Why
do you need it?
All
states require you to be financially responsible when driving a
car. Ohio State law (and/or your lender) often requires you to purchase
at least a minimum amount of auto insurance. You may find it prudent
to purchase greater coverage, however, in order to protect your
auto investment, pay for necessary medical expenses, cover your
legal liability, and cover any additional losses related to driving.
Consider the following: if you cause an accident and the other driver
suffers damages over and above your insurance limits, your personal
assets and future earnings may be put at risk.
The
six basic types of auto insurance coverage
Bodily
injury liability: For injuries the policyholder causes to someone else.
Property
damage liability: For damage the policyholder causes to someone else's property (usually
vehicles).
Medical
payments: For treatment of injuries to the driver and passengers of the policyholder's
car.
Collision: For damage to the policyholder's car from a collision. The collision
could be with another vehicle, a light post, a fire hydrant, etc.
Other Than Collision (O.T.C.): For damage to the policyholder's car that doesn't involve a collision
with another car. Covered risks may include fire, theft, vandalism,
falling objects, explosion, earthquake, flood, and civil commotion.
Uninsured
motorist: For treatment of the policyholder's injuries that result from a
collision with an uninsured driver. Underinsured motorist coverage
can also be included in an auto policy. This coverage comes into
play when an at-fault driver has liability insurance, but the limit
of that insurance is insufficient to pay for your damages.
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