ever covered if the building was vacant? The isured can potentially be covered if they used reasonable care to maintain the heat. Insurance can be boring and confusing at times- but not to us! Have a question on your policy that is stumping you? Give us a call at440-349-3670 or email at Info@I

CONTACTS

  • Address: 5194 Richmond Rd, Bedford Heights OH 44146
  • Toll-Free: 440-349-3670
  • Fax: 440-349-3674
  • Email: info@insureohio.com

Insure Financial Services © , Powered by Virteom