Ohio Auto Insurance Laws, Minimums, Requirements

What mandatory auto insurance laws exist in the state of Ohio?

- In the state of Ohio, all drivers must carry liability insurance in the minimum amounts of $12,500 bodily injury per person, $25,000 bodily injury for two or more people, and 7,500 for property damage or they must opt for an alternative form of insurance to show financial responsibility (FR).
- In the state of Ohio, legal alternatives to auto liability insurance include a surety bond of $30,000 issued by any authorized surety company, a BMV bond secured by real estate equity of at least $60,000, or a BMV certificate for money or government bonds in the amount of $30,000 on deposit with the State Treasurer.
- When register your vehicle or apply for a license or permit in the state of Ohio, you will be required to sign a financial responsibility form stating that you won’t operate a motor vehicle without adequate coverage.
- The state of Ohio requires proof of financial responsibility for anyone who uses your vehicle. This means that you or anyone else that operates your vehicle must carry proof of financial responsibility coverage at all times.
- If you fail to provide proof of insurance coverage or you get caught driving without insurance, you will lose your license for 90 days if it is your first offense. On your second offense, you will lose your license for a year, and if you offend more than two times, you will lose your license plates and registration. In addition, you will have to pay reinstatement fees ranging from $75-$500 and you will be required to purchase a form of high-risk auto insurance called "special FR coverage" for anywhere from three to five years. Impoundment of your vehicle or your vehicle may be sold.

What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts):

If you buy automobile insurance in Ohio, your policy must include minimum liability coverage of:

$12,500 bodily injury per person,
$25,000 bodily injury for two or more people,
and
7,500 for property damage

What are the Rental Car Insurance Requirements?

In the state of Ohio it is illegal to operate any motor vehicle without insurance, this includes rental cars. Rental cars must carry the minimum liability coverages required by Louisiana law. It is important to keep in mind that most Ohio auto insurance policies include car rentals. Most credit cards cover car rentals as well, so be sure to check your auto insurance policy and/or check with your credit card issuer. If you find that your credit card and/or auto insurance policy do not cover rental cars, you must purchase car rental insurance from the car rental company. It typically costs an extra $7-$14 a day.

What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?

Uninsured/Underinsured Motorist Coverage is not required in the state of Ohio. Because Ohio is a Tort state, most insurance companies recommend that driver’s consider carrying higher coverages than the state minimums. 

What are the rules pertaining to the exclusion from coverage of a driver living in household?

In the state of Ohio, auto insurance companies can write policies that exclude household members. These exclusions are listed in the exclusions section, which also includes a list of all possible circumstances that would free the insurance company from the responsibility of paying a claim. It is important to examine your auto insurance policy carefully before signing on the dotted line.

What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?

If your insurance lapses, this means that any vehicle that you drive is not insured. If you get caught driving without current insurance, you will lose your license for 90 days if it is your first offense. On your second offense, you will lose your license for a year, and if you offend more than two times, you will lose your license plates and registration. In addition, you will have to pay reinstatement fees ranging from $75-$500 and you will be required to purchase a form of high-risk auto insurance called "special FR coverage" for anywhere from three to five years. Impoundment of your vehicle or your vehicle may be sold.

What are the rules and guidelines auto insurance companies must follow regarding the use of Personal Credit History in selecting applicants and setting rates?

In the state of Ohio, it is legal for insurers to use Personal Credit History to help determine rates and which products they will offer. Your Personal Credit History may also be used to determine whether you will be making monthly or quarterly payments or if you will be required to pay the entire premium upfront. Personal Credit History is also used to create an “insurance risk score.” This score also helps determine your auto insurance rates. In order to enjoy a lower insurance premium, pay your bills on time in an effort to improve your score. This will also help improve your credit history so that in the long run, you can save money on your car insurance premium. That said, Personal Credit History is not the only assessment tool Ohio auto insurance companies may use. They also consider age, gender, where you live, car make and model, how much you drive, and driving record.

Is the state a No Fault or Tort state? What does either mean to the policy owner?

The state of Ohio follows a Tort System. What this means is, if you are involved in an accident, someone must be found to be the cause or fault of the accident. The person deemed at fault is responsible for all damages. Damages are usually handled through the at-fault person's insurance company. Because Ohio is a Tort state, most insurance companies recommend that driver’s consider carrying higher coverages than the state minimums. 

What is the average auto insurance premium in this state? As of what year?

As of 2006, Ohio resident’s average insurance premium was approximately $654, the 39th most expensive in the nation. This was down 2.3% from the previous year. The national average was $817.

Sources

Insurance Information Institute

Ohio Department of Insurance