Auto Insurance Coverage Myths

Auto insurance coverage myths

Common myths about auto insurance revolve around uninsured or underinsured motorist coverage and total losses.

In Ohio, many drivers may take their auto insurance coverage for granted. After all, everyone on the road should have at least the state-required minimum. While this may seem like something that should be true, according to the Ohio Department of Public Safety, approximately 87,000 uninsured drivers were involved in a car accident over the course of a year. This lack of insurance could leave the other party liable even if the accident was not his or her fault. Because car accidents can lead to uncertainty, drivers should take the time to understand their insurance policy.

Myth: Uninsured or underinsured coverage is extremely expensive.

Because there are so many drivers who do not have adequate insurance, it is often a good idea to get coverage that protects the insured from those lacking insurance. However, because an uninsured policy is not mandatory in Ohio, some people choose not to get this coverage in an attempt to save money. When it comes down to it, uninsured or underinsured motorist coverage costs an average of 5 percent of an annual car insurance premium according to Insurance.com.

With a fairly small ticket price, uninsured or underinsured coverage can save anyone who has been involved in an accident a lot of hassle. A typical insurance policy of this nature is designed to pay for bodily injury done to the insured in a collision. Some policies may even be able to pay for the health care of any passengers who were in the vehicle at the time of the accident.

Myth: Taking legal action is as good as having uninsured coverage.

Suing the at-fault driver after a car accident may help the injured party get compensation for medical bills. However, the problem is, on average, those who are uninsured or underinsured do not have the assets necessary to pay for the medical bills that build up after a collision. Having this type of insurance policy is often more useful because the provider has the money to pay medical bills quickly. Car accident victims may get the most benefit out of a combination of legal action and uninsured coverage.

Myth: Insurance companies will pay off the lease or loan of a car after a total loss.

Some drivers choose to buy full coverage with the hope that, if an accident does occur, the loan they have on their car will be completely paid. In some circumstances, this might be the case. However, insurance companies are not required to pay the total amount left on the lease or loan. Instead, the provider simply has to pay the current market value of the vehicle before the crash. This gap in coverage could leave vehicle owners paying on a car they no longer own.

Even before the added stressor of a collision, it can be hard to understand the nuances of auto insurance in Ohio. A knowledgeable attorney may be able to help injured parties understand their coverage after a car accident.