What is Financial Responsibility?
In Ohio, it is illegal to drive any motor vehicle
without insurance or other proof of financial responsibility
(FR). It is also illegal for any motor vehicle owner to allow
anyone else to drive the owner's vehicle without FR proof.
To comply with the FR requirements, individuals must maintain
insurance or get a bond. Both types of coverage are described
below.
If I obtain insurance, what is required?
Ohio law requires the following for insurance coverage:
-
If a person purchases automobile insurance,
the state requires the person to purchase Bodily Injury Liability
Coverage as well as Property Damage Liability Coverage.
-
A motor vehicle liability insurance policy.
Insurance cards are issued by an insurer to the policyholder
for each motor vehicle insured under a motor vehicle liability
insurance policy;
-
A certificate of proof of financial responsibility
on a form prescribed by the Ohio Bureau of Motor Vehicles
(BMV).
If I purchase auto insurance to demonstrate Financial
Responsibility, what are the minimum coverage requirements
in Ohio?
In Ohio the required minimum limits for Bodily Injury
Liability Coverage is $12,500 per person injured in any one accident
and $25,000 for all persons injured in any one accident.
The required minimum limits for Property Damage Liability Coverage
is $7,500 for injury to or destruction of property of others
in any one accident.
Why should I get more coverage than the minimum?
The value of your assets (what you may have to lose
in the event you cause an accident) may help you determine the
amount of coverage you should carry. Having additional coverage
could protect you and your assets in the event of a serious accident.
If you do not have adequate coverage, the law allows the victim
to take any assets that you may have in order to cover the costs
of any damages that occur.
What could happen to me if I get in an accident and
only have minimum coverage?
You would be held legally responsible to pay for any damages
that are not covered by your insurance, including medical costs,
costs to repair any property damage and legal costs for any court
proceedings that may take place because of the accident. To pay
for the damages, your home, car and other assets could be taken
away from you. Your present and future wages could be garnished.
If your child was driving a car that was underinsured and was
in an accident, they too would be held responsible for any damages
and could face significant debt. You and your family could end
up paying for one accident for the rest of your life!
I have very limited income and can only afford minimum
coverage. What can I do?
Ohio has the 13th lowest auto insurance rates in the
country. Call around to several different companies and get quotes
from them. More than likely you will be able to find a company
that can provide more than the minimum coverage for your budget
If I want to get a bond or post collateral instead of
purchasing insurance, what is required?
Ohio law allows for the following alternatives to automobile
insurance:
- A certificate issued by the BMV, after proper application
and approval, indicating that money or government bonds in
the amount of $30,000 is on deposit with the Ohio Treasurer
Richard Cordray;
- A certificate of bond issued by the BMV, after proper application
and approval, in the amount of $30,000 signed by two (2) individuals
who own real estate having equity of at least $60,000;
- A certificate of self-insurance issued by the BMV, after
proper application and approval, to those with more than 25
motor vehicles registered in their name or a company's name;
- A $30,000 bond issued by an authorized surety or insurance
company.
Questions or Concerns?
The Ohio Department of Insurance regulates agents
and companies that are licensed to sell insurance in our state.
The Department’s consumer Services representatives can
answer your insurance question and investigate your complaints
about an insurance company or agent. Call 1-800-686-1526.
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