Ohio auto insurance expected to become more expensive for some drivers
Ohio drivers are expected to see the costs of auto insurance climb, but not because insurance companies are raising rates for coverage. A new law has been approved by the Ohio Legislature that will increase the minimum level of auto insurance drivers are required to carry in the state. Though the law has been approved by both the Ohio House and Senate, it must still be signed by Governor John Kasich. If the law receives the Governor’s approval, Ohio drivers will have to upgrade their insurance policies.
Law calls for increase in property damage liability
The law calls for the minimum level of auto insurance coverage in Ohio for property damage to be increased from $7,500 to $25,000. State lawmakers claim that increasing the minimum auto insurance requirements is necessary in order to protect consumers. Ohio has some of the most lenient auto insurance requirements in the country and lawmakers believe that this puts some drivers at risk. Changes to the state’s minimum auto insurance requirements have not been made since 1969. The cost of cars and their maintenance, however, has increased exponentially.
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Higher requirements may mean better protection
State officials believe that Ohio drivers will not see dramatic increases to their auto insurance premiums. Most drivers already have coverage above the state’s minimum requirements. These people will not see any increase in the premiums they pay for coverage. Those that opt to carry the minimum level of coverage they are allowed to by state law will have to upgrade their policies. There are many factors that go into calculating how much auto insurance costs for drivers, making it difficult for the state to provide an accurate forecast of what costs drivers opting to upgrade their policies will face.
Insurers welcome increase requirements
The auto insurance industry welcomes the changes being made to the state’s minimum requirement law. Insurers have been expressing concern that the minimum requirement for auto insurance in Ohio does not adequately protect consumers from accidents, especially those involving damage to properties. The new requirements may help provide more protection for drivers that are interested in carrying the absolute minimum level of auto insurance coverage.