For those Ohio drivers with state minimum limits, you’re going to see a change in your Ohio car insurance policy.
And for those with higher limits already, this post is still for you. Go ahead and scroll to the bottom to read how the new law will benefit you 🙂
A new law that took effect December 22, 2013 has increased the Ohio car insurance minimum limits.
The state of Ohio (like many states) has a “financial responsibility” law that basically says:
In order to operate a vehicle in the state of Ohio you must prove you are financially responsible to pay for bodily injury or damages you cause as the result of an accident.
The Ohio car insurance minimum limits = the “financial responsibility” limits.
The infographic at the beginning of this post shows you the difference between the prior and new minimum limits.
So, what does this change mean for your Ohio car insurance policy?
- All new Ohio car insurance policies can be no less than the new minimum limits. For those that sputter, “but what about the $12,500/$25,000/$7,500 limit?”, we have to answer- “that was in the past.”
- As mentioned before, your premium will most likely increase. It makes sense that the more coverage that is provided, the more premium it will be- right?
- Remember, this is state law. So, if you are upset by the increase, you won’t be able to go to a different insurance company and get the lower limit back. All insurance companies must comply with the law.
- The increase in limit will only happen at renewal time. So no worries about a mid-term change. You’ll have a little more time to prepare yourself.
- If you get stopped by the police and have to show your insurance ID card, it will still be valid. A policy in effect on the effective date of the increase continues to constitute proof of financial responsibility for the remainder of the term of that policy.
I already have coverage above the state minimum liability limits. How does the new law benefit me?
I have long thought that our state minimum limits were ridiculous. Yes, it was better than having no insurance, but not by much. Even a minor accident could exceed the property damage limit or the bodily injury limit and then you were stuck collecting any remaining money from the at-fault party via a civil lawsuit. And IF they had it to give. A big IF usually.
Remember, a limit is a limit, is a limit– when it’s reached, the insurance company walks away.
So, the increase in Ohio car insurance minimum liability limits means there is more money available immediately to pay your bodily injuries and/or property damage when an accident happens.
A time and aggravation saver most definitely. Additional peace of mind? Oh yeah.
Any questions or comments? Fire away………