Auto Insurance Requirements in Ohio
To drive in Ohio, you are required to carry auto insurance equal to or more than the amount stated in Ohio's financial responsibility law and be responsible for any damage you cause in a car accident. In fact, when you register or renew your vehicle registration and driver's license, you will be asked to sign a sworn statement indicating you will never drive without valid insurance in the Buckeye State.
Ohio required car insurance coverage
Required minimums | |
|---|---|
| $25,000 per person/$50,000 per accident | |
| $25,000 per accident |
There are several occasions when you will be asked to present proof of insurance — usually in the form of your insurance ID card or the declaration page of your policy (both paper and electronic are acceptable). The most common occasions are when you get pulled over on the road, are involved in an accident that injured someone (including yourself) or cause more than $400 of property damage.
Ohio car insurance minimum requirements
A minimum Ohio auto insurance policy must include bodily injury and property damage coverage, which are collectively referred to as liability insurance. Liability insurance covers the expenses you will be responsible for if you cause an accident and are found to be at fault. All licensed car insurance companies in Ohio must provide these two coverages, beginning at the minimum limits, which are:
Bodily injury (BI): $25,000/person, $50,000/accident
Requirement
- Up to $25,000 per injured person
- Up to $50,000 per accident for two or more injured persons, combined
Covers
- Your personal assets
- Legal fees in the event the other party sues you, up to the stated limit
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Does not cover
- Your own medical bills
Property damage (PD): $25,000/accident
Requirement
- Up to $25,000 per accident
- No more than $50,000 for each accident
Covers
- Everything from the other driver's car that's damaged
- Other property that is damaged in the accident (buildings, fences, etc.)
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Cheapest companies in Ohio for minimum liability
Optional car insurance coverage in Ohio
You will probably hear from your agent and government officials that the state-required minimum insurance is not enough to protect you and all of your assets. A more complete policy (agents may refer to it as "full coverage") will include not only liability coverage, but also coverages for your injuries and your own vehicle's damage. Here are some commonly included types of coverage that you should be able to get from most OH insurers:
Physical damage
When you need to pay for repairs to your car, having one of the two physical damage coverages can really help lighten the burden. Regardless of fault, collision coverage protects you for any damage that results from running into someone or something. Other kinds of non-collision incidents will usually fall under comprehensive coverage.
Note that with either of the physical damage types, you will need to select a deductible amount, which you would have to pay on your own before insurance would take effect. A deductible can be anywhere from $50 to $2,000, and the amount you choose will affect the cost of your premiums.
Uninsured/underinsured motorist (UM/UIM)
In the event that an uninsured or underinsured motorist is to blame for your accident, uninsured/underinsured motorist (UM/UIM) protection kicks in. The financial responsibility law was created to combat this situation, but there are still a number of uninsured drivers on the road. Since an uninsured or underinsured driver (someone who has lower BI coverage limits than yours) most likely lacks the ability to pay for your bodily injuries and car's damage, UM/UIM allows you to file claims with your own insurer. Depending on the insurer, UM/UIM may consist of several variants of bodily injury and property damage that independently kick in under different situations. However, note that the UM/UIM limits you choose may never be higher than the BI limits on the same policy.
Medical payments (MED)
Medical payments (MED) provides for medical expenses that you incur from an accident, up to the limits you choose to purchase. Because it kicks in regardless of fault, it is also known as a first-party benefit. Depending on the insurer, the coverage limit can be anywhere from $1,000 to $10,000. While many people may find this coverage and their health insurance redundant, know that it also covers funeral expenses in the event that the insured driver, or a relative they live with, dies as a result of the accident.
Alternative proof of financial responsibility
Although the most recommended (and usually the easiest) way to satisfy your financial responsibility is with an insurance policy, there are several alternatives. When you complete the requirements for any of these options to the Ohio BMV's satisfaction, the department will issue you a certificate of financial responsibility. This will be your proof whenever you are asked to present or submit one. The alternatives are:
Cash/bond deposit: When you deposit $30,000 in cash, government bonds or a cashier's check with the treasurer of the state, the BMV will issue you a certificate. This deposit will pay for any claim or judgment against you, as an insurer would if you had a minimum liability auto insurance policy. If you are depositing a cashier's check, make the check payable to "Treasurer, State of Ohio".
Real estate bond: You can file a real estate bond in the amount of $30,000 to guarantee your ability to pay. You just need to get it signed by two other individuals who own real estate in Ohio and have equity totaling at least $60,000. Note that this bond is only acceptable when it has been approved by a judge and recorded by a court clerk.
Surety bond: Another form of bond guarantee, a surety bond issued by a licensed surety company can also be acceptable evidence of financial responsibility. The surety company acts as your guarantor, who will take over the payments in the event of any judgment against you and then later collect the payments from you.
Self-insurance: If you own or lease 26 or more cars in your name, you may file an application to become a self-insurer with the BMV. When the department receives sufficient evidence that you have the ability to pay potential claims or judgments against you, as an insurance company would under a car insurance policy, it will issue you a certificate of self-insurance. Specifically, here are the requirements you need to apply:
- You own or lease 26 or more cars, all under your name.
- You can show proof of at least $100,000 in net worth with an income statement and demonstrate enough reserves to pay judgments against you for your cars.
- You have no record of bankruptcy or questionable financial standing. Any unpaid previous judgments against you will also prevent you from getting the BMV's approval.