When shopping for car insurance, it’s easy to look at the cheapest price and think, “That’ll do.” After all, state minimum car insurance satisfies the law and gets you on the road. But here’s the hard truth: state minimum coverage is often a financial trap. One serious accident can wipe out any money you thought you were saving.
As an insurance professional, we’ve seen firsthand what happens when drivers choose the bare minimum—and it’s not pretty. Here are the top reasons you should think twice before settling for state minimum coverage:
1. Minimum Limits = Maximum Risk
Ohio’s state minimum requirements were first established in 1969 (yikes), when medical bills and repair costs were much lower. At that time, the limits were $12,500 bodily injury per person/$25,000 bodily injury per accident and $7,500 for property damage.
They were increased only slightly in 2013 to $25,000 bodily injury per person/$50,000 bodily injury per accident and $25,000 property damage.
Today, an ambulance ride alone can run over $1,000—and that’s before you even get to the hospital. Most state minimum liability limits are nowhere near enough to cover the actual costs of an accident.
If you cause an accident that results in $75,000 in medical bills and your policy only covers $25,000, guess who’s responsible for the other $50,000? You.
2. Your Savings and Future Earnings Are on the Line
If your coverage runs out, the injured party can sue you personally. That means your savings, your home, even your future wages could be at risk (this is called wage garnishment and is legal in Ohio). A slightly higher monthly premium is a small price to pay compared to the long-term financial damage a lawsuit can cause.
3. No Protection for Your Own Car
State minimum coverage doesn’t include collision or comprehensive protection, just bodily injury and property damage to others. That means if your car is totaled in an accident you caused, or it’s stolen, vandalized, or damaged in a storm, you’re left paying the repair or replacement bill yourself. Could you afford to replace your car tomorrow if something happened to it?
4. Medical Costs Add Up Fast
Many state minimum policies provide little or no medical coverage for you and your passengers. Even minor injuries can leave you with big bills. Having higher coverage limits and optional medical protection means you won’t be forced to choose between your health and your wallet.
5. Peace of Mind is Worth It
When you know you’re properly insured, you can focus on the road—not on “what ifs.” Higher coverage limits and added protections (like uninsured/underinsured motorist coverage) let you drive with confidence, knowing you and your family are protected.
Final Thought: Don’t Gamble With Your Financial Future
Yes, state minimum car insurance meets the legal requirement. But it doesn’t truly protect you. One serious accident can cost far more than you think—and that financial burden could follow you for years.
The good news? Protecting yourself doesn’t have to break the bank. By increasing your coverage limits and adding the right protections, you’ll gain peace of mind and safeguard your future.