Financial Responsibility

Financial responsibility requirements
Financial responsibility proof requirements
Ways to prove financial responsibility
Financial responsibility satisfaction via insurance
Report filing optional for crash victims
Random verification program

Ohio's Financial Responsibility Law

Ohio’s financial responsibility (FR) law was enacted in October, 1953. The FR law applies to owners of Ohio registered vehicles, motorists leasing vehicles from licensed dealers and those applying for any type of drivers license, including a probationary license. The law states that "no person shall operate or permit the operation of a motor vehicle unless proof of financial responsibility is maintained with respect to that vehicle, or in the case of a driver who is not the owner, with respect to his or her operation of that vehicle."

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.

Here is how the form reads:
I affirm that the owners (or lessees of leased vehicle) now have insurance or other proof of financial responsibility (FR proof) covering this vehicle and will not operate or permit the operation of any vechile whithout FR proof; All previous registration fees due have been paid; this plate category is correct; and this vehicle will not be used as a commercial or farm vehicle unless so registered.

Financial responsibility requirements
There are several ways a motorist can meet FR law requirements. Only one of the following proofs of financial responsibility must be maintained:

An auto liability insurance policy. Motorists choosing to comply through insurance will receive ID cards from their insurance company that indicate FR requirements have been met.

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 issued by the BMV, available to those with more than 25 vehicles registered in their name or a company’s name

Financial responsibility proof requirements
Proof of FR is required for 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
When contacted by mail through the BMV’s random FR verification process

One method of proving FR 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.

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Ways to prove financial responsibility
When law enforcement officers request FR proof and motorists don’t have it available, they are given a notice explaining the options to provide such proof. The options include:

Sending a copy when paying the fine
Bringing FR proof when appearing in traffic court
Sending FR proof when requested by the BMV

Failure to comply initiates the BMV’s suspension process.

Financial responsibility satisfaction via insurance
If a person satisfies the law by carrying insurance, the minimum liability limits allowable by law are: bodily injury liability, $12,500 per person and $25,000 per accident; and property damage liability, $7,500 per accident.

Since some irresponsible drivers may choose to ignore the FR law, the inclusion of Uninsured and Underinsured Motorists (UM/UIM) auto insurance coverages should be considered. UM/UIM coverages provide protection for injuries caused by out-of-state drivers, at-fault uninsured motorists, hit-and-run drivers and at-fault drivers whose policy limits are insufficient to cover losses.

Report filing optional for crash victims
Drivers involved in a motor vehicle crash resulting in bodily injury, death or causing more than $400 in property damage should consider filing a Motor Vehicle Crash Report with the BMV, FR Division, if they suspect that the others involved in the crash were uninsured.

This report is different from reports taken by law enforcement officials at the accident scene. This optional filing process can be done within six months of the crash date. Once filed, the report provides the BMV with necessary information to contact the alleged driver(s) for FR proof. If proof cannot be provided, the license suspension process begins. Ohio Motor Vehicle Crash Report forms are available from Ohio Highway Patrol posts, insurance agents or companies, other law enforcement agencies or the Ohio Insurance Institute.

Random verification program
This process includes mailing letters to a random selection (5%) 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 FR 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, there is actually a three-month period for an individual to prove FR compliance prior to being placed under suspension.

For answers to questions regarding the random verification program, contact the financial responsibility hotline at 1-800-636-9825.

(Source: The Ohio Insurance Institute)

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