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Ohio State Car Insurance
We all are aware of the fact that it is compulsory in Ohio for all car owners to buy a car insurance cover for their cars. What many of us are not aware of are the consequences of not having one. The consequences can be divided in two ways.
1) Legal Consequences
Not having a valid car insurance coverage subject to the terms and conditions of the state is illegal and may result in legal actions by the law enforcers. They have the right to impose heavy fines on the violator or even suspend his driving license for a period of 90 days in case he is found to be irresponsible more than once. There is also a possibility that the car gets impounded. Vehicle can be taken out from the impound lot once the owner buys a cover and shows the same to the authorities.
2) Financial Consequences
If the owner meets an accident and does not have a car insurance cover, the financial consequences would be many. To start with, he would have to pay for all the damages from his pocket which otherwise would have been taken care of by the insurance agency. Further, he would also find himself facing the regulators and paying fines for driving illegally.
Beware that it is not easy to cheat the regulators. Showroom owners report all sold cars to them along with their insurance status. Insurance agencies do the same and catching people without a cover is very easy for them. As such, it is better to apply for a cover and make sure that the car is taken out of the garage only with a copy of the insurance cover safely in place.
The idea is not to have a cover, but the ability to pay for the damages in case of an accident so that the victim does not suffer more. In analogy with this, a car owner may choose not to buy a cover if he can prove that he has the required amount of finances to pay from his pocket in an accident situation. He may buy a $30,000 bond from an insurance agency or get self insured; however, both would be required to get certified by the Bureau of Motor Vehicles in Ohio.
Both forms of insurance have their pluses and minuses. While getting a cover from an insurance company would mean not having to pay large amounts from the pocket, self insuring would be better for drivers who are responsible enough not to indulge in an accident.
Understanding this concept is fairly simple - Car Insurance comes with a number of clauses and the premium amounts may differ from one individual to another. As such, a new driver would end up paying more for the same cover compared to someone who has an experience behind his back. With bonds, there is no such clause and everyone is deemed equal i.e. all car owners whether young or old, experienced or inexperienced would end up making the same deposits.