Ohio Dealerships' Auto Insurance: Accident Coverage Explained

Car insurance is a necessity for all drivers in Ohio, and dealerships are no exception. The Buckeye State has some of the cheapest car insurance rates in the nation, and drivers are required to carry a minimum level of liability insurance. This includes bodily injury liability coverage of $25,000 per person and $50,000 per accident, as well as property damage liability coverage of $25,000 per accident. These minimum requirements protect other drivers, their passengers, and their vehicles in accidents caused by the insured. Dealerships, like all drivers in Ohio, must abide by these requirements and can face penalties if they fail to do so.

Minimum insurance requirements

In Ohio, drivers are required to demonstrate their financial responsibility in the event of a car accident. While drivers are not technically required to carry car insurance, those who choose to do so must carry certain minimum amounts of coverage.

The minimum amount of auto insurance coverage in Ohio is $25,000/$50,000/$25,000. In other words, in the event of a covered accident, your limits for bodily injury are $25,000 per person, with a total maximum of $50,000 per incident. It also covers up to $25,000 for damage to another person's property.

Ohio law requires liability insurance in order to drive legally in the state. Drivers must carry a 25/50/25 policy limit at a minimum. This means:

• $25,000 in bodily injury liability coverage per person
• $50,000 in bodily injury liability coverage per accident
• $25,000 in property damage liability coverage per accident

While purchasing this amount of coverage satisfies Ohio's legal requirements, it's important to consider that minimum insurance may not cover all damages if you are involved in a serious accident. For example, if multiple injuries occur, you could quickly see the cost exceed your policy limits for bodily injury liability, which would leave you paying out of pocket for the remainder. Minimum insurance also does not cover any damage to your vehicle if you cause the accident—it only covers damage to others' property.

In addition to the above, there are two types of liability coverage that your insurance policy must include:

• Property damage coverage safeguards your assets if you are found legally responsible for a covered accident. It covers certain damage you may cause to the property or vehicle of another party.
• Bodily injury coverage safeguards your assets if you are found legally responsible for a covered accident, including certain expenses associated with bodily harm sustained by the other parties.

Collision coverage

In the state of Ohio, collision insurance pays to repair vehicle damage after a covered accident, including accidents with stationary objects. This coverage is not required by Ohio state law, but it can provide valuable protection in the event of an accident.

When purchasing collision insurance, it's important to understand what is not covered. Collision insurance typically does not cover damage to another vehicle, medical expenses, theft or vandalism damage, collisions with animals, or damage caused by weather or fallen objects. For more comprehensive protection, individuals can opt for comprehensive coverage, which includes protection against these additional risks.

The cost of collision coverage can vary depending on personal factors such as age, gender, marital status, driving record, vehicle type, and location within the state. On average, collision coverage can range from less than $200 to over $500 per year. It's important to note that collision coverage usually comes with a deductible, which is the amount you pay out of pocket before the insurance company covers the remaining costs.

While collision coverage is not mandatory, it can provide valuable financial protection in the event of an accident. If you're leasing, financing, or own a vehicle, consider the benefits of collision coverage to protect yourself from unexpected repair or replacement costs.

Comprehensive coverage

In Ohio, even if you are at fault for the accident and you have a comprehensive policy, your carrier will pay out up to your coverage limits regardless of your fault, contingent upon any applicable policy exclusions. This means that if you are at fault in an accident, your comprehensive insurance will cover the cost of repairing your vehicle, whereas liability insurance will not.

Comprehensive insurance can also cover damage to your vehicle caused by an uninsured motorist. For example, if your vehicle is damaged by an uninsured driver who was texting and ran into the back of your car, your uninsured motorist coverage would pay for the damage. Without this coverage, you would have to pay for the damage yourself or sue the other driver to try to collect reimbursement.

Comprehensive insurance can also be useful if you are in an accident with an underinsured motorist. For example, if you were hit by a driver with only the minimum insurance required by law and your medical bills exceeded their coverage limit, your underinsured motorist coverage would kick in and cover the additional amount.

When considering whether to purchase comprehensive insurance, it is important to weigh the potential benefits against the cost of the coverage. Comprehensive insurance may be particularly useful for drivers who cannot afford to repair or replace their vehicle if it is damaged in an accident. It can also provide peace of mind for drivers who want to be prepared for unexpected situations like theft or falling objects. However, for drivers who feel confident in their ability to cover the cost of repairs or a new vehicle, comprehensive insurance may not be necessary.

Uninsured/underinsured motorist coverage

In Ohio, uninsured/underinsured motorist coverage is not mandatory. However, insurance companies are required to offer a minimum of $25,000 in uninsured motorist bodily injury coverage per person, with a maximum of $50,000 per accident. They must also offer $25,000 in uninsured motorist property damage insurance per accident.

Uninsured motorist bodily injury (UMBI) coverage pays for the medical bills of the policyholder and their passengers injured in an accident with an uninsured driver. The per-person limit is for each injured individual, while the per-accident limit applies if multiple people in the car are injured.

Uninsured motorist property damage (UMPD) coverage pays to repair or replace the policyholder's vehicle. Instead of UMPD, drivers in Ohio can use collision insurance, which covers vehicle repairs after an accident.

Additionally, drivers have the option to purchase underinsured motorist coverage. This includes $25,000 in bodily injury coverage per person, with a maximum of $50,000 per accident. Underinsured motorist coverage helps pay for a car accident if the at-fault driver has insufficient insurance coverage.

While uninsured/underinsured motorist coverage is not compulsory in Ohio, it is still advisable to have it. In Ohio, an average of 13% of drivers on the road don't have car insurance, which means there is a 1 in 8 chance that the other driver won't have coverage if an accident occurs. Car accidents in Ohio can be very expensive.

Penalties for driving without insurance

In Ohio, it is illegal to drive without insurance, and the penalties for doing so can be severe. The state requires all drivers to carry a minimum amount of liability insurance, and driving without it can result in hefty consequences.

First Offense

For a first offense, the driver's license will be suspended until they can show proof of insurance. A $40 reinstatement fee must be paid to get the license back, and there is an additional $50 fee for failing to surrender the license. Drivers may also be required to obtain SR-22 insurance, which is designed for high-risk drivers and can be costly.

Second Offense

For a second offense, the driver's license will be suspended for one year, with limited driving privileges possible after 15 days. The reinstatement fee increases to $300, and there is still the $50 fee for failing to surrender the license. The SR-22 insurance requirement is extended for a longer period.

Third and Subsequent Offenses

For a third offense and beyond, the penalties become even more severe. The driver's license will be suspended for two years, with limited driving privileges possible after 30 days. The reinstatement fee jumps to $600, and the $50 fee for failing to surrender the license still applies. Additionally, the state can impound and sell the vehicle and bar the driver from registering another vehicle for five years.

Accident Without Insurance

If a driver is involved in an accident while uninsured, the penalties can be even more severe. They may be held personally responsible for any damages or injuries caused, resulting in significant financial hardship. Criminal charges, including driving under suspension, reckless operation, or vehicular homicide, may also be brought depending on the severity of the accident.

Other Consequences

Driving without insurance in Ohio can also have long-term consequences, such as higher insurance premiums and difficulty obtaining insurance in the future. It is always advisable to consult with an attorney to navigate the legal system and minimize the consequences of driving without insurance.

Frequently asked questions