There are many hazards when driving, from slippery roads to distracted drivers and wandering deer. Car insurance protects your investment from these risks, but many drivers aren’t sure why they need it or what their policies cover. Below are answers to a few frequently asked questions about auto insurance to help clear up any confusion.

FAQ About Car Insurance Coverage

How much insurance are you required to carry?

Every state requires drivers to carry insurance to protect everyone else on the road. In Ohio, it’s illegal to drive without at least $25,000 in liability coverage per person, $50,000 per accident, and $25,000 in property damage.

What happens if the damage from an accident exceeds my policy limits?

If you cause an accident, your car insurance company will cover any losses up to the limits of your policy. If the other driver’s property damage and medical expenses exceed that amount, they could sue you for the rest, which is why many agents recommend carrying liability insurance equal to the total of all your other assets.

How do insurers calculate rates?

All insurance premiums depend on how likely the carrier thinks you are to file a claim. To determine your risk, insurers weigh a wide range of factors, including your age, where you live, and the vehicle you drive. Your driving record and credit score also affect the costs of coverage.

Can you lower premium prices without giving up coverage?

Car insurance rates constantly fluctuate, so shop around and compare prices when your policy is up for renewal. Keeping your car in a garage, taking a safe driving course, and avoiding traffic tickets will also reduce your risks and insurance rates.

For over a century, Hummel & Plum Insurance Agency has helped families throughout Chillicothe, OH, protect themselves from the unexpected. As independent agents, they’ll compare car insurance policies from a variety of carriers to find the option tailored to your needs. To speak with an agent and request your free quote, call (740) 773-1620. Visit them online to learn more about their services.