If you require an SR22 filing in the state of Ohio but you do not own a car, there are two options that will satisfy the requirement. The first option is a Financial Responsibility Bond. The second option is a Named Operator auto insurance policy.


What's the difference between a financial responsibility bond and a named operator policy?

• Financial responsibility bonds only offer liability coverage. Named operator policies generally offer liability, uninsured motorist and medical payments coverage.
• Financial responsibility bonds usually cost less than named operator policies.
• Named operator policies usually offer higher levels of liability coverage while financial responsibility bonds usually only offer state minimum liability coverage.

 Some other key points to know about the similarities

• Both are considered secondary coverage, which means that the vehicle owner's auto insurance pays out before these do. Both the named operator and financial responsibility bond are intended to cover you in case the owner neglected to carry coverage (or enough coverage).
• Neither policy is intended for vehicle owners. Although some (not all) financial responsibility bond companies cover owned vehicles, it is highly risky to do so because of the very limited and inadequate coverages.
• Unlike regular auto insurance, both of these policies only cover the named driver. Neither will cover any other driver.
• Neither policy covers comprehensive or collision coverage.

 Summary:
If you're just looking for the cheapest way to keep an SR22 filing in force, a financial responsibility bond is the cheaper option. However, you're normally limited to state minimum liability coverage and that's it! Some drivers are ok with that, knowing that the vehicle owner has better primary auto insurance coverage. However, if you want to add uninsured motorist and/or medical payments coverage, you will need to go with the named operator policy.




Click here to get a quote for a financial responsibility bond.



Click here to get a quote for a named operator policy.

What Does Progressive Snapshot Record?
Progressive's Snapshot Program records the following:

• How many miles you drive (less than 15,000 annual miles earns a discount).
• How often you brake suddenly.
• How often you drive between the hours of midnight and 4 a.m.

Those are the only three things Progressive takes into consideration when calculating your auto insurance discount. The less you do of all three of the above, the greater your discount will be.
There are other things that Snapshot records:

• Whether or not the device stays plugged in while it is calculating your discount. You can not unplug the device and drive hundreds of miles and think you can fool the system.
• Your speed is recorded, but contrary to popular belief, the device has no way of knowing whether or not you are speeding. That's because the device does not detect whether you are driving in a 25 mph zone or a wide open freeway.

 

What Progressive Snapshot Does NOT Record?
   There are a lot of myths out there that won't go away. Here's the truth:

• Your rate will not increase because you speed. I hear this one all the time, but many people that have a habit of speeding believe this will cause to rates to increase.... Not true! Speeding will not affect your rate or your snapshot score. (But of course, getting a speeding ticket might!)
• Trying snapshot WILL NOT raise your rates. I can say it 100 times and people still won't believe it. But rates can only go down, they can never go up.

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The term "full coverage" has become such a popular buzzword when it comes to auto insurance that it leads to false impressions. In auto insurance lingo,  having "full coverage" simply means having both comprehensive and collision coverage on your vehicle.
In reality: THERE IS NO SUCH THING AS "FULL COVERAGE".
For Example:

• Having comprehensive and collision coverage has nothing to do with liability coverage. Liability coverage is always included in an auto insurance policy, but the limits of liability coverage can be set at state minimum limits (which can be very skimpy in most states).
• Having comprehensive and collision coverage has nothing to do with uninsured/under-insured motorist coverage. Those coverages are very important, and in many states they are mandatory. But in states in which uninsured motorist coverage is optional, not having it opens up a big risk.
• Having comprehensive and collision coverage has nothing to do with Medical Payments/Medical Benefits (again depending on which state you live in).
• Most policies have a deductible for both comprehensive and collision coverage. So even though you have physical damage coverage on your vehicle, if there is a deductible, there is an out of pocket expense.

Summary:
    Understand that there are several key parts to an auto insurance policy, and the term "full coverage" only applies to two of those parts. Just because you have what many call "full coverage" doesn't necessarily mean your coverage overall is adequate.

If you would like a review of your auto insurance policy, feel free to give me a call or drop me an email. I'll be happy to explain any questions you have.


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