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.
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
FR 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.
Ways to prove FR
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.
FR 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.
FR minimum liability limits
As of April 2002, the debate continues on HB 363 which would increase
Ohio’s minimum liability limits to $25,000 per person/$50,000
per accident under bodily injury liability and $25,000 per person
for property damage liability. At press time, the bill remains under
consideration for action in 2002.
Violator penalties
Penalties are listed in the chart below. Since September 1997,
first-time FR law violators are given occupational driving privileges
after serving 30 days of the 90-day license suspension period, as
long as they have obtained FR compliance and paid reinstatement
fees. First-time offenders accruing 12 points under Ohio’s
point system for traffic violations or convicted of a serious moving
violation are ineligible for occupational driving privileges. This
law change was included in Am. Sub. HB 261.
Note: Penalties also apply to a vehicle owner who
is not involved in a traffic offense but whose automobile is. If
a vehicle owner loans a car to someone and that person is involved
in an accident, both are required to prove FR.
Crash report filing optional
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. Form 3303 is also available from the BMV’s Web site
at www.state.oh.us/odps/division/bmv/frm_dnld.html.
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.
Questions and concerns have been raised regarding the process and
cost of the FR random verification program. Some questioned the
inconvenience of completing the verification form and paying for
its return postage.
In 2000 the Governor appointed a study committee to research the
program. Members discussed the creation of an electronic link between
insurers and the BMV to check FR compliance, and conducted an evaluation
of the current random verification process.
The FR study committee presented its findings to the Governor in
October 2001. The committee recommended maintaining the current
random verification process. Following a review of electronic reporting
systems used in other states, the committee found that states using
electronic reporting do so at a greater cost to taxpayers compared
to Ohio’s random verification process. The committee also reported
that Ohio’s current program was just as effective as the more
costly electronic reporting systems used by some states to weed
out those who are driving without insurance or other means of compliance.
Committee members did see a need to refine Ohio’s program,
especially in the situations involving seasonal or inoperable vehicles,
military personnel, medical cases and sold vehicles.
For questions regarding the random verification program, contact
the FR hotline at 1-800-636-9825 or visit the BMV Web site at www.state.oh.us/odps/division/bmv/proof_fr.html.
Click here
for "FR Suspensions by County."
Source: Ohio Bureau of Motor Vehicles
 |
220,787 of Ohio’s traffic stops
in 2000 resulted in “driving without insurance” convictions.
(Ohio Bureau of Motor Vehicles) |
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