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17.8 Auto Insurance Laws

Ohio Motor Vehicle Financial Responsibility Law​

Financial responsibility laws help ensure that victims of motor vehicle crashes can receive compensation for bodily injury or property damage. Proof of financial responsibility may be established through any of the following:

  • A financial responsibility identification card (auto insurance ID card)
  • A certificate of proof of financial responsibility on a form provided by the court
  • A liability insurance policy or its declarations page
    • A binder issued while a motor vehicle liability policy is pending also satisfies the requirement
  • A $30,000 bond or certificate of deposit
  • A certificate of self-insurance, which may be issued to a person who:
    • Has more than 25 motor vehicles registered in Ohio in their name
    • Submits a self-insurance application to the Registrar of Motor Vehicles
    • Demonstrates the financial ability to pay judgments. Self-insurance may cover property damage, bodily injury liability, or both.

The most common way to prove financial responsibility is with an auto insurance ID card showing coverage that meets Ohio’s minimum liability limits of $25,000/$50,000/$25,000.

When proof of financial responsibility is required, it may be presented electronically using a cellular phone, PDA, or computer. Proof must be provided upon request:

  • To any peace officer
  • To any court or traffic violation bureau
  • When an accident occurs that requires an accident report
  • Whenever requested by the Registrar of Motor Vehicles

Parties involved in a motor vehicle accident may enter into a written agreement establishing the amount of damages and a payment schedule. If the agreement is filed with the Registrar of Motor Vehicles, the Registrar may enforce it by suspending the driver’s license of a party who fails to make the required payments.

Note

A person whose driver’s license has been suspended must file proof of financial responsibility with the Registrar for 3 years for a Class D, E, or F suspension, and for 5 years for a Class A, B, or C suspension.

Failure to report a motor vehicle accident is a misdemeanor. Failure to surrender a suspended driver’s license or registration may result in a fine of up to $500, imprisonment for up to 30 days, or both. Other violations of financial responsibility or motor vehicle laws may result in a fine of up to $500, imprisonment for up to 90 days, or both.

Uninsured/Underinsured Motorist (UM/UIM)​

Bodily Injury​

Insurers may offer uninsured/underinsured motorist (UM/UIM) coverage with an auto liability policy, but they are not required to include it.

For this coverage, a motor vehicle is a vehicle designed and primarily used on public roads, including:

  • Automobiles and trucks
  • Semi tractor-trailers
  • Motorcycles
  • Buses
  • Motor homes, when not stationary or being used as a residence or office

The following are not considered motor vehicles for purposes of this coverage: trolleys, streetcars, trailers, railroad engines or cars, motorized bicycles, golf carts, off-road vehicles, snowmobiles, forklifts, aircraft, watercraft, construction equipment, tractors or other vehicles designed and used for agriculture, mobile homes, vehicles operating on treads or rails, or similar vehicles.

An uninsured motorist is generally a vehicle owner or operator who lacks applicable bodily injury liability coverage. Except for authorized self-insurers, this includes situations where:

  • No bodily injury liability policy or bond covers the owner or operator
  • The insurer becomes insolvent or denies coverage to the vehicle owner or operator
  • The identity of the vehicle owner or operator cannot be determined
  • The vehicle owner or operator has diplomatic immunity
  • The vehicle owner or operator has immunity under state law

Uninsured Motorist (UM) coverage must apply when the at-fault motorist’s insurer denies coverage. For hit-and-run claims, the loss must be supported by independent evidence.

If Uninsured Motorist (UM) coverage is included in the policy, it provides bodily injury protection when the amount available from the at-fault driver’s coverage is less than the insured’s UM coverage limit.

In Ohio, Underinsured Motorist (UIM) coverage cannot be treated as excess coverage. UIM coverage provides protection only up to the amount that would have been available under the insured’s UM coverage if the at-fault driver had been uninsured at the time of the accident.

Property Damage​

If a policy offers UM/UIM bodily injury coverage, it must also offer UM/UIM motor vehicle property damage coverage. However, this requirement does not apply when the insured already has collision coverage.

UM/UIM motor vehicle property damage coverage is not required to exceed $7,500 or the amount otherwise available under the policy for vehicle damage, whichever is less. The deductible for this coverage may not exceed $250.

