The purpose of the financial responsibility law is to assure compensation to victims when injuries or damages are sustained in a crash. Ohio does not have a compulsory automobile insurance law. 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 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.

• 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 low enforcement when stopped for a traffic violation, a vehicle safety inspection or involvement in a traffic crash.
• When contacted by mail through the Ohio BMV's random FR verification process.

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.

Satisfying the FR Law through 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. Uninsured motorists property damage (UMPD) coverage is an option to consider when only purchasing auto liability insurance. UMPD provides coverage for damage to your vehicle if involved in an accident with an uninsured motorist. If the auto insurance policy includes collision coverage, UMPD is not required to be offered.

Other provisions of Ohio's FR law include:

• Requirement that FR law information become part of Ohio's driver education curriculum
• Provision establishing that insurance companies are prohibited from increasing policyholder insurance rates based solely on involvement in a single not-at-fault accident or any not-at-fault accident with an uninsured driver
• Provision prohibiting insurers from considering an applicants lack of insurance when establishing a new rate, unless actuarially justified
• Any auto insurance policy not providing sufficient coverage to satisfy the FR low must include a clear, written warning indicating that it does not meet FR law requirements
• The establishment of a task force to study FR enforcement and verification procedures, including the concept of a new FR random verification program

The Ohio BMV's random verification program is the latest step in ensuring greater compliance with the state's FR law. This process includes mailing letters to a random selection of 5% of the 5.6 million registered vehicle and noncommercial truck owners in Ohio, or about 280,000 notices a year. Those receiving a letter requesting FR proof are given up to 45 days to provide it. Upon receipt of a letter, recipients are required to return to the BMV within 30 days a copy of either their auto insurance policy's declarations page, a copy of their insurance ID card or a copy of their authorized FR bond. If not provided, the recipient is sent another letter stating that in 15 days the BMV will suspend his or her drivers license unless FR compliance is sent in.

Questions regarding the random verification program are being handled through a special hotline at 1-800-636-9825.

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, Financial Responsibility Division, if they suspect that the others involved in the crash were uninsured.

This report is different from the report taken by law enforcement officials at the scene of the accident. This filing process is optional and can be done within six months of the date of the crash. 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 company.