Drivers must now carry a larger amount of coverage in order to comply with the state’s law.
For the first time since 1969, Ohio has increased the minimum required coverage that drivers must carry in order to be able to legally drive.
This new law will come into effect as of December 2013, and will considerably increase the current minimum.
In fact, it is estimated that the minimum coverage for drivers will be at least double what it currently is. This will mean that drivers will have to carry auto insurance that covers at least $25,000 per person, $50,000 per accident in which multiple people are involved, and $25,000 for property damage.
It is estimated that only approximate 5 percent of drivers carry the new auto insurance minimums.
According to the Ohio Insurance Institute, approximately 400,000 drivers in the state have enough auto insurance at the moment to meet the minimums that will go into effect in December. As of yet, it is unknown exactly how much more drivers will be facing in their premiums.
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A number of auto insurance companies have either declined to make any estimates or have stated that it is simply too early to know what the difference to premiums will be. This is because there are a number of different factors that are included in the calculation of premiums – including vehicle type, age, driving record, where the driver lives, etc. Therefore, it is not easy to tell precisely what impact an increase in coverage will have overall.
Ohio officials have also stated that because the auto insurance marketplace in the state is quite competitive, drivers will still have options and are encouraged to comparison shop.
According to the president of the institute, Dan Kelso, “It’s going to affect everyone differently.” A spokesman for the Ohio Department of Insurance, Chris Brock, expanded on that auto insurance statement by saying that “The Department does not have any premium projections based on the recently passed minimum-requirements law.” He also added that “Ohio currently has the 10th-lowest auto rates in the country, and these changes only impact one of many rating factors used by companies to determine premiums.”