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Ohio Auto Insurance FAQ

Ohio auto insurance FAQIf you’re an Ohio resident, you’ll most likely have a few questions regarding your Ohio auto insurance policy.  Look no farther.  Read on and find out the most frequently asked questions (FAQ) surrounding Ohio auto insurance.

Ohio Auto Insurance FAQ: What Is Auto Insurance?

These questions address the intricacies of the most basic auto insurance terms:

What Is Liability Coverage?

Liability coverage insures you against the cost of injury and damage you cause to another person or vehicle in an automobile accident.  There are two components of liability coverage: bodily injury liability and property damage liability.  In Ohio, this is best stated as 12.5/25/7.5.  This just means that you need $12,500 worth of coverage per person up to $25,000 per accident and $7,500 worth of property damage liability. 

What Is Collision Coverage?

This coverage helps pay for the fair market replacement of your car in the event of an accident.  This is always an optional policy and often requires a deductible.

What Is A Deductible?

A deductible is the amount of money you agree to pay before your auto insurance company begins paying for damage to your vehicle.  Deductibles are there to help reduce the cost of auto insurance.  The higher the deductible you are able to pay, the lower your overall auto insurance premium will be lowered.

What are SR-22 Forms?

SR-22 insurance is sometimes required for high risk drivers.  It is usually filed with the state before the purchase of car insurance.  The form requires the state to be notified in the event an auto insurance policy is cancelled.  Multiple speeding tickets, DUI’s, and driving without a valid drivers license are reasons for Ohio residents to have to file a SR-22 form.  It generally lasts for three years after the initial event.

What is GAP Insurance?

GAP insurance is an optional policy you can purchase and is very useful for drivers who have a newer vehicle.  It insures the driver for the difference between the financed value and the fair market value.  Should you total your car, GAP insurance covers you for the amount you still owe on the car rather than the fair market value, which is the depreciated value of your car.  GAP insurance is inexpensive and is recommended if you have just purchased a new vehicle.

Ohio Auto Insurance FAQ: How Does Auto Insurance Work?

This set of frequently asked questions involves the intricacies of your car insurance policy and how everything works.

How Is My Premium Set?

There are a lot of factors considered when auto insurance companies set your premiums.  You age and gender is considered as well as where you live and what kind of car you drive.  They also look at how much coverage you want and your overall driving record.

Can My Premiums Increase?

Yes.  Your premiums can increase if the state of Ohio decides to allow a rate increase.  That means everyone in the state will see a premium rate increase.  Your premiums can also increase if you get into an accident.  It can also increase if you switch insurance companies without shopping around first.  Not all companies charge the same amount of money for the same insurance.

Will Teenage Drivers Make My Policy Increase?

Usually, yes.  Teens fall into a high-risk age group.  Insurance companies compensate for this by raising your rates.  There are however, discounts available for good students, those that drive older model cars, or those who take driver’s education classes.

Does My Credit Score Affect My Premiums?

Your credit score can affect your insurance premiums.  It is an understood fact that those who are careful with money are careful in driving.  This isn’t always true, but most auto insurance companies believe that the higher your credit score is, the lower the risk you are to them of filing an automobile insurance claim.  If your credit score isn’t perfect, you’ll have to make sure to pay your bills on time every month and try to keep your credit cards well under their maximum limits.  This will help boost your credit score and it can ultimately lower your Ohio automobile insurance premiums.

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