FRIDAY, JANUARY 29, 2021
Understanding Auto Liability Insurance
By law, Ohio requires most registered drivers to carry auto liability insurance if they want to keep their driving privileges. This is an essential piece of coverage that acts as a core support system when it comes to ensuring public safety. It addresses the fact that all drivers face dangerous risks behind the wheel, and they have an obligation both to watch out for themselves and for everyone else on the road.
Some people find the concept of liability insurance hard to understand, but you must have it if you want to remain a restriction-free Ohio driver. Let’s take a deeper dive into the ins and outs of coverage.
What is auto liability insurance?
Each state determines its own auto insurance laws for its registered drivers and insurance carriers. Ohio uses an at-fault insurance system, which means that any driver who causes a wreck (meaning they are at fault for it) must pay for their own damage and the harm they cause others.
Auto liability insurance is the coverage that will compensate third parties on the at-fault driver’s behalf following the accident. Therefore, it will help the policyholder avoid having to pay for these losses out of their own pockets. The requirement to carry liability coverage exists because of the state’s at-fault accident laws. It ensures that, since a driver might be responsible for an accident, they should at least be able to repay others for the harm they caused them.
What does this coverage contain?
All Ohio drivers must carry at least the following coverage:
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$25,000 bodily injury liability coverage per person
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$50,000 bodily injury liability coverage per accident
Here’s how each component of coverage works:
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The limit on your per person bodily injury coverage is the maximum your policy will pay for a single third party’s injuries in an accident. It might help them cover medical bills, lost income and other costs related to their recovery.
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Your per accident bodily injury coverage limit is higher than your per-person coverage because it reflects the maximum amount the policy will pay for all injuries in an accident, regardless of how many people get hurt.
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Property damage liability coverage is the maximum amount a car insurance policy will pay for third-party property damage in an accident. So, if you cause damage to multiple vehicles aside from your own, your policy will still only pay to its limits for the cumulative damage costs rather than extending those limits per vehicle.
The minimum limits required by law are only the minimum, and we highly recommend that you carry increased liability coverage. It can provide you with a significant additional assistance following an at-fault accident, which is critical to your ability to settle your debts with others.
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