Pavarini on How Much Insurance You Need

By Phil Pavarini Jr

When you stop at the next traffic light, look at who is driving next to you. Then consider this: About one in eight drivers in Ohio are uninsured. And they’re responsible for three out of four accidents.

How do you determine how much coverage you need?

We're all short on funds. And who wants to make the insurance companies rich? Many decide to get state-minimum insurance coverage. But that doesn't come nearly close enough to fully protect you or your assets if you're in accident.

When to consider state minimum:

When you are unemployed, have few assets, do not own a car or home or business, and no family to depend on you.
When you have health insurance and are not concerned with lost work or pain & suffering reimbursements when in accident with one of the estimated 1.1 million uninsured motorists.
When you drive older vehicle and do not need repair or replacement when involved with uninsured motorist.

Our minimum recommended coverage is at least $100k/300k/50k with under/uninsured motorist and $5,000 in medical payments. In Ohio, as of Dec. 2013, state minimum auto liability is $25,000 per person, $50,000 per accident bodily injury and $25,000 property damage per accident. Our agency also requires same limits for under/uninsured motorist, and $1,000 medical payments (similar to PIP in other states).

Besides various forms of liability insurance, if you own a vehicle, there is collision and comprehensive auto insurance coverage to consider. They cover damage to the policyholder's car resulting from running into anything, another car, fire hydrant, light post, or in case of theft, fire, falling objects, explosions or other unexpected problems. Most leases and loans require this type of coverage.

Many feel insurance is wasted money. I've heard it misrepresented as "legislated extortion.” Insurance will be needed at some point. That’s why you need to carefully consider what you expect will happen if you have accident with how much you pay for insurance. We can help you…just ask!