The state of Ohio is currently one of the states in the U.S. with the lowest car insurance rates. In fact, it has even made the “10 least expensive states for auto insurance” list. While the average premium in Kentucky is around $2,050, Ohio residents are paying approximately $1,037, which is a significant difference. Cleveland, in particular, is one city that offers some of the lowest rates. Detroit Free Press pointed out that a new resident in the city only had to pay $65 a month for a Honda Accord and a couple in their 30’s only had to pay about $100 each month for two vehicles.
While paying a lower premium may be helping Ohio residents save some of that hard-earned money, one source is saying that paying less out of pocket for auto insurance “provides a far less extensive safety net” than states like Michigan that have no-fault insurance coverage.
Here’s what Detroit Free Press is saying about Ohio’s “affordable” insurance coverage.
Ohio operates under a tort-based system. This “is a system where the driver who is at fault for causing a traffic crash is responsible for paying the victim’s medical expenses and compensating for additional damages, such as loss of wages and “pain and suffering” [Source: Rocky Mountain Insurance Information Association]. Ohio isn’t the only state that has elected to operate under a tort-based insurance system as many other states have opted out of following no-fault insurance laws and choosing this as their alternative option.
But, Ohio personal injury attorneys have determined that “medical costs and economic losses for severely injured people can quickly exceed the maximum thresholds in a typical Ohio auto insurance policy.” In some of the worst cases, people risk losing their homes, are forced to declare bankruptcy, or spend down their assets so they can qualify for Medicaid. Another issue that has arisen with cheap insurance premiums is that when an accident does occur, many Ohio residents are only carrying the minimum requirements which is 25/50 bodily injury liability coverage. This coverage will only provide $25,000 per injured person and $50,000 for the total injuries everyone sustained in the vehicle.
So, when a person is found at-fault for causing a crash and are only carrying the minimum amounts, who is to pay for the remaining expenses that have arisen as a result of the accident? While the victim of the car accident can hire an Ohio accident attorney to help recoup the remaining amounts, it has been revealed that “many defendants lack the personal assets to make such an effort worthwhile.”
So, what happens to a family whose “breadwinner” is unable to work after sustaining a severe injury in an auto accident? If they aren’t able to receive the money from the insurance policy because the limits were so low, and the at-fault driver has no assets, where are they expected to get this money from? In Michigan, a driver would be protected by their no-fault insurance and would likely receive coverage for their medical expenses and even 85% of the “breadwinner’s” lost wages. Perhaps this is one of the

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reasons why the source has identified an issue with the lower, more affordable insurance rates offered to Ohio residents.
In any event, whenever you are involved in an auto accident in Cleveland, regardless of whether you think the at-fault party has assets or not, it is in your best interest to consult with a Cleveland accident attorney. Not only can they help you understand the insurance claims process but can determine if there is potential money that can be recovered for the serious injuries you have sustained.
If you would like assistance in finding a local Cleveland accident lawyer now, call today.

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