Why Ohio Has Some of the Best Car Insurance Rates Around

Why Ohio Has Some of the Best Car Insurance Rates Around

If you live in Ohio and own a car, then you’re in luck. Ohio is considered one of the most affordable states when it comes to the best car insurance rates in US. On average, the typical driver in the US pays around $1,311 per year for auto insurance, while in Ohio, drivers tend to pay roughly $843 per year. As such, this rate is considered the second lowest when compared to the national average.  

From this figure, it’s easy to deduce that the Buckeye State is ahead of the curve in terms of affordability. But, why might this be the case? Here are five reasons that Ohio has some of the best car insurance rates on offer.

best car insurance rates in Ohio

1. The Minimum Coverage Requirements in Ohio

As with all states, Ohio car insurance law stipulates a few minimum requirements when it comes to coverage. Bodily Injury Coverage and Property Damage Coverage are auto-insurance requirements in most states, and Ohio is no exception. 

A minimum of $25,000 to insure against injury or death of one person, $50,000 to insure against the death of multiple people and $25,000 to insure against property damage is all that’s needed by law to insure yourself on the road. While these minimums are inline with the national average, the fact that Ohio only outlines these three stipulations is partly the reason behind the lower than average premiums. For example, in states such as Connecticut and Illinois, drivers must have uninsured motorist coverage in addition to Bodily Injury Coverage and Property Damage Coverage which, in turn, drives up premiums.

That said, Ohioans may experience higher premiums if they take out additional coverage. Opting for the minimum coverage requirement is not the best choice for everyone; if you have a more expensive car or want more personal injury cover, choosing a higher level of cover may be a better option. What’s more, the minimum coverage amounts have not been updated in years and hence have been called into question, especially in lower minimum liability states like California.

2. The Ability To Choose from best car insurance rates

More choice equates to a more competitive offering, and that’s certainly the case in Ohio. The Ohio Department of Insurance remarks that insurance is less expensive in Ohio due to the number of providers available. 

Insurance providers must be more mindful of their prices to compete with one another. With this in mind, it makes sense that drivers are able to more easily find an insurance company that will offer them a premium that suits their budget. That way you can always be sure to pick the best car insurance rates for your vehicle.

 3.  Cheaper Insurance Rates for People with Good Driving Records

A driver’s record can have a major impact on their insurance rate. Essentially, a person with a better driving record typically enjoys lower car insurance than someone with a history of at-fault accidents. As such, Ohio drivers without a history of causing an accident can generally save 34% on their car insurance premium. But why?

Well, Ohio is an at-fault state, which means that after an accident, the driver at-fault is responsible for compensating the affected party. Car insurance laws in Ohio protect drivers from incurring any additional costs in the event of an accident, where they are not at fault. So, if you’ve got a good driving record, the likelihood of you making a claim is lowered and thus insurance companies are happy to offer a lower premium inline with the perceived risk. 

As a comparison, in no-fault states, an insurance company would need to pay out even if the driver was not at fault. It is perhaps no surprise then that no-fault states such as Michigan and Florida have some of the most expensive insurance rates in the country.

4.  Young Drivers Can Enjoy Cheaper Rates

Younger, more inexperienced drivers are generally classified as being a highly ‘at-risk’ group when behind the wheel. As a result, drivers aged between 16 – 25 will typically have to pay extremely high auto-insurance costs and premiums. But, young drivers in Ohio are considered more fortunate than their other US counterparts as they pay approximately $1,400 less than the national average.

5.  Drivers Can Take Advantage of Several Discounts

Undeniably, where you purchase your insurance policy will determine what discounts are on offer. However, most insurance companies in Ohio have a diverse range of benefits to entice potential customers. Drivers in this state can take advantage of discounts including safe driver discounts, good student discounts, anti-theft discounts as well as a multi-car discount.

 6.  Ohio Offers A Sponsored Program to Help High-Risk Drivers

In Ohio, there is a state-sponsored insurance program that helps drivers who have trouble being approved for the state-required minimum coverage. This program was designed to assist high-risk drivers who otherwise would not be eligible for coverage. Entitled the Ohio Automobile Insurance Plan, this program is comprised of an organization of a number of insurance companies who collectively share the risk of covering eligible at-risk drivers. 

So, if you’re an Ohioan driver, car insurance doesn’t need to cost you a fortune, it could even reduce your financial stress. Shop around, understand the coverage you need and you’ll get the best deal for your needs and best car insurance rates.

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