Auto insurance is legally required in several states of America in order to be granted permission to drive. Not only does insurance provide you with a safety net in case of emergencies, it also relieves you of the stress involved in making exorbitant payments from your own pockets.
Different states have different conditions you must meet when applying for auto insurance. In Ohio, auto insurance requirements mandate all drivers to carry coverage for property damage as well as injuries sustained by passengers. A minimum of $7500 is required for property damage liability coverage and a minimum of $12,500 per person in an accident as well as $25,000 for all persons in any one accident as part of the bodily injury liability coverage. While this lower limit has been set by the state government, you will find that insurance companies always encourage that you opt for a policy offering greater than this minimum. This ensures greater protection for yourself and other passengers in the event of an accident; otherwise, you will be legally responsible for paying the additional costs.
Ohio auto insurance requirements also require obtaining a proof of financial responsibility from the Ohio Bureau of Motor Vehicles. This proof of financial responsibility works in conjunction with your insurance policy to demonstrate your ability to meet the expenses incurred due to an accident. Failure to present this proof upon request can result in immediate suspension of your driving rights and vehicle registration for up to two years. Repeat offenders can have their privileges revoked for a period of five years.
When applying for auto insurance, a good way to determine the coverage you need is to determine the costs of all your assets – things you may lose in the event of an accident. If you carry less coverage than the value of these assets, the victim is at full legal liberty to take them from you to pay for the cost of damages incurred.
While Ohio auto insurance requirements are stringent and the penalties equally harsh, they are in place to create a safer atmosphere on the roads. Driver safety is of utmost importance, and a good insurance policy is the most effective way of guaranteeing this.