Auto insurance minimum coverage required in Ohio may rise

car insurance auto claims

Auto Insurance car accidentDrivers in the state may see a number of changes to their vehicle coverage over the next while.

Ohio auto insurance customers have just discovered that there may be a number of different coverage changes that they will be seeing over the next year and beyond.

This is due to the fact that House Bill 278 was passed by the Ohio House of Representatives.

Should the bill be approved, it will mean that the minimum auto insurance amounts that are required for valid proof of financial responsibility in the state, as well as a number of other legal changes, will be put into place. According to State Rep. Gerald Stebelton (R-Lancaster), this represents the third time since he first took office that he has made the proposal of the bill.

This could give drivers with better auto insurance protection against being under covered.

Stebelton said that “It would provide more protection against low insured policies and should provided rate relief.” He went on to explain that the last time the minimum limit was increased was forty three years ago. He added that “In that period of time, costs have skyrocketed.”

According to Stebelton, the state currently has minimum limits that are among the smallest of all the states. “As it stands now, we have the next to (the) lowest limits in the country. All this bill does is take us up to where 35 other states are.”

Should the auto insurance bill be approved, it will mean that the personal liability minimum in the state will increase from $12,500 to become $25,000, for personal liability. Furthermore, it will increase from the current $25,000 to become $50,000 should there be two or more people involved. Additionally, the minimum for personal liability for damage that has been caused to property will increase from the current $7,500 to $25,000.

The bill would also change other parts of the auto insurance law. For example, it will deem it deceptive and unfair if there is discrimination against policyholders. Moreover, it would change the definition of vehicle coverage and will provide a strict definition of the types of vehicles that are covered. The minimum policy period would also be reduced, to become one year, instead. Among the reasons that insurers are permitted to cancel policies would now include concealment, fraud, and license revocation. However, before the policy could be cancelled, a due process of law has been provided by the bill.

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