Ohio Auto Insurance Liability Coverage

​There are a lot of older vehicles whose value is not high enough to make it worth carrying comprehensive and collision coverage, which is what actually covers the vehicle you're driving. However, as it is in almost every state, you are required to carry at least the state minimum liability auto insurance coverage to drive legally.


     You may not understand the terms and the numbers when selecting the amount of liability coverage you wish to carry. This article is to help eliminate that confusion, and let you understand exactly what you need to know as far as coverage is concerned.




First of all what is liability auto insurance coverage?


Liability covers you if you're at fault in an accident in which you caused injuries and/or property damage to others as a result. The bodily injury part of liability coverage takes care of the injuries and the property damage coverage takes care of the property damage. Both pay up to the limits you choose to carry.


Understanding what the numbers mean with liability coverage


There are two ways a company may offer liability coverage. The most common way is split limits. Some companies also offer combined single limits liability coverage. Let me explain both.


      Split Limits Coverage: With companies that offer split limits liability coverage, you will see those levels of coverage expressed in terms of three numbers. Common examples would be 25/50/25 (which Is Ohio's state minimum,  50/100/50, 100/300/100, 250/500/250. Let's break down what those numbers mean:

• The first number represents how much in bodily injury damage the policy will pay maximum to any one person.

• The second number represents the total amount of bodily injury coverage that the policy will pay if there are multiple people injured.

• The third set of numbers represent the amount the policy will pay total for any property damage you caused.

• All numbers are represented in terms of thousands of dollars.

     So for example, if you have 100/300/100 in liability coverage: $100,000 is the most this policy will pay for any one person's injury $300,000 is the maximum this policy will pay for all injuries, and $100,000 is the maximum this policy would pay for property damage.




Combined single limits coverage:  With combined single limits coverage the body injury and the property damage are all combined together and the total amount that this policy will pay for Liability (both injuries and property damage) is expressed as one grand total. So if you have a liability policy with a combined single limit of 500, this means that your policy will pay up to a half  million in total liability for body injury and property damage.

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Other key points about state minimum liability coverage that you need to know:
    

• Just a few years ago, Ohio raised its state minimum liability coverage requirement. Before it was 12.5/25/7.5. Now, it is 25/50/25. Because of this increase, a lot of drivers wrongly conclude that the state minimum requirement is adequate. However, this is far from the truth:

 

• State minimum liability coverage will only cover you adequately for minor accidents. For major accidents, it's not nearly enough coverage! 25,000 is the most it will pay for any one person's injuries. Someone could run a hospital bill way beyond that with only a one or two night stay in the hospital. Also, if you hit a very nice vehicle or hit multiple vehicles it won't take much to exceed the $25,000 maximum either.  If your policy maxes out before paying all injuries or property damage you caused, you could be on the hook for the difference.

 

• Low levels of liability coverage also limits your own coverage as far as uninsured motorist coverage is concerned. You can not select levels of uninsured motorist coverage any higher than what you selected for liability. So far selecting low levels of liability, you also screw yourself!

 

• Choosing low levels of liability can also limit the amount of discount you can get for policies in the future. Auto insurance companies give significant and sometimes big discounts for those who have already carried continuous liability auto insurance coverage for at least six months.... Many companies determine the level of discount by the level of liability coverage you're carrying. For example, someone who has been carrying 50/100/50 in liability will get more of a discount than someone with 25/50/25.... Someone with 100/300/100 will get a higher discount than someone with 50/100/50... and so on....

 

• Liability coverage is NOT unit priced! That is, doubling your level of liability coverage will not cost anything close to double the price.... In many cases, doubling your level of liability coverage only raises premium only about $2-3 a month... And quadrupling liability coverage only raises premium by about $5-10 a month. Before you choose a level of liabilty coverage, at least take a look at the price of the next higher level or two.... The price may surprise you!

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