Auto Insurance Rates (Hamilton, Kent, Campbell: sales, rental, homeowners insurance)

[WILWRadio]

I just ran some quotes for my car in Covington and I can't believe how high the auto insurance rates are. Ran a couple for a random address on the Ohio side and it was considerably lower.

Anyone know why the rates are so much different in each state. I would think that since both sides of the river are part of the same metro area that they'd be fairly close in price.

[hensleya1]

WILWRadio--

It has to do with state law. Kentucky is a "no fault" state which means that since it's more difficult for insurers to determine who to charge more for insurance (or not insure at all) since not any one particular driver is cited when involved in an accident, so the insurance companies just charge more across the board.

[unusualfire]

More difficult? The police should have a police report. And that should show who's at fault.

[WILWRadio]

Yikes. This is going to be a real problem. My insurance rates in KY are almost identical and in some cases exceed my monthly car payment. I may be a short term resident there if I cannot resolve the issue. I could ditch the car and use the bus or a scooter but that could present an issue if I cannot find work close to my home. Ugh.

[t45209]

The thing that I have never gotten about Kentucky is the personal property tax you pay on cars. Annual registration in Ohio might run you $50, but my understanding is that people in Kentucky may have to pay several hundred dollars in tax based on the value of the car.

One of these days, I would like to see a comprehensive comparison of what it costs to live in Hamilton County, Ohio, vs, say Kenton or Campbell County, Kentucky...income taxes, property taxes, sales taxes, licenses, insurance, everything. No resource I have ever seen really digs that deep.

[hensleya1]

Originally Posted by t45209

The thing that I have never gotten about Kentucky is the personal property tax you pay on cars. Annual registration in Ohio might run you $50, but my understanding is that people in Kentucky may have to pay several hundred dollars in tax based on the value of the car.

One of these days, I would like to see a comprehensive comparison of what it costs to live in Hamilton County, Ohio, vs, say Kenton or Campbell County, Kentucky...income taxes, property taxes, sales taxes, licenses, insurance, everything. No resource I have ever seen really digs that deep.

t45209--

Kentucky charges something asinine for your yearly tags based on the value of the car, or as I used to say, it encouraged Kentuckians to drive pieces of junk. Tags on a new car can easily run you $750 per year, but a beater costs more like $40 a year to register.

On the other hand, property tax assessments are a fraction of those on the Ohio side.

http://www.kentonpva.com/pdf/2012RealEstateTxRts.pdf

Depending on what school district, you'll pay ~0.5-1.5% of the assessed value of the house per year in property taxes in Kenton County. You'll pay, as a percentage of the property value, anything between 3 and 10 times as much in Hamilton County - a property tax bill of $1,000 on the Kentucky side could easily be $3,000 on the Ohio side.

All the states find ways to get their money, one way or another.

[hensleya1]

Originally Posted by unusualfire

More difficult? The police should have a police report. And that should show who's at fault.

unusualfire--

IIRC in Kentucky the police officer just issues a citation to both parties.

[kjbrill]

After attempting to read up more concerning Kentucky's no fault auto insurance status, I am more confused than ever.

1st of all I understand the no fault applies only to personal liability, bodily injury, loss of earning cability, etc. Physical property damage is still covered by the tort common law rules of negligence. So I don't know how property damage liability could be assigned without a police report giving some indication of individual cause. Or do you have to go to court and let a judge decide?

Another thing I read is Kentucky is a choice state. That is, when you sign up for a car insurance policy you can chose either a full tort (responsibility for damages from individual cause under common law) or limited tort (no fault) type of policy. One selected it cannot be changed unless policy is cancelled and rewritten. In KY the default is no fault unless you request otherwise. Now this makes no sense to me at all. For example, let's say I chose the full tort option (personal injury damages are the liability of the cause of the accident) while the other party choses no fault which says his insurance company is liable only for the personal injury damages to himself and anyone else in his car, not to another driver or owner. So who is going to pay for the personal injury damages in my car if he is at fault? Is the so called no fault insurance going to have to pay both? I just could not make any sense out of this at all.

I know in Ohio things are not that complicated. Ohio law requires you obtain a certain amount of personal liability insurance in order to drive. But that is to protect the other guy. And that personal liability is both property and bodily injury though it may not go very far for either. Any passengers riding with you may be SOL.

I have two older vehicles on which I have cancelled the collision insurance. This is basically coverage on physical damages to your vechicle if you go out and get in a car accident where you are the one at fault. Beyond a point in vehicle value it becomes rediculous to continue it. An older vehicle costs no less to repair than a newer one. But the insurance company always has a clause in there where they can just give you the fair maket vale of the vehicle which can be well below the repair. On top of that they get the salvage value of the vehicle so you doubly lose. My attitude is beyond a certain point I assume the risk, if I am the stupe to cause the accident I also assume the loss.

In Ohio I have our vehicle and homeowners insurance with the same company. Many years ago I moved from Metropolitan to Nationwide. Not about to tell anyone Nationwide is the cheapest, they are not. But they respond quickly to any potential claim.

In addition, I have a blanket liability policy with Nationwide. Not to say again it is cheap. It is a basic $1mil policy and covers such items as uninsured motorist, outside our auto policy, driving in such as a no fault state, which ours is not.

[WILWRadio]

^^^KJBrill. I believe your interpretation of this law is accurate. I have a friend with a legal background that came to a similar conclusion. This is going to be a major problem for me. Over the years I've had about 30 accidents of varying degrees from fender benders to having two cars totaled in KC last year. Get this. Out of these 30 accidents only two were my fault and both of those were fender benders and occurred when I was a teenager.

At this point, given that my car seems to be a magnet for the worst elements that drive on our roads, it is likely my stay in Covington will be very short and I will be shopping for a house on the Ohio side before long. I will probably keep the existing house and turn it into a rental though. Essentially from what I gather it is very easy to end up in court in KY even over a fender bender because of this law. I cannot afford to have to tie up my life in this manner when I am not at fault for an accident or if the person that hit me won't be found liable for his being at fault in an accident and then I get dragged into court over the smallest fender bender. Given the number of accidents I've had this could end up being a common occurrence for me if I live in KY or even drive there to any great degree.

The real shocking thing about this is that I have a clean driving record. Watching my rates balloon up to the size of my car payment every month is inconceivable.

[unusualfire]

30???? Talk about high risk. lol