5 Essential Automobile and Property Insurance Coverages

When you are purchasing automobile and property insurance in the State of Ohio, it is extremely important that you have the following insurance coverages:

1) gap insurance

2) rental coverage insurance

3) uninsured/underinsured motorist coverage

4) medical payments coverage

5) mold coverage

Let’s take a closer look at each.

Gap Insurance

Gap insurance coverage is coverage that pays the difference between the actual cash value received for your car and the amount left on your car loan if your vehicle is totaled in an auto accident. This is essential coverage because, in many cases, we have seen the insurance company pay our clients less on the fair market value of their vehicles than what they owe on their car loans. Gap coverage will cover this difference in the event this situation occurs.

Rental Coverage Insurance

Rental coverage insurance is coverage that provides you with a rental vehicle in the event your car is damaged in an auto accident or your vehicle is stolen. Rental reimbursement coverage provides a vehicle rental in the event your car is damaged or stolen.

Uninsured/Underinsured Motorist Coverage

When you are involved in an accident caused by the owner or operator of an uninsured vehicle or someone who fled from the scene of the accident and has not been found, uninsured motorist coverage provides you with coverage for you, the resident members of your family, and your passengers up to the limits of your automobile coverage. You and your family members are also covered in the event you are pedestrians and you are struck by the owner or operator of an uninsured vehicle.

When you are involved in an accident and when the at-fault driver’s policy limits are less than your underinsured motorist coverage limits, underinsured motorist coverage provides injury coverage to you, the resident members of your family, and all of your passengers for up to the policy limits.

If you are involved in an accident with a negligent uninsured motorist, uninsured motorist property damage coverage provides coverage for all of the damage to your vehicle. The coverage amount can be anywhere between $7,500 to $15,000 and includes a deductible of usually between $500 to $1,000.

It is essential that you request that your insurance agent provides you with uninsured motorist coverage, underinsured motorist coverage, and uninsured motorist property damage coverage. Ohio law no longer makes it mandatory for your insurance agent or your auto insurance company to offer you Ohio uninsured/underinsured motorist coverage. You must ask for this coverage or else you won’t get this coverage. When you are involved in an auto accident with a negligent driver that did not have insurance or did not have adequate insurance coverage, you will not be adequately protected. Also, keep in mind that the state minimum in Ohio to be legal and have automobile insurance coverage is only $25,000. This state minimum coverage is not adequate insurance coverage given the high cost of medical treatments and diagnostic exams like MRIs.

Medical Payments Insurance Coverage

Medical payment insurance coverage pays for medical bills of up to the amount of insurance you buy for you and those injured while riding in your car—regardless of who caused the accident. It also covers you and resident members of your family if you were struck by a car as a pedestrian or if you were a passenger in another car.

Even though you pay for this coverage, please keep in mind that under Ohio law you are responsible for paying back your insurance company for any medical bills paid by your automobile insurance company when you settle your claim with the negligent driver’s insurance company.

Mold Insurance Coverage

Mold insurance coverage, also referred to as fungi or bacteria coverage, covers you in situations where mold or mildew is found in your home. This coverage protects you in the event you need to test for or remove any mold or pay for any mold remediation. We recommend that you obtain as much coverage as possible because these mold claims are extremely costly and expensive.

Insurance Questions?

If you still have questions about essential insurance policies, do not hesitate to contact our office for assistance.

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