Ohio Dept., BMV Team Up on Auto Information

As part of the Ohio Department of Insurance’s Auto Insurance Awareness Month, the Department of Insurance and the Bureau of Motor Vehicles are teaming up to inform consumers about the state’s minimum coverage requirements for automobile insurance.

“Many Ohioans think they can save money by purchasing only the bare minimum requirements,” said Insurance Director Mary Jo Hudson. “While minimum coverage does cost less, Ohioans need to realize that auto insurance minimum requirements don’t always provide adequate coverage in the event of an accident.”

“Vehicle owners should also realize they need to carry insurance on all vehicles that are registered, including those that are inoperable,” added Ohio Bureau of Motor Vehicles Registrar Mike Rankin. “Many people assume they can cancel the policy if the vehicle is not being driven.”

Ohio law requires drivers who purchase automobile insurance to demonstrate Financial Responsibility (FR) to have at least $12,500 of Bodily Injury or Death Liability Coverage per person ($25,000 for 2 or more persons), as well as $7,500 of Property Damage Liability Coverage for any one accident. However, many times accidents result in damages that exceed those minimum coverage limits. If the at-fault driver’s insurance policy limits are exceeded, then the at-fault driver may be personally responsible to pay the difference not covered by the automobile insurance policy.

If the driver didn’t have the funds to pay for the damages, they could face legal action and long-term debts. If the driver’s child was driving a car that was underinsured and was in an accident, they too would be held responsible for any damages and could face significant debt. The driver and the driver’s family could end up paying for one accident for the rest of their life! The Department of Insurance and Bureau of Motor Vehicles strongly encourage consumers to talk with their insurance agent to discuss the risks of only getting the bare minimum levels of insurance.

The Department’s new Auto Insurance On-Line Toolkit, available at www.ohioinsurance.gov, provides guidance on auto insurance needs for different life stages, information on state minimum requirements and a list of frequently asked questions about auto insurance. There are also links to the Bureau of Motor Vehicles and National Association of Insurance Commissioners’ (NAIC) Web site.