Liability Coverage
 
Your liability insurance pays for injuries and damages to others caused by an auto accident in which you are at fault. Most states require drivers to carry at least a minimum amount of this type of insurance.
 
There are two kinds of liability coverage:
* Bodily Injury coverage pays for medical bills and other expenses (such as loss of wages, pain and suffering) of persons hurt in an accident in which you are at fault.
* Property Damage coverage pays the cost of repairing vehicles, lamp posts, trees, buildings, or other types of property damaged in an accident for which you are responsible. This coverage does not pay for damage to your own vehicle.
 
Liability coverage limits are usually expressed as a set of three numbers, each of which denotes thousands of dollars. Therefore, 100/300/100 actually means $100,000/$300,000/$100,000. The first number is the maximum amount for bodily injury that will be paid to any one person in any one accident. The second number is the maximum payment, in any one accident, for the combined total of all bodily injury claims. The third number is the maximum payment for all property damage claims in any one accident. A second common expression of coverage is a "single limit liability." In this case the number listed is the coverage for all three types of liability.
 
Most companies offer a variety of liability coverage combinations. With today's skyrocketing medical costs and high vehicle prices, it is important to carefully evaluate your level of liability coverage. Remember, you could be forced to pay out of your pocket for claims that exceed your policy limits. Consult your agent if you are uncertain what level of coverage is best for you.

How are Rates Determined?
 
The overall price of insurance is affected by costs the company incurs for auto repairs, medical payments, legal fees, and other expenses. These considerations affect the rates that everyone must pay. The rising costs of medical treatment and vehicle repairs are responsible for a major portion of most rate increases.
 
The amount you are personally charged, compared with rates charged to others, is determined largely by your driving record. Your premiums are higher if there is a statistically greater likelihood that the company might have to pay a claim on your policy. You pay more if you own an expensive car or a sports car, live in an area with above-average crime rates, drive a lot of miles, have a poor credit rating, or have had accidents or tickets. Your age, sex and marital status affect rates also, with young, single males normally paying the highest prices.

Collision & Other than Collision (Comprehensive) Coverage
 
The two types of coverage that protect your vehicle are collision and other than collision. Most insurance companies no longer use the term "comprehensive"; instead that coverage is called "other than collision."
 
* Collision coverage pays to repair or replace your vehicle when it is damaged in a collision with another vehicle or an object such as a bridge or tree, or if your vehicle overturns.
* Other Than Collision pays for repair or replacement when your vehicle is damaged by a hazard other than collision. Theft, vandalism, fire, glass breakage, impact with an animal, and weather-related damage are covered under this portion of your policy.
 
Collision and Other than Collision are not required by law. If your vehicle is financed, however, your lender will require that you carry these coverages as a condition of your loan.
 
Both Collision and Other than Collision usually carry a deductible, which is a specific dollar amount you must personally pay for each loss. The insurance company will pay any balance that remains after you have met the deductible, up to the market value of your vehicle.
 
Selecting a higher deductible can be an effective way to reduce your premiums. Your rates are lower because the insurance company does not have the expense of processing small claims.
 
If you own an older, non-financed vehicle, you might consider dropping both Collision and Other than Collision coverage altogether. The additional premiums you pay may not justify the small dollar amount you would collect if you had a total loss. Some companies will not write Collision and Other than Collision on automobiles older than ten years.

Steering Clear of Rate Increases
 
Since the cost of auto insurance is influenced by the total amount of money paid in claims, the key to cutting overall cost for everyone is to adopt measures that lower claims.
 
You can help by giving attention to these issues and supporting legislative measures such as:
* Stiffer laws to deter drunk driving.
* More stringent safety requirements for cars.
* Stronger penalties for committing insurance fraud.
* Bills supporting highway improvements.
* Laws designed to reduce theft losses, such as stronger title regulations and more stringent auto registration requirements.
* Stronger mandatory insurance laws to keep uninsured drivers off the road.

Medical Payment Coverage
 
Medical payments coverage pays for medical bills incurred in four ways:
* By you and your passengers as the result of an accident while riding in your vehicle.
* By you and resident family members while riding as passengers in another person's vehicle.
* By you and resident family members if struck as pedestrians by a vehicle.
* By you or your passengers injured while entering or exiting from a vehicle.
 
This type of coverage is designed for claims of relatively minor accidents. If you carpool or frequently carry passengers, you might wish to increase this type of coverage.

