With the economy in the shape it is in, I have noticed that more people are downgrading their car insurance liability coverage to state minimum levels to cut down on their expenses.
When times are tight, and corners need to be cut, it makes sense as to why liability coverage gets slashed.
After all, liability insurance never pays a dime to the person who pays the premium.
So why splurge? But what may surprise many people is just how little protection you get with state minimum liability auto insurance in Ohio.
If you're liable in an accident that causes bodily injury, Ohio's state minimum bodily injury liability pays the 2nd lowest of any state (other than Florida).
If you're liable in an accident that causes property damage, only four states pay less than Ohio (CA,MA,NJ PA).
Specifically, Ohio's state minimum liabilty pays up to $12,500 for bodily injury per person up to $25,000 total, and up to $7500 for liability property damage.
This causes 3 significant risk exposures: 1.
if you injure someone badly enough to exceed $12,500 in injuries.
2.
if you injure multiple people exceeding $25,000 in injuries.
3.
if you cause more than $7500 in property damage.
Of course, I do not have to tell you how easy an accident can exceed those levels.
If you are at fault in an accident in which either the bodily injury or property damage is beyond the state minimum liability, you may be held responsible for the difference.
You could very well face a lawsuit by either the person(s) your injured/damaged their vehicle, or you could be sued by their insurance company.
Obviously, there's a conflict of interest here.
My job is to up-sell you on as much coverage as you are willing to accept.
Believe me! I would make more commission if I were to up-sell you in other areas besides liability coverage.
I just wanted to point out the short comings in Ohio's state minimum liability law requirement.
Not to mention that in many cases, you can double or triple your level of liability coverage for only 5-15 bucks a month.
Food for thought.