Ohio Automobile Financial Responsibilty Law
The purpose of the FR law is to assure compensation to victims when injuries or damages are sustained in a crash. Under Ohio’s FR law, motorists are required to sign a separate form acknowledging financial responsibility upon application for a new or renewed drivers license and when vehicle license plates are purchased or renewed. A surety bond of $30,000 issued by an authorized surety or insurance company, A certificate issued by the Ohio Bureau of Motor Vehicles (BMV) indicating that money or government bonds in the amount of $30,000 is on deposit with the Treasurer of the State, A certificate issued by the BMV showing a bond secured by real estate having equity of at least $60,000. A certificate of self-insurance that is issued by the BMV, available to those with more than 25 vehicles registered in their name or a company’s name.
Proof of financial responsibility is required for all motorists involved in a violation requiring a court appearance, involved in a crash causing injury, death or more than $400 in property damage and you choose to file a Motor Vehicle Crash Report with the BMV, upon request by law enforcement when stopped for a traffic violation, a vehicle safety inspection or involvement in a traffic crash, and when contacted by mail through the BMV’s random financial responsibility verification process.
One method of proving Financial responsibilty is by showing an “auto insurance identification” card. ID cards are provided by insurers upon issuance or renewal of an auto insurance policy. The card should be kept with the insured vehicle so it will be readily available upon request by an officer.
Financial responsibility penalties include loss of drivers license for at least 30 days on up to a year, license plates and vehicle registration suspension, license reinstatement payment of $75 to $500 dollars, requirement to obtain auto insurance and the third offense and up may mean forfeiture of vehicle. Penalties also apply to a vehicle owner who is not involved in a traffic offense but whose automobile is. If a vehicle owner loans a car to someone and that person is involved in an accident, both are required to prove financial responsibility.
Ohio has a random verification process to see that drivers have automobile insurance. This process includes mailing letters to a random selection of registered Ohio vehicle and noncommercial truck owners about 5,400 notices per week 280,000 notices each year. Recipients of letters are given 21 days to respond to this first request for FR proof. The BMV then allows up to 10 days before the first “Notice of Suspension” is mailed. This “Notice” allows a 60-day grace period in which the individual may still provide financial responsibility proof prior to the suspension taking effect.
A second “Notice of Suspension” is sent via certified mail 42 days before the start of the suspension. This is to ensure that the BMV has the proper mailing address for the registered vehicle owner. Considering this, then there is actually a three-month period for an individual to prove financial responsibility compliance prior to being placed under suspension.
So don’t think if you are careful and don’t have an accident you can get by without automobile insurance. Ohio may just send you a letter wanting to see proof that you have insurance and it will have to have been in effect before you received the letter so you can’t just sit back and see if you get the letter and then run out and get insurance you have to have already had insurance.
