What is an Ohio SR22 bond?

​ In Ohio, there's a unique term that is commonly used regarding auto insurance that you won't hear in any other state. That is the term “SR22 bond”. It is unique to Ohio because Ohio is the only state that has this type of bond that the term refers to.


     As common as the term is, an Ohio SR22 bond is actually incorrect. That’s because there's no such thing as an SR22 bond. But when you say the term, agents know exactly what you mean. This article will help clear the confusion so that you understand exactly what you need to know if you need to file an SR22 attachment with the Ohio BMV.



The incorrect term “SR22 bond” derives from two different things. To understand the difference let's look at each one:

Bond

• There are hundreds of types of different bonds that all have different meanings and accomplish different things. But regarding auto insurance and SR22 filings, this is referring to what's officially known as an Ohio Financial Responsibility Bond (FRB).

• An Ohio Financial Responsibility Bond is a special type of auto insurance coverage that gives you state minimum liability auto insurance coverage on any vehicle you drive (as long as it's not being used for business or commercial purposes). The only coverage this financial responsibility bond offers is state minimum liability coverage and that's it!
  • There is no medical coverage.
  • There is no uninsured motorist coverage.
  • There is also no comprehensive or collision coverage, which physically covers the vehicle you are driving (you need regular auto insurance coverage for that).
  • Unlike a regular auto insurance policy that can insure several drivers on one policy, an FRB only covers one driver (the person listed on the bond).
  • It is the absolute bare minimum and cheapest special type of auto insurance policy that you can buy and still drive legally in the state of Ohio.

SR22

• An SR22 is not a bond. An SR22 is not auto insurance coverage. An SR22 is simply a state filing that attaches onto some type of auto insurance policy, or bond like the FRB.

• The best way to understand an SR22 filing is to think of it as a tattletale. If you're required by the Ohio BMV to carry an SR22 filing to get your license back, an SR22 needs to be attached to whatever type of auto insurance policy you buy. The purpose of the SR22 is to tattle on you if you ever let a policy cancel, lapse or expire. When a policy cancels, the auto insurance company is required by law to notify the BMV that your policy that has lapsed, and that your SR22 is no longer active. Once this happens, your license will be suspended again until you put another active policy in place with the SR22 attached to it.

The proper way to set up an SR22 filing




This is very simple. 

• If you own a vehicle, it is best to attach the SR22 filing onto a regular auto insurance policy. 

 

• If you do if not own a vehicle, a financial responsibility bond is the least expensive way to satisfy an SR22 requirement. 

     *** Note: There are some drivers who own vehicles but choose to take out a financial responsibility bond and attach the SR22 filing to it, rather than attaching the SR22 filing to a regular auto insurance policy to save money.  Although this is legal to do, it’s really not wise to insure yourself this way if you own a vehicle.


Insuring your own vehicle with just a financial responsibility bond is very lousy coverage!  The few dollars you save is not worth the coverage you sacrifice.  There are major downsides to insuring your own vehicle with a Financial Responsibility Bond:

• No one but you can ever drive your vehicle.  An FRB only covers one driver, and that’s the person’s name on the bond.  If you loan your vehicle to someone else and they have an accident, you are going to be the one held responsible.

 

• A bond only offers state minimum liability coverage and nothing else.  No medical coverage is offered, no uninsured motorist coverage is offered, and no comprehensive or collision coverage is offered.

 

• If you have your vehicle financed through a car loan, a bond will not work for you!  Companies and banks that do vehicle financing will require you to carry regular auto insurance, with comprehensive and collision coverage included in coverage.  As mentioned, a financial responsibility bond doesn’t offer this, which is why it won’t work for you.

Is it OK to carry two separate active policies, a regular auto insurance policy to insure my vehicle, and a financial responsibility bond to satisfy my SR22 requirement?


Yes.  This is perfectly fine to do.  However, nine times out of 10 this is the more expensive way to handle the problem.  More often than not, having a regular auto insurance policy with an SR22 attachment together on one policy comes out cheaper for the vast majority of people.  However, there are a few rare exceptions where it makes sense, and comes up cheaper to carry two separate policies.  This is especially true for people who own their own home, have a good driving record and a good credit record.  But for just about anyone else, it’s normally cheaper to carry everything on one policy.


Finding the best rate. 


Not all auto insurance companies will file an SR22 filing.  There are other companies who will file an SR22, but will charge you a fortune to do so.  That's why it's important to find the right auto insurance companies that are SR22 friendly.


The best way to shop around for any type of auto insurance that needs an SR22 filing is to simply go through an independent insurance agent who specializes in high risk insurance.  These agents have several companies that go easy on drivers who need SR22 filings.  Independent agents will be happy to do the shopping around for you.  They can set up coverage that is right for you and find the company with the lowest price for the coverage levels you need.  Just because you need an SR22 doesn’t mean you need to pay a fortune!



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Differences Between an Ohio Financial Responsibility Bond and a Named Operator Auto Insurance Policy