Q: What is an SR22 bond and how is it different from regular car insurance
A: If you are considering taking out an Ohio Sr22 Bond, you first need to understand the difference between an SR22 Bond and a regular auto insurance policy. An SR22 Bond is a guarantee that a driver has the state minimum liability coverage. The bond only pays out if the named driver is at fault in an accident and either causes bodily injury or property damage to the other driver or their vehicle. The bond does NOT cover the insured or their vehicle at all. If you want coverage on your own vehicle, or medical coverage on yourself and your passengers, this bond will not work for you. Instead, you should take out a regular auto insurance policy (and if the Ohio BMV requires you to file this bond, it can easily be attached to a regular car insurance policy).
Q: What are the state minimum limits in Ohio?
A: If you're at fault in an accident and you injure someone, the SR22 bond will pay up to $12,500 per person for injuries, up to $25,000 total. Also, if the accident causes damage to the other vehicle, it will pay up to $7500 for property damage. Therefore, the most this bond will ever pay from a single accident is $32,500. If the damages you caused exceed the policy limits, you may be held responsible for the remainder of the damage.
Q: Does it make sense for someone who does not require a state filing to buy an SR22 bond in lieu of traditional auto insurance?
A: Yes, but only if all 3 of the following apply:
1. You want no more coverage on any vehicle you drive other than the state minimum liability.
2. You assume all risk as far as injury to yourself and passengers and you also assume all risk if there is damage to your car.
3. Traditional insurance will cover your vehicle driven by another driver should you loan your vehicle to them. An SR22 Bond does NOT cover anyone for liability but YOU. As long as you understand these 3 things and the risks associated, then an SR22 bond might be the right option.
Q: What are the advantages of buying a bond instead of regular car insurance?
A: If a driver is only interested in buying the absolute state minimum coverage on theirself and want no coverage on their vehicle or anyone else, then an SR22 bond is significantly cheaper than traditional insurance.
Q: What happens if I am late on a payment?
A: With most companies, you will most likely have to pay a late fee, but as long as you are not more than 10 days late, you will be fine. If you go beyond 10 days late (or 2 weeks with some companies), your policy will lapse. WARNING! Although all of my companies do allow this grace period, some companies do NOT! Some companies will cancel the bond if payment is one day late. Be sure to check with your agent about your bond.
Q: What happens if I let the bond lapse?
A: If you required a state filing by the Ohio BMV, then the company is obligated to notify the Ohio BMV that your policy has cancelled. This will result in your license being suspended again, and you may have to start the license reinstatement process again. In addition, you will probably have to pay a late fee and reinstatement fee on top of your payment in order to reinstate the bond.
Q: How long will the Ohio BMV require me to carry a state filing?
A: That depends on the severity of the law you violated that triggered a filing requirement in the fist place. But generally, requirements are usually in the range of 3-5 years.
Q: Will this bond expire when I am no longer required to carry a state filing?
A: No! In fact, the state filings will not cease until you notify the agent or company that the state filing is no longer required. This is important because there are additional fees associated with a state filing requirement. I have seen people who have needlessly paid additional state filing fees for long periods of time simply because they never requested the filings to stop. The BMV will tell you how long you need to continue filing. Be sure to keep the expiration date in mind.
Q: How long does it take for me to be covered on an SR22 bond?
A: In many cases it only takes minutes to be covered.
Q: How long does it take for the BMV to process my bond?
A: Generally, one business day. Of course, we can print your paperwork right away and email/fax it to you. To save time, you may take the paperwork to the BMV personally if you wish to speed things up.
Q: Once I pay for my SR22 bond, is my license automatically reinstated?
A: Usually No! In many cases, the Ohio BMV requires you to also pay a license reinstatement fee. In either case, I would highly recommend contacting the BMV before resuming driving. Only the BMV can officially tell you that your license is once again valid. It's better to be safe than sorry!