by 
The Curious Bag
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If you have been looking for ways to save on car insurance costs, you may have heard of bonds. Understanding how bonds work will help you decide if this is right for you.
Definition
A bond is a pledge made by an insurance company to pay for the injuries and damages you cause to others in an auto accident, up to the bond limits.
Purpose
A bond provides limited financial protection for other drivers and their passengers if you cause a car accident. It also allows you to legally operate a vehicle on public roads.
Limits
A bond only provides liability coverage up to the minimum limits required by the state. For example, in Ohio, as of December 2009, a bond only pays up to $32,500.
Protection for You
A bond does not offer any protection for you. It does not cover your injuries or damage to your car.
Advantages
The main advantage of a bond is that it is cheaper than car insurance. This is a viable option for people who want to drive legally but can't afford car insurance.
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