Auto insurance requirements raised in Ohio

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Ohio drivers will have to up their insurance coverage in order to comply with state’s new standards

Drivers in Ohio are set to see an increase in their auto insurance premiums as the state increases its minimum insurance requirements. The last time Ohio’s minimum insurance requirements were changed was in the 1960s and state officials suggest that the old requirements are no longer able to cover the costs associated with accidents. This belief is supported by many of the state’s insurers, most of who have been pushing for updated standards for the past several years.

Minimum coverage requirements make a significant leap

Ohio auto insurance premiumsThe minimum level of coverage for bodily injury of one person per accident is now $25,000, up from $12,500. Minimum coverage for the injury of multiple people in one accident has been raised to $50,000 from the previous $25,000. The minimum coverage requirement for property damage per accident is now $25,000, up from $7,500. Drivers are not required to abide by these new requirements until they renew their auto insurance policies.

Cost of medical care may be the reason behind higher requirements

Insurance premiums for drivers are expected to rise between $5 and $15 due to the new requirements. State officials suggest that the financial impact will be modest for most people, but those having trouble paying for their current level of insurance coverage may find themselves under more financial strain. Lawmakers note that an increase in the state’s insurance requirements is necessary due to the rising cost of medical care and other factors that made the old requirements financially inefficient.

Lawmakers seek to limit financial pressure on drivers

Lawmakers suggest that Ohio is now in line with the auto insurance requirements that are common in other states. Changing insurance requirements have become quite common throughout the U.S. as states work to ensure that the auto insurers can adequately adapt to changes in the economy and their given market. Medical costs are typically cited as the primary reason behind an increase in minimum insurance requirements. Ohio lawmakers noted that they were careful when devising new requirements for insurance coverage in order to limit the financial pressure it would put on the state’s drivers.

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