An Overview of Ohio Car Insurance Requirements
Different states set varying minimum coverage requirements to ensure drivers can cover damages and injuries after a car accident. If you’re at fault, your liability insurance covers the other parties’ injuries and damages up to your policy limits. In Ohio, you must have an insurance policy before you can register your vehicle and maintain it throughout your car’s ownership.
Without insurance, you’d face paying tens of thousands in damages, making this law a protective measure. Ohioans can comply with this requirement through insurance or a bond, with insurance being the more common option. Ohio offers a range of insurers, so it’s essential to consider a few things when shopping for car insurance.
Minimum Insurance Coverage Requirements
Ohio requires all drivers to purchase two types of liability insurance coverage: bodily injury liability and property damage liability. If you cause an accident that injures someone, your bodily injury liability coverage pays for their medical bills and legal defense costs if you’re sued.
Insurance cards are issued by insurers to policyholders for each vehicle insured under a motor vehicle liability insurance policy. Proof of financial responsibility must be presented using a form prescribed by the Ohio Bureau of Motor Vehicles (BMV).
Cost of Auto Insurance in Ohio
The law requires in Ohio requires:
- For bodily injury liability, a minimum of $25,000 per person and $50,000 per accident.
- $25,000 for property damage liability, which covers damages to others’ property, including vehicles, fences, and structures.
Liability-only policies are the cheapest car insurance options in Ohio, averaging $73 per month, according to Insurify data. Full-coverage policies are more expensive but offer broader protection. The average cost for a full-coverage car insurance policy in Ohio is $155 per month.
Optional Coverages
State minimums may not fully cover financial damages after an accident. If you cause an accident, the other driver’s medical and repair bills could exceed these limits, requiring you to pay the difference out of pocket. Additional coverage options can protect you and your assets in a serious accident.
If your coverage is insufficient, the law permits the victim to claim your assets to cover any incurred damages. Evaluating the value of your assets (what you stand to lose in the event of an accident) can help you determine the appropriate amount of coverage you should maintain.
Top of Form
Bottom of Form
The value of your assets may guide you in determining the amount of coverage you should carry. Additional coverages that you may wasn’t to consider include:
- Collision Coverage: Pays for vehicle damages from hitting another car or object, regardless of fault.
- Comprehensive Coverage: Covers non-collision incidents like theft, severe weather, and collisions with animals.
- Roadside Assistance Coverage: Pays for towing, battery jump-starts, tire changes, and more if your car breaks down.
- Personal Injury Protection (PIP) Coverage: Helps pay for medical bills, lost wages, and related expenses for you and passengers if you’re in an accident.
- Uninsured/Underinsured Motorist Coverage: Covers your damages and injuries if an uninsured or underinsured driver causes an accident.
Factors Influencing Premiums
Ohio’s affordable insurance rates result from factors like lower population density, less aggressive driving, and a competitive insurance market, all contributing to fewer accidents and claims. Premiums can vary significantly among providers even within the same state. For example, Nationwide offers the cheapest full coverage at an annual premium of $485, while Westfield’s average annual premium is $1,111.
Insurance costs are also influenced by coverage levels. Minimum coverage costs around $29 per month, while full coverage is about $65 per month. Although full coverage is costlier, it provides comprehensive benefits and protection against various incidents. Adding comprehensive and collision coverages increases premiums, but higher deductibles can make these additions more affordable. Remember, this deductible applies to each claim you file.
Penalties for Non-Compliance
In Ohio, it’s crucial to have proof of insurance when driving. Driving without insurance is a serious offense with significant consequences. If convicted, you face license suspension for three months on your first offense and up to one year for subsequent offenses. Your vehicle may also be impounded.
To reclaim your car and license, you must pay several costs and fines, including court costs, impound fees, and a license reinstatement fee. Additionally, you might need to file an SR-22 form, a certificate of financial responsibility that proves you carry the required amount of insurance. If your policy lapses, your SR-22 is revoked, and you lose driving privileges. Keeping up with insurance requirements and having your insurance card in your car can help avoid these issues.
Comparison Shopping Tips
Finding the cheapest car insurance in Ohio involves comparing quotes from multiple providers to secure the best value for state minimum or full coverage policies that meet your needs. Exploring various options ensures you get the best deal on your car insurance.
Potential Discounts and Savings
Ohio drivers can benefit from the 8-hour point insurance reduction program to improve their driving record and reduce insurance premiums. The online 2 Point Driving Class is an eight-hour program that covers a comprehensive curriculum. A six-hour insurance point reduction class does not fully cover the curriculum of the two-point class. The 2 Point Driving Class program offers a comprehensive curriculum on safe driving techniques, traffic regulations, and defensive driving strategies, specifically designed for drivers with traffic violations.
Completing the program can earn a 2-point credit on your driving record, which is beneficial for those with 2 or 6-point violations, helping alleviate negative impacts on their record and potential premium increases. This credit is especially advantageous for drivers who have accumulated two or six-point driving violations. It helps reduce the negative impact on their driving record and potential insurance premium increases.
Conclusion
States have an obligation to ensure safety on roads by ensuring at fault drivers pay for damages and injuries after accidents. If you’re the at-fault driver, the law obligates you to meet the cost incurred by third parties for damages and injuries. This is usually from your liability insurance cover but only up to the policy limits.
Understanding Ohio’s car insurance requirements and options is essential for complying with the law and protecting yourself financially. By exploring various insurers and coverage options, you can find the best rates and ensure adequate protection in case of an accident. Regularly review and update your insurance policy to match your needs and driving habits, and always carry proof of insurance to avoid penalties and complications.
Sources
https://insurify.com/car-insurance/ohio/minimum-requirements/
https://insurance.ohio.gov/consumers/automobile/auto-insurance-min-coverage-reqs
https://www.moneygeek.com/insurance/auto/average-cost-car-insurance-ohio/
https://www.improveddriving.com/driving-course/6-hour-insurance-point-reduction-class/
Jim Trakas is a licensed instructor with the Ohio Department of Public Safety’s Driver Training Program. He has a distinguished history of public service, including his role as a former member of the Ohio House of Representatives and current Councilperson at Large for the City of Independence.
As the founder and owner of the American Online Learning Center, Jim has been providing comprehensive behavioral corrective programming since 2014, helping individuals achieve meaningful personal growth and development.
Jim’s commitment to service extends to his military background, where he has earned several prestigious honors. He was awarded the Ohio Commendation Medal by the Ohio Army National Guard and the Pandemic Campaign Medal by the United States Public Health Service. Additionally, he is an Honor Graduate of the Ohio Military Reserve Training Academy’s Officer Candidate School and a two-time recipient of the Military Proficiency Award, as well as the Military Achievement Award.
