Auto insurance is mandatory in many states. Rather it is illegal to drive without obtaining vehicle insurance in such states. State of Ohio makes it mandatory for all the drivers to obtain motor vehicle insurance.

In the absence of vehicle insurance, driver is required to carry a proof of financial responsibility (FR). A vehicle owner cannot allow any other person to drive his/her vehicle without the proof of financial responsibility.

Aspects of Auto Insurance Laws In State Of Ohio

What Is The Meaning Of Financial Responsibility?

Every vehicle owner in Ohio is required to obtain a proof of financial responsibility throughout the period of vehicle registration. This financial responsibility proof is required to be obtained in respect of the owner’s vehicle. In case vehicle is driven by a person other than the owner, proof has to be obtained with respect to that person’s operation of the vehicle. The amount of financial responsibility has been fixed as follows:

a)    A minimum amount of $ 12,500 for meeting any bodily injury caused to or death of one individual in a single accident

b)    A minimum amount of $ 25,000 for bodily injury caused to or death of two individuals in a single accident

c)    $ 7,500 for any damage caused to the property of others in a single accident.

It is important to note that the insurance policy obtained by the owner provides coverage for the liabilities mentioned above in respect of each accident till the time insurance policy is valid. Further, the limits specified above are minimum limits and an individual can obtain an insurance policy providing more coverage.

In case the amount of damage from an accident is more than the minimum limits specified above, vehicle owner will be personally held responsible to pay for the damages not covered by the insurance policy. In such a case, personal assets (such as home, car and so on) of the vehicle owner can be used to compensate the aggrieved party.

Also Read

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How To Comply With The Requirements Of Financial Responsibility?

To meet the requirements of financial responsibility, an individual can maintain any one of the following documents:

a)    An insurance policy in respect of the vehicle owned by an individual. Generally, insurance card is issued by the insurer which can be used as a proof of financial responsibility.

b)    Vehicle owner can also obtain a $ 30,000 bond which has been issued by an authorized surety or by an insurance company.

c)    A certificate which has been authenticated by an insurance agent on a form prescribed by Ohio Bureau of Motor Vehicles.

d)    A certificate which has been issued by Bureau of Motor Vehicles. Such a certificate is issued after proper application and approval process. This certificate indicates that money or government bonds for an amount of $ 30,000 are deposited with the Ohio Treasurer.

e)    A certificate in the form of a $ 30,000 bond which has been issued by Bureau of Motor Vehicles. Such a certificate is signed by two individuals having equity of at least $ 60,000 in real estate.

f)    Self insurance certificate issued by the Bureau of Motor Vehicles. Such a certificate is issued to an individual who has a registration of more than 25 vehicles in his/her own name.