Consumer Resources
What is insurance?
At its core, insurance is the financial safety net that protects our homes, automobiles, businesses, and loved ones from unexpected costs that come from covered events.
Key Terms:
- Policy: A written contract for insurance between you and your company.
- Premium: The amount you pay to your insurer regularly to keep a policy in force. Your payment plan will depend on your insurance company and your specific policy.
- Deductible: The portion of a covered loss you pay before the insurance company becomes responsible for the payment under the policy.
Why do I need insurance?
For drivers…
In Ohio, it’s illegal to drive any motor vehicle without proof of financial responsibility, which for most Ohioans means purchasing insurance. If found in violation of the financial responsibility law, the penalties increase with each subsequent violation.
Without auto insurance, if you cause a crash with property damage and/or bodily injury, the costs could be financially devastating.
For homeowners…
While Ohio law does not legally require anyone to have homeowners insurance, you should still strongly consider it. Additionally, homeowners who finance their home with a mortgage will most likely be required by their lender to have insurance coverage.
In the case of all types of insurance, it can add predictability and stability to your budget and future financial plans.
Below are common types of property and casualty insurance:
What’s not covered?
When shopping for any type of insurance, ask your agent or representative what’s not covered by the policy. All policies contain exclusions and it’s best to find out ahead of time what will not be covered in the event of certain losses.
Keep in mind: Most insurance policies typically include a deductible, which must be met before your insurance provider will begin coverage.
How do I purchase insurance?
In Ohio, consumers have many choices for insurance. You can start by visiting the Ohio Department of Insurance’s website to find a list of companies licensed to sell insurance in Ohio: https://insurance.ohio.gov/consumers
Consumers have a few ways to purchase insurance. Some insurance companies sell policies to customers directly, while others have local agents who work with customers. You can also contact an independent agent or agency that offers a variety of policies from several insurance companies.
A list of OII member companies can be found here.
Ways to Save:
- Ask your insurance provider about discounts. Sometimes you can get one for having a home security system or bundling your different types of insurance with one company.
- Consider choosing a higher deductible. Your premium payments will be lower.
- Make sure your policy provides enough coverage for what you own. It’s helpful to create a home inventory for this purpose.
- Being a safe driver pays off. Generally, a driver with a solid record of safe driving will save more on their premiums than a driver with a history of unsafe habits.
- Also, don’t forget to shop around. Ohio has a robust insurance marketplace, which means consumers have access to some of the lowest insurance premiums in the nation! Check out several insurers to compare costs and find the coverage that works best for you.