Once you are in an accident, it is too late to chance your insurance policy. Therefor a few minutes reviewing your policy now can be very important later. Adequate auto insurance coverage is critical even if an accident is not your fault.
Liability Coverage
Ohio law only requires that each driver maintain liability insurance in the amount of $12,500. This is usually only enough to cover the smallest injury situation. ZKB Law recommends that you carry a minimum of $100,000 in liability coverage. If you own property or have other assets that exceed $100,000 in value, you should seriously consider higher limits.
Uninsured/Underinsured
Many drivers are uninsured or underinsured. If you are involved in an accident with an uninsured driver, you will be totally dependent on your own insurer to pay your medical bills, repair or replace your vehicle and compensate you for your pain suffering, lost wages and disability.
Ohio law also requires that your insurance agent offer you uninsured/underinsured limits equal to your liability limits. You should always take this coverage.
Uninsured/underinsured (sometimes called “U”) coverage protects you, your family, members of your household and your passengers for personal injuries sustained as a result of the negligence of an uninsured or underinsured driver.
Collision & “Loan/Lease Gap”
Most of you know that collision coverage pays for the repair or replacement of your vehicle, irrespective of who is at fault. You are only required to pay the deductible.
But did you know that your collision coverage will probably not cover the cost of your loan or lease payments if your car is less than two years old and you made the standard down payment? That is because the value of the auto is less than the balance due on the loan or lease. Some companies offer a special coverage called “loan/lease gap” coverage which will pay the difference between the fair market value and your financial obligation.
If you have any questions about your policy coverages, talk to your agent. If you still have questions, or are involved in an accident, call us immediately.