UM/UIM Required Limits​

The minimum limits for UM/UIM bodily injury coverage are the same as Ohio’s minimum bodily injury liability limits:

  • $25,000 per person / $50,000 per accident (25/50)

Prohibition Against Use of Intrafamily Liability Exclusion​

Intrafamily liability exclusion is a policy provision that excludes coverage for a vehicle owner or operator when a family member makes a claim for bodily injury or death. The purpose of this exclusion is to help prevent collusion and insurance fraud.

The intrafamily liability exclusion does not apply when the legal action involves wrongful death. It also does not apply when the policy includes UM/UIM coverage and that coverage does not contain its own intrafamily liability exclusion.

Stacked and Non-stacked​

Policies that include UM/UIM coverage may contain provisions that prohibit stacking, or combining coverage limits from multiple policies or insureds. Prohibited stacking may include:

  • Interfamily stacking — Combining coverage limits for the same person or for two or more people who are not members of the same household, whether or not they are related
  • Intrafamily stacking — Combining coverage limits for the same person or for two or more family members of the same household

Policies with a per-person bodily injury limit, including death, may include terms stating that:

  • All claims resulting from one person’s bodily injury or death are collectively subject to the policy’s per-person coverage limit; AND
  • For purposes of applying that limit, all related claims are treated as a single claim; AND
  • The limit applies regardless of the number of insureds, claims made, vehicles covered by the policy, or vehicles involved in the accident.

Cancellation and Nonrenewal of Personal Auto Policies​

If an auto policy has been in effect for more than 90 days and is not a renewal, the insurer may cancel it only for one or more of the following reasons:

  • Nonpayment of premium, which requires at least 10 days’ notice
  • Fraud or material misrepresentation
  • Suspension, revocation, or expiration of the insured’s driver’s license
  • The insured moves to a jurisdiction where the insurer is not authorized to issue insurance policies

A written cancellation notice must be mailed to the insured’s last known address and include:

  • The policy number
  • The date of the notice and the effective date of cancellation
  • The reason for cancellation, or a statement that the reason will be provided within 5 days upon request
  • A statement explaining the insured’s right to appeal the cancellation grounds to the Superintendent

For all cancellation reasons other than nonpayment of premium, the insurer must provide the insured with at least 30 days’ notice before cancellation becomes effective.

An insurer may nonrenew an auto policy by providing written notice at least 30 days before the policy’s expiration date. The notice must contain the same information required in a cancellation notice, except for the statement regarding the insured’s right to appeal.

Insurers may not refuse to issue, cancel, nonrenew, or increase the premium of an auto policy because of:

  • A motor vehicle accident that occurred while the policyholder was performing official duties as a law enforcement officer, firefighter, investigator, emergency vehicle operator, or snow/ice removal operator
  • A traffic violation issued based on evidence from a traffic law photo-monitoring device

Use of Non-OEM Aftermarket Crash Parts​

The insurer must notify the insured in advance if it intends to use non-original equipment manufacturer (non-OEM or aftermarket) parts to repair the insured’s vehicle.

A written repair estimate must clearly identify each aftermarket part and be signed by the person requesting the repair. The estimate must also include a statement explaining that:

The estimate is based on the use of one or more aftermarket crash parts supplied by a source other than the vehicle manufacturer, and any warranties on those parts are provided by the parts manufacturer or distributor, not the vehicle manufacturer.

Any aftermarket part must have the manufacturer’s business name or logo permanently affixed or inscribed on the part. When practical, this identification must remain accessible after installation. A salvage part may be used if it is of like kind and quality to the damaged part and is obtained from a salvage vehicle by a licensed salvage motor vehicle dealer.

Personal Auto ('18) Policy​

Selected Endorsements – Amendment of Policy Provisions (PP 01 86)​

Throughout the policy, “minimum limits” refers to Ohio’s required automobile liability limits of:

  • $25,000/$50,000/$25,000 — $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $25,000 per accident for property damage.

Under Part A – Liability Coverage, the following exclusion applies:

  • Liability coverage does not apply to bodily injury suffered by an insured or family member.
    • Exception: The exclusion does not apply when a wrongful death action is brought against an insured.