The Pros and Cons of Ohio’s No-Fault Auto Insurance System

At Schneider Insurance Agency, we believe there are both drawbacks and advantages to the no-fault insurance system that Gahanna, OH offers. For example, one pro is just how efficient the system is at processing insurance claims. Since you are part of a no-fault system, it won’t be necessary to wait for the outcome of lengthy investigations conducted by the local police. Every party simply pays for his or her own property damage and medical expenses. Claims are settled quickly, and compensation is received in a prompt manner.

Another advantage is that there are far fewer lawsuits clogging up the court systems that arise from auto accidents. Regardless of fault, drivers are reimbursed by their own insurance companies, so there really is no need to engage in legal battles to prove liability. And, because litigation costs are much lower in the Gahanna, OH area, many vehicle owners pay lower premiums than those in neighboring states. While lawsuits do still occur, they are usually only brought forth in matters of severe injuries.

That all said, there are some disadvantages to this system. For one, it can actually have the opposite effect and result in higher premiums for some. While the process was developed with the idea of streamlining everything for everyone involved, the costs of covering your own damages each time that you get into a traffic accident can get costly fast. That means some companies may charge all of their insured higher premiums to make up the difference.

However, perhaps the biggest setback associated with the no-fault system is the fact that it discourages responsible driving. Ohio law states that innocent victims must share the financial burdens of auto accidents with those who are culpable. Therefore, there really is no reward for being a careful and reliable driver.

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If you are confused or have further questions about this tricky system, don’t hesitate to call us at Schneider Insurance Agency in Gahanna, OH. We would be happy to take your questions and provide you with the reassuring answers that you need.