Ohio Insurance Law: Does It Cover Auto Liability?

Ohio's insurance laws are complex and vary depending on the type of insurance in question. In terms of automobile liability insurance, Ohio is a fault state, meaning the person at fault for an accident is responsible for compensating anyone who suffered harm. All drivers in Ohio are required by law to carry vehicle insurance, and insurance policies must include certain minimum amounts of bodily injury liability and property damage liability coverage. However, the specific application of these laws can vary depending on the nature and extent of the damage, as well as the policy's specific language, exclusions, and limitations. Understanding these factors is crucial for policyholders to ensure they have adequate coverage and know their rights in the event of an accident.

Ohio requires drivers to carry auto insurance

Ohio requires all drivers to carry vehicle insurance. The state requires drivers to show financial responsibility for any potential car accident. This can be done by posting collateral or buying liability car insurance.

While Ohio does not require drivers to carry car insurance on their vehicles, if you choose to comply with the state's financial responsibility rules by purchasing insurance, you must carry certain minimum amounts of coverage. These minimum requirements for coverage are:

• $25,000 for the injury or death of one person (a passenger, another driver, pedestrian, etc.) in an accident you cause
• $50,000 total for all injuries or deaths resulting from a single accident you cause
• $25,000 for any property damage arising out of a single accident you cause

These are just the minimum amounts required under Ohio law. It is generally recommended to carry more protection in Ohio, as the minimum coverage requirements can be easily exhausted, especially after a serious accident resulting in significant injuries and vehicle damage. If you are deemed liable for an accident and other people's damages exceed the limits of your insurance policy, you will be responsible for paying the difference from your own assets.

Liability coverage will also kick in if any family member is driving your vehicle or if you have given someone else permission to use it. It will also likely cover you if you get into an accident in a rental car.

It is important to note that liability coverage does not apply to your own injuries or vehicle damage after an accident. You will need additional coverage for that, such as personal injury protection (PIP) or MedPay coverage for medical bills, and collision coverage for repairs or replacement of your damaged vehicle.

While most drivers in Ohio choose to purchase liability car insurance, there are alternative ways to comply with the state's financial responsibility rules. These alternatives include:

• Getting a Bureau of Motor Vehicles certificate showing that $30,000 (in cash or government bonds) is on deposit with the state treasurer
• Obtaining a $30,000 certificate of bond issued by the BMV, signed by two individuals who own real estate with equity of at least $60,000
• Getting a $30,000 bond from an authorized surety or insurance company
• For owners of more than 25 vehicles, obtaining a certificate of self-insurance issued by the BMV

In Ohio, it is important to always carry proof of insurance with you when driving. This can be in the form of a physical insurance card provided by your insurance company or a digital version displayed on your phone or other devices. If you are caught driving without insurance or other accepted proof of financial responsibility, you may face penalties such as suspension of your driver's license, impoundment of your vehicle or license plates, and reinstatement fees.

Minimum insurance coverage in Ohio

Ohio requires all drivers to carry vehicle insurance. The state mandates that every auto insurance policy must include certain minimum amounts of bodily injury liability and property damage liability coverage.

The minimum insurance coverage in Ohio is:

• $25,000 for bodily injury liability per person
• $50,000 for bodily injury liability per accident
• $25,000 for property damage liability per accident

These requirements are often written as 25/50/25.

In Ohio, drivers aren't required to carry collision or comprehensive insurance. However, if you finance or lease a vehicle, lenders typically require these coverages to protect their investment. Collision coverage pays to repair vehicle damage after a covered accident, including collisions with stationary objects. Comprehensive insurance covers non-accident situations like falling objects, fire, or theft.

While not mandatory, other types of insurance Ohio drivers may want to consider include:

• Gap insurance: This may be beneficial for drivers who lease or finance a new vehicle. If your car is totalled after a covered accident, gap insurance will pay out the difference between the car's value and the balance remaining on your loan.
• Roadside assistance: This popular add-on provides basic car repairs, towing, extrication, fuel delivery, lockout services, battery replacement, and more.
• Medical payments (MedPay): This can help cover medical costs for you or a household member injured in a car accident, regardless of who was at fault.

Ohio is considered a "fault" or "tort" state, meaning the driver deemed at fault for an accident is responsible for compensating anyone who suffered harm as a result. The minimum coverage requirements can easily be exhausted, especially after a serious accident resulting in significant injuries and vehicle damage. If you are liable for an accident and the damages exceed the limits of your insurance policy, you will be financially responsible for the difference.