Curbing Costs
 
Here are some steps you can take to lower your personal auto insurance premiums:
 
* Increase deductibles on collision and other than collision. Over the course of your lifetime, you will probably file only a few claims against these coverages. If you raise your deductible, you assume the risk for paying the cost of minor damage yourself, while remaining covered for major repairs.
* Drop collision and other than collision. If you own a non-financed older vehicle, you might consider dropping the coverages that pay for damage to your vehicle. If the book value of your vehicle is relatively low, you could be paying high rates for a chance to recover only a small amount of money.
* Maintain a good driving record. Accidents and tickets increase the chances that your insurance company will raise your premiums or cancel your policy.
* Qualify for discounts. Most insurance companies offer rate reductions if they feel the insured driver or vehicle is less likely to incur a claim. Among the more common discounts offered are:
    * Discounts for vehicle safety features such as automatic seat belts, air bags, anti-lock brakes, and anti-theft devices.
    * AAA member discount offered by some insurers.
    * Some insurers offer discounts to members of a carpool.
    * Lower rates if you have home insurance through the same company.
    * Discounts for insuring more than one car.
    * Price breaks for being a long-term customer.
    * Discounts for being accident-free.
    * Special rates for young drivers who maintain good grades.
    * Discounts for college students who are more than 100 miles from home.
    * Discounts for young drivers who have completed an approved driver training course.
    * Discounts for mature operators who take a driver improvement course.
* Choose cars that cost less to insure. When shopping for a car, be sure to check premiums with your agent before you buy. You might also want to purchase a copy of The AAA New Car & Truck Buying Guide, available at AAA offices, which contains valuable information on choosing models, negotiating prices and financing.
* Buy models that fare better in crashes. An annual publication called The Car Book gives information on crash test results for most vehicle models. Consumers Digest and Consumer Reports magazines also contain useful information.

Uninsured/Underinsured Motorist Coverage
 
A significant percentage of drivers carry inadequate liability coverage or no coverage at all. If you are injured by one of these drivers, it could be difficult for you to collect all or part of your medical expenses.
 
Uninsured/underinsured motorist coverage will pay for your injuries and those of passengers in your vehicle, up to your policy limits, if the uninsured driver is at fault.
 
Damage to your vehicle is not covered under this portion of your policy. Collision coverage, if you carry it, will pay for the cost of repairs or replacement, minus your deductible.

Keeping Insurance Up to Speed
 
Here are some tips on getting the most from your automobile insurance after you have chosen the coverages that are best for you.
 
* Carry an insurance card in each of your vehicles for quick reference. (Ohio law requires that you have an up-to-date insurance ID card in you possession)
* Contact your insurance company to report an accident or comprehensive claim promptly after the incident occurs.
* Inform your agent if you have a major life-style change such as moving, retiring or switching jobs. These all affect the amount of miles per week you put on your vehicle, an important rating consideration.
* Evaluate your coverages annually to determine if you need to make changes. If, for instance, you receive an inheritance, you might need to carry higher liability limits in order to protect your increased assets.
* Be sure to contact your agent before you purchase a new vehicle. Not only can the agent make sure the new vehicle is covered from the moment of purchase, they can help compare insurance costs of various models you may be considering.
* Above all, practice safe driving habits, wear seat belts and keep your vehicle well-maintained. These actions will help avoid claims and safeguard the health of both you and your vehicle.

Uninsured Motorist Property Damage Coverage
 
This coverage is only for motorists who do not carry Collision and Other than Collision coverage. If an uninsured motorist is at fault, this coverage would pay for repair or replacement of your vehicle. The maximum payment would be the market value of your vehicle up to $7,500 (can be as high as $10,000). This coverage is inexpensive and would prevent you from having a loss due to someone else's fault.

Auto Insurance Terms
 
Adjuster: A person who evaluates damage and investigates to determine how much or if the company should pay.
Agent: A person who is licensed by the Ohio Department of Insurance to sell and service insurance policies.
Binder: A temporary insurance contract that provides proof of coverage until you receive a permanent policy.
Cancellation: Termination of a policy before its normal expiration date.
Claim: A request for reimbursement for an insured loss.
Deductible: The amount you must pay out of your own pocket for each claim.
Insured: The person or persons covered by an insurance policy.
Insurer: The company which provides the insurance.
Liability: Any legally enforceable obligation.
Liability Insurance: Insurance that pays when you are liable for injuries to other persons or damage to their property.
Non-Renewal: Termination of an insurance policy at renewal.
Premium: The amount you pay for insurance.
Territory: The geographical area in which a company charges the same premiums to drivers with identical characteristics.

Supplemental Coverages
 
Most insurance companies offer several supplemental coverages such as emergency towing services, sound equipment coverage, death indemnity insurance, or reimbursement for rental car charges if you have an accident. Your agent will be happy to discuss the options available under your current policy.