Ohio Passes Bill to Increase Minimum Amount of Car Insurance Coverage
December 13, 2012 – The Ohio House and Senate passed a billed that will increase the minimum amount of car insurance coverage required on a vehicle from $7,500 to $25,000.
With the cost of cars, car repair, and auto accidents skyrocketing, representatives found it necessary to increase the current minimum amount of car insurance coverage. One of the sponsors of the House bill, State Rep. Mark Okey, stated there has not been a change made to the minimum car insurance coverage limits since 1969. Leaving drivers vulnerable due to the cost of repairs being considerably lower 40 years ago. Think about it. In 1969 a new car probably cost around $3,500, but today that same car would probably cost over $30,000. Therefore, repairs to these cars are more expensive.
The new legislation would double current car insurance coverage requirements. Prior to the passage of the bill the minimum Ohio Liability Insurance coverage is $12,500 per injured person in one accident and $25,000 for all person injured in one accident.
State Rep. Okey continued to state that you can’t increase the car insurance coverage without increasing some of the premium, but also stated the increased cost for car insurance coverage would not be drastic. “It could be two to three dollars per month per policy.”
George Haenszel, executive vice president of Professional Insurance Agents Association of Ohio, Inc, stated to 10TV: “Our members (independent insurance agents) overwhelmly support increasing the minimum financial responsibility limits. While the majority of our members’ clients do not purchase minimum limits, many have had clients who were harmed by being involved in an accident with a motorist who carried minimum limits. We believe that the increased limits will help provide consumers with more appropriate insurance coverage and that the cost increase involved will be reasonable. The limits have not increased since 1969, while the cost of a vehicle and vehicle repair has increased many times over – making the $7,500 coverage for property damage inadequate based on the price of today’s cars.”