August 31st, 2010
Home and Auto insurance premiums in Ohio are partly determined by your insurance score. An insurance score is not a credit score. It is a predictive model that tells an insurance company how likely you are to have a claim. The evidence is overwhelming that people with good scores have fewer claims, and are more “profitable” to insurance companies.
Before insurance scoring, insurance companies considered the type of car you drove, your driving record and claims history, age, etc. to come up with a premium to charge you. These days, for some insurers, your insurance score is the primary factor they use in determining rates. We all have a credit score, and many people know what theirs is. This is not so with insurance scores as insurers often have their own scoring models.
It’s clear that in Ohio you can keep your homeowners and car insurance premiums as low as possible by having a high insurance score. Since your insurance score is a snapshot of your insurance risk based on credit report information that reflects payment patterns, and gives more weight to recent information, there are a few things you should know. First, only apply for and open new credit accounts as needed. Responsible use of credit over time can improve your score. Secondly, keep balances low on unsecured revolving debt such as credit cards. High debt can affect your score. Finally, pay bills on time. Delinquencies can have a major negative impact on your score. It pays to shop around for home and auto insurance, and we can help!
Tags: insurance score, insurance score ohio, ohio auto insurance, ohio car insurance, ohio homeowners insurance
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August 18th, 2010
In Ohio, if you own a vehicle, you must either have liability insurance or some other proof of financial responsibility, to comply with the State’s law. Many people don’t realize that it is illegal for the vehicle owner to allow another person to drive their car without proof of liability insurance or proof of financial responsibility.
What exactly is required if you purchase insurance?
Insurance is most commonly purchased to comply with this requirement. The State of Ohio sets “minimum” amounts of bodily injury liability and property damage liability. Specifically, $12,500 per person injured in any one accident and $25,000 for all persons injured in any one accident is the bodily injury liability requirement. The required minimum for property damage liability is $7500 for damage to another person’s property, usually, but not always, another vehicle. The insurance company will issue insurance cards for each vehicle insured and these should be kept in the glove box. You can also request duplicates to carry with you.
If you don’t own an automobile, but still drive, you need to be financially responsible. You can easily obtain a “named operators policy”. Most insurance companies don’t write these and the premium is based on your driving record, insurance score, where you live, how much liability limits you need, and a few other factors. We can help you with this.
Although I don’t personally know of anyone who has complied with the State of Ohio’s financial responsibility requirements by NOT buying insurance, options do exist to do exactly that. You can apply with the BMV and if acceptable, they would issue a certificate proving financial responsibility. Options include having money or government bonds in the amount of $30,000 on deposit with the Treasurer of the State, owning real estate with at least $60,000 in equity, having more than 25 vehicles registered in their, or a company name, or obtaining a $30,000 bond from an authorized surety or insurance company.
The State of Ohio sets minimum amounts of liability protection that every driver must have. Make certain you have coverage that is at least equal to your assets. The law allows victims to take your assets to satisfy a judgment against you!
Tags: ohio auto insurance laws, ohio auto insurance requirements, ohio car insurance laws, ohio car insurance requirements
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June 8th, 2010
More than ever, consumers are looking at price as the chief consideration when making buying decisions. This is understandable given the economy, but it’s also very dangerous. If you only look at pricing, you’re not going to get any more protection than the State of Ohio, or your bank or mortgage company requires. You could be left paying out of pocket, or worse, selling assets to satisfy a judgment against you. Below are thoughts on auto, home and term life insurance in Ohio.
Ohio car insurance is very competitive, with millions of dollars spent in advertising every week. Most of these commercials tell you how much the average person that switched saved. While there aren’t as many different coverage considerations as there are with Ohio homeowner insurance, companies do have different guidelines for settling claims and raising rates. Information is power, and you’ll want to find out if the carrier uses aftermarket body parts. Also, how much will your policy increase if you have a ticket or a claim. Is there a dollar threshold for a claim that won’t cause an increase?
Homeowners insurance coverage in Ohio varies drastically between companies, even when the amounts of coverage and deductibles look the same. Many carriers are mailing out quotes that have important coverages “gutted out”, to keep the price low. You need to know whether or not you have “All risk” perils on your home and personal property, the amount that will be paid if your home is destroyed, and about exclusions in the policy. A covered claim on one policy can be a huge out of pocket expense on another.
Term life insurance is becoming commoditized. Once you settle on the amount of coverage and the length of the term you need, understanding a few things about the product, you can choose a carrier on price. First, make certain that the carrier is highly rated for financial strength. You need to feel confident that the insurer will be able to pay the claim when they’re asked to. Make certain the policy provides premiums that are “guaranteed” not to increase throughout the policy term. Many policies allow you to “convert” the policy to a permanent plan of protection without showing evidence of insurability. Not all companies allow you to do this at any time throughout the policy term, so make certain you’re comfortable with this provision.
Ohio insurance policies are legally binding contracts and most people benefit from the expertise and guidance of an independent agent. Policies are not standardized, meaning company A can, and does, have different policy language than company B. If your home or condominium is your biggest investment, don’t choose an inferior policy to save a few dollars unless you understand the risk. Be informed with car insurance, as 1 speeding ticket may increase your premium dramatically with the new company you’re considering. With term life insurance, you might be able to choose a product on price, if you know what your needs are and are comfortable with the few things we discussed. Taking the time to understand the differences between them, and choosing a policy that fits your needs and budget will protect your assets best and help you sleep better at night.
Tags: ohio auto insurance, ohio car insurance, ohio homeowner insurance, ohio life insurance, ohio term life
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