Most Ohioans complain about the cost of their car insurance--hardly surprising, given that a typical car insurance policy in Ohio costs at least several hundred dollars a year. Depending on your age, driving record, and other factors, your annual premium can be significantly more than that. So how can Ohioans lower their premiums and save money?
If you own a car in Ohio and drive it, going without insurance is not an option. In Ohio, you are required by law to purchase a minimum amount of liability coverage. And you should probably have more than just the bare minimum if you want to provide yourself with adequate protection. There are steps you can take, however, to reduce your auto insurance costs without having to cancel your policy. Some or all of these steps may be appropriate for you, depending on your circumstances.
Specific ways to save money on car insurance in Ohio:
-
Increase your deductible.
For many people, raising the deductible on their auto insurance is a good way to cut the cost of the policy. Sometimes you can reduce your annual premium by 10 percent or more if you increase your deductible from, say, $250 to $500. If you do this, however, make sure you have the financial resources to handle the larger deductible when the time comes.
-
Narrow the scope of your coverage.
One seemingly obvious solution is to eliminate certain types of coverage from the policy. Ohio requires you to have liability coverage, but other non-mandatory coverages may be expendable. Be careful, though, because you don't want to be underinsured if you're in an accident. Even though medical payments, uninsured motorist, collision, and comprehensive coverages may be optional in some states, it's usually not advisable to get rid of them altogether.
-
Shop around.
One of your first steps should be to shop around. A particularly good time to investigate your alternatives is when your current policy is up for renewal, especially if you find that your premium has gone up. You may be surprised to learn that auto insurance premiums for the exact same coverage on the same car can vary widely (by hundreds of dollars) between different insurers, even in states that regulate auto insurance rates.
-
Keep an eye on your credit report.
Your credit history is an important factor for most auto insurance companies. Many studies have shown a correlation between your credit history and the risk to an insurance company. Paying your bills on time and maintaining a good credit history will allow you to enjoy lower auto insurance rates.
-
Drive less.
If you drive less than a certain number of miles in a year (e.g., 7,500), you may qualify for a low-mileage discount. If your insurer offers this discount, try to limit your driving as much as possible. If you commute to work, use public transportation instead of driving. When you go away on vacation, fly or take the train.
-
Don't use your car for business purposes.
Since work-related driving generally subjects you to a higher premium than pleasure driving, it may be in your best interest to stop using your car for business purposes.
-
Don't use your car for business purposes.
Since work-related driving generally subjects you to a higher premium than pleasure driving, it may be in your best interest to stop using your car for business purposes.
-
Drive more safely.
You may be eligible for a price break on your policy if you maintain a clean driving record for a specified period (usually three years). A clean driving record generally means no accidents, serious moving violations, drunk driving convictions, etc., during that period. The best way to qualify for the applicable discount is to drive carefully and defensively at all times.
Please note that this description/explanation is intended only as a guideline.