Proof of insurance must be shown at traffic stops, accident scenes, and vehicle inspections

In Ohio, proof of insurance must be shown at traffic stops, accident scenes, and vehicle inspections. This is a requirement under the state's financial responsibility laws, which apply to owners of Ohio-registered vehicles, motorists leasing vehicles from licensed dealers, and those applying for any type of driver's license. The purpose of these laws is to ensure that motorists can compensate victims in the event of a crash.

Motorists can meet the financial responsibility requirements in several ways, including purchasing liability car insurance or posting collateral. If you choose to buy liability car insurance, as most Ohio drivers do, you must keep proof of insurance in your vehicle and be able to present it to law enforcement upon request. Failure to provide proof of insurance can result in various penalties, including suspension of your driver's license and impoundment of your vehicle and/or license plates.

The minimum requirements for liability insurance coverage in Ohio are:

• $25,000 for the injury or death of one person in an accident you cause.
• $50,000 total for all injuries or deaths resulting from a single accident you cause.
• $25,000 for any property damage arising out of a single accident you cause.

It is important to note that these are the minimum coverage requirements, and it is often advisable to carry more insurance protection in Ohio. The minimum coverage may not be sufficient to cover all your assets if you are at fault in a serious accident. In such cases, you may be personally liable for any damages that exceed your insurance coverage limits.

In addition to maintaining the required minimum coverage, drivers in Ohio are also encouraged to consider adding other types of insurance to their policy, such as collision insurance, comprehensive insurance, gap insurance, or roadside assistance. These additional coverages can provide financial protection in various situations, such as accidents with uninsured or underinsured motorists.

Consequences of driving without insurance in Ohio

Driving without insurance in Ohio can result in serious consequences, including fines, loss of driving privileges, and even confiscation of your vehicle. Here are the potential penalties you may face:

First Offense

If caught driving without insurance, you will likely lose your driver's license, license plates, and vehicle registration until you obtain coverage. You will also be required to pay a reinstatement fee, typically $40 for a first offense, and a $50 fee if you fail to surrender your license, plates, or registration.

Second Offense

For a second offense, you face a fine of up to $1,000 and a license suspension for up to one year. The reinstatement fee increases to $300. If you violate the license suspension, the state may confiscate your car and license plates for 60 days.

Third and Subsequent Offenses

After three or more offenses, the penalties become even more severe. You must surrender your license for two years and pay a $600 reinstatement fee. The state can also seize and sell your vehicle, and you may be barred from registering another vehicle for up to five years.

SR-22 Insurance Requirement

Motorists caught driving without insurance are considered high-risk and are required to purchase SR-22 insurance. This type of insurance is designed for high-risk drivers and requires the insurance company to notify the state if the policy is canceled or lapses. The SR-22 must be maintained for three to five years.

Accident While Uninsured

If you are involved in an accident while driving without insurance, the penalties and financial consequences can be significant. As Ohio is a tort or at-fault state, you will be held financially responsible for any bodily injuries and property damage caused. If you are unable to pay out of pocket, the other party can sue you, which could put your assets at risk.

Additional auto insurance coverage options in Ohio

In Ohio, drivers can opt for add-on coverages to their auto insurance policies. Here are some additional auto insurance coverage options in Ohio:

• Collision insurance — This insurance pays to repair vehicle damage after a covered accident, including collisions with stationary objects.
• Comprehensive insurance — Comprehensive insurance covers the cost of repairing vehicle damage stemming from non-accident situations, such as falling objects, fire, or theft.
• Gap insurance — Gap insurance is beneficial for drivers who lease or finance a new vehicle. If your car is totalled after a covered accident, gap insurance will pay out the difference between the car's value and the balance remaining on your loan.
• Roadside assistance — Roadside assistance is an optional coverage that provides basic car repairs, towing, extrication, fuel delivery, lockout services, battery replacement, and more. This coverage is available from most insurance companies.
• Medical payments (MedPay) — MedPay can help cover the cost of medical treatment for you or a household member if you're injured in a car accident, regardless of who was at fault. This coverage may supplement your health insurance.
• Uninsured/underinsured motorist coverage — This coverage protects you if you're in an accident caused by a driver with state minimum coverage or no insurance coverage. It can help pay for damages like medical bills, lost income, and pain and suffering.

Frequently asked questions