Cheap car insurance means not only one with the lowest premium payments but one with the highest coverage and most number of insured risks specifically applicable to the particular consumer. This site contains info on what makes cheap car insurance and also provide basic information on Ohio car insurance and how to get the lowest quotes from auto insurance providers. The discussion will center upon information the reader can actually use as well as provide steps that are practical but can yield substantial results.
Rationale Behind Insurance (The What)
The rationale behind car insurance is to provide the consumer/insured with a risk limiting device wherein for a relatively small amount to be paid on regular installments the insured will be protected from certain allied risks up to a certain fixed amount per risk and/or for the entire coverage. If the risk does not arise then the premium payments and costs are usually uncollectible (in some cases there is a return of capital). Of course if the risk does arise there is a big possibility that the collectible amount will be more than the total costs as well as premiums paid.
Ohio Demographics (The Why)
Weather you live in a big city like Columbus, Cleveland, Cincinnati, Dayton or in a smaller city, car insurance is compulsory for all drivers. The state of Ohio requires car insurance to be within a specific minimum. This is known as the “12.5/25/7.5”. and it means that car insurance coverage should not go below:
- $12,500 for bodily injury coverage; and
- $25,000 for per accident coverage; and
- $7,500 for property damage liability.
The good news is based on a three year trend on car insurance rates Ohio is way below the National median. This means that insurance rates in Ohio are some of the best, meaning lowest in the country. However, the bad news is that as of 2012 car insurance rates have been increasing because of the rise in accidents that result in death, injury, damage to property, etc. However, the real concern is the fact that most surveys show that basic auto insurance quotes do not cut it because some insured risks are useless to a particular individual and most of the threshold amounts do not even come close to paying for indemnification.
Elements of a Cheap Car Insurance (The How)
Flexibility and modification are key. This means that insurers who take a “take it or leave it” stand on their coverage is out! Take note that there are more backward insurers than flexible ones, but you only need to find one from the hundreds if not thousands of providers on the internet. Of course these elements, as mentioned below are not exclusive but should provide the basic structure of worthwhile auto insurance quotes.
- Transparent and actual closing costs: This means that the total cost in applying for and getting approval should be minimal, based on actual costs, covered by sufficient receipts, and made available to the applicant.
- Flexible coverage: Different consumers require different types of coverage. An insurer who does not allow modification and add on coverage may give you very low premium payments but you may find out in the end, when you need it the most, that your “accident” is not covered.
- Short term add on coverage: In most cases you are temporarily placed in a situation that you did not contemplate on your auto insurance, such as a long distance travel thru different terrain or a temporary unavailability of a secured parking slot. Apply for temporary insurance in these cases rather than include it on the actual coverage.
- Flexible cost per risk and total covered amount: Most insurers place a different limit on different types of risks but place an absolute cap on the recoverable amount annually or on the life of the insurance. The best insurance rates allows the consumer to move augment one item with that of another while at the same time maintaining a high recoverable annual cap and lifetime cap.
- No red tape: This means that the claim must not only be processed fast but also without any semblance of trying to find a loophole in the coverage. This is because some providers promise so much but then delay the processing and then deny the same because of some obscure loophole or improperly followed procedure that is more technical than substantial.
- Federally/State Approved: Regardless of how good your insurance provider is, if the same is not sanctioned or below the minimum requirement then the injured party may go after you instead of the insurer. This defeats the purpose of insurance and subjects you to double liability.
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