Why Is Car Insurance So Expensive In Ohio?
A mix of factors are causing Ohio car insurance to be so expensive, such as; a high number of uninsured drivers, the increasing costs of new cars, prices of repairs and replacements going up. Additionally, frequent severe weather events like storms and floods lead to more claims, further driving up costs.
Car insurance rates have been rising in recent years, but Ohio drivers have been somewhat protected from these sharp increases. Still, premiums in Ohio are expected to go up by about 5% this year. Several factors will contribute to this rise, and it’s important for Ohio drivers to understand them.
With over 20 years of experience in the insurance industry, I can provide some helpful insights into this issue. Keep reading to learn why car insurance is so expensive in Ohio.
Key Takeaways
The national average for full coverage car insurance is projected to hit $2,243 annually, or about $186 per month.
Newer cars often come with advanced technology, which makes repairs more expensive due to the higher cost of parts.
To make sure you’re getting the best rate, it’s important to shop around and compare quotes from different insurance companies.
Why Is Car Insurance So Expensive In Ohio?
A mix of factors, such as uninsured drivers, rising inflation, and the increasing costs of new cars, is expected to cause car insurance premiums to rise sharply. As the prices of repairs and replacements go up, insurance companies need to adjust rates to cover these higher expenses.
Additionally, frequent severe weather events like storms and floods lead to more claims, further driving up costs. All of these elements contribute to the anticipated rise in premiums across the country.
Unique Reasons Why Car Insurance In Ohio Is So High
Car insurance rates in Ohio have been on the rise in recent years, and several unique factors contribute to the increasing premiums. Below are some reasons:
Increasing Repair & Replacement Cost
According to the Insurance Information Institute, the cost of replacing auto parts is expected to increase by 2.7% in 2025 compared to 2024, not including labor. When the cost of parts goes up, it leads to higher repair bills, and in turn, this could cause insurance premiums to rise as well.
Since insurers must cover these higher costs, they adjust rates to maintain profitability. This trend could mean higher car insurance prices for drivers across the state.
High Population Density
Ohio’s population is growing, now reaching 12 million people, which means more people are on the road. With more drivers, there’s an increase in accidents, claims, and insurance payouts. In 2024, Ohio saw 1,068 fatal traffic accidents, marking a 26% increase over the past ten years.
This alarming trend highlights the rising number of traffic-related deaths. The Ohio State Highway Patrol has pointed out key factors contributing to this increase, such as distracted driving, speeding, and impaired driving.
Uninsured Drivers
Around 17% of drivers in Ohio are uninsured, which leads to higher car insurance costs for everyone. When uninsured drivers cause accidents, insurance companies have to cover the costs, which results in higher premiums for those who are insured.
This also creates a financial burden on the overall system, making it more expensive for responsible drivers to maintain their coverage. The lack of insurance among some drivers contributes to rising rates for everyone.
Changes to Ohio’s Insurance Laws in 2023
In 2023, Ohio made several updates to its insurance laws, which could have played a role in rising car insurance rates. These changes involved adjustments to minimum coverage requirements, updates to regulations, and changes to the claims process.
A key change was the introduction of stricter minimum coverage requirements. The state recognized the need for better protection for drivers and raised the minimum liability limits.
This new rule was designed to ensure that those involved in accidents would have enough coverage for damages and medical costs. While this change helped protect accident victims, it also led to higher premiums for policyholders.
Severe Weather
Ohio’s extreme weather, such as storms, floods, and droughts, plays a role in driving up car insurance rates. These weather events lead to more costly and unpredictable claims, so insurance companies increase premiums to help cover the expenses. As a result, drivers in Ohio may see higher insurance costs due to the added risk posed by severe weather conditions.
Factors Causing Your Car Insurance To Be So High
There are many factors that can influence how much you pay for car insurance. Here are some of the most common ones that can affect your premium.
Credit Score
Drivers with low or no credit scores usually pay higher insurance premiums. Insurance companies think that these drivers are more likely to make claims in the future compared to those with good credit.
Insurance Company
Different car insurance companies use their own methods for calculating rates, which is why prices can vary between providers. Some companies focus on offering competitive rates to attract new customers, while others may provide more comprehensive services or special discounts.
It’s important to shop around and compare quotes from different insurers to find the best price and coverage for your needs.
Coverage Level
The level of coverage you select directly impacts your car insurance premium. Opting for higher limits on liability coverage, adding full coverage (which includes comprehensive and collision coverage), or adding optional coverage types such as rental reimbursement or roadside assistance, will generally increase your premium.
Claims History
Your claims history is a significant factor in determining your car insurance rate. If you have a history of making frequent claims, especially for accidents or traffic violations, your premium is likely to be higher.
Insurance companies view drivers with a history of claims as higher risk, as they are more likely to file future claims. On the other hand, if you have a clean claims history with no accidents or claims over several years, you may be eligible for discounts or lower rates.
Age
For an 18-year-old, full coverage car insurance can be up to three times more expensive than for a 30-year-old. This is mainly because young drivers have less experience on the road and are often more prone to risky driving behaviors.
As a result, they are more likely to be involved in accidents that lead to costly claims for insurance companies. In general, young men tend to have the highest car insurance rates.
Note: To improve your rates, the key is to pay your bills, like credit cards, on time. This will help boost your credit score, and over time, you might see a reduction in your insurance costs.
How To Get Cheaper Car Insurance
In Ohio, you can lower your car insurance costs by using various discounts. Here are some common discounts that you might be eligible for:
Defensive driving
Complete a defensive driving course and receive a discount of 10% to 15%.
Bundling
Save 5% to 25% by combining multiple insurance policies with the same company.
Good student
Full-time students with a GPA of 3.0 or higher can get a discount ranging from 5% to 25%.
Occupation or professional organization
Members of professional groups like the Freelancers Union or alumni associations may qualify for discounts of 2% to 10%.
Vehicle anti-theft
Install an anti-theft device, such as a GPS tracker, and earn a 5% to 15% discount.
FAQs
What should I do if my car insurance is too high?
If your car insurance is too high, consider shopping around and comparing quotes from different insurance companies. You can also review your coverage levels and see if you can lower them without compromising essential protection.
Increasing your deductible, qualifying for discounts (such as for safe driving or bundling policies), and improving your credit score over time can also help reduce your premiums.
Why did my car insurance rate go up?
There are several reasons your car insurance rate may have increased in Ohio. It could be due to higher repair costs, more accidents or claims in your area, or an increase in theft rates. Changes in Ohio’s insurance laws or adjustments in minimum coverage requirements can also play a role.
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