Automobile Insurance: WHAT'S WHAT

In 1993 the Ohio Legislature amended the Financial Responsibility Act. Now, every vehicle in Ohio must be covered by LIABILITY insurance. LIABILITY insurance pays for damages a driver may cause as a result of his negligent operation of that insured motor vehicle. If the operator does not own the vehicle he is driving, then the operator must be insured. If you are driving without LIABILITY insurance you are subject to serious sanctions.

If you are ticketed for a moving violation and the ticket cannot be waived (for example, driving under the influence of alcohol, etc.), you must present proof of LIABILITY insurance at your initial court appearance. If you are involved in an auto accident (regardless of who is at fault), you must provide proof of LIABILITY insurance to the Bureau of Motor Vehicles within 30 days.

Failure to provide proof of LIABILITY insurance will invoke the following penalties:

In addition to any penalty imposed by the court, your driving privileges will be suspended for at least 90 days. (if your license is suspended for this reason, you are not able to obtain occupational driving privileges.) You cannot get your license reinstated until you prove to the state that you have LIABILITY insurance. This proof must be filed with the state for a period of three years.
In addition, while your driver's license is under suspension, the owner's certificate of registration and registration plates must be surrendered to the State of Ohio. In other words, the car can't be used.

EXAMPLE #1

Q You cause an accident and have LIABILITY insurance at the time of the accident. What happens?

A Notify your insurance company and it will file the proper documentation with the Bereau of Motor Vehicles. Your driving privileges remain intact and you are not subject to any of the penalties under the Financial Responsibility Act.

EXAMPLE #2

Q  You cause an accident, but you do not have LIABILITY insurance. What happens?

A  Your license will automatically be suspended for 90 days, and you will not be able to drive for any reason, including going to and from work. If you harm someone in an accident and are taken to court, and a judgment is rendered against you, your license will remain suspended until the judgment against you is paid in full. If you ignore the suspension of your driver's license and operate your motor vehicle anyway, you will face a possible jail sentence, monetary fine, and an additional length of suspension of your driving privileges.

It is very important that you carry LIABILITY insurance. The law requires you to do so. By complying with the law, you protect your driving privileges, the security of your family, your job, and your assets.