The recent legislative accomplishments to reduce or eliminate debt-related driver’s license suspensions have, unfortunately, not addressed security suspensions or judgment suspensions. These are particularly harmful debt-related suspensions that can prevent low-income Ohioans from driving legally for decades. We are working to fix that.

What are Security and Judgement Suspensions?

Security suspensions and judgment suspensions are ways insurance companies try to collect money from drivers who do not have insurance. If an uninsured driver causes a car accident, the injured person’s insurance company may pay for the damage. The insurance company can then ask the Bureau of Motor Vehicles (BMV) to require the uninsured driver to pay a security deposit to cover the costs. If the driver cannot afford to pay the deposit or does not pay it, their driver’s license can be suspended for up to two years. The two-year suspension matches the amount of time the injured party usually must file a lawsuit. If the insurance company or injured person wins the lawsuit and the court orders the uninsured driver to pay money, the driver can face another suspension called a judgment suspension if they stop making payments. Judgment suspensions can last for many years — sometimes more than 20 years. In many cases, the only way to remove the suspension is through bankruptcy.

Are the Suspensions Effective?

• Security Suspensions: In each year from 2016-2020, over 100 times more dollars were newly assessed against drivers than were paid. In 2020, only .2% of the amount owed was paid.
• Judgment Suspensions: In each year from 2016-2020, about 4 times more dollars were newly assessed against drivers than were paid. In 2020, about 1.5% of the amount owed was paid.
  

We Are Working to Enact Legislation that Would:

1. Requires the written report of the accident to be submitted to the registrar of motor vehicles within 90 days of the accident (current law is within 6 months).
2. Change the threshold amount of personal injury damages required before a security deposit may be requested to be tied to the minimum insurance amount for personal injury and property damages.
3. Increases due process for people who face a potential security suspension by:
4. Extending the 30-day deadline to request a hearing to 60 days.
5. Allowing an individual to request a hearing by phone or email.
6. Allowing an individual to petition for limited driving privileges at during the suspension (currently not allowed by Ohio law).
7. Require BMV to deny a request for a security suspension if the party requesting the security is unable to prove there is a reasonable possibility of judgments in the amounts claimed.
8. Allow a person with a judgment suspension to cure the default (meaning the suspension is lifted and they resume normal installment payments) by:
9. Paying the total amount of missed payments to the judgment creditor;
10. Depositing with the BMV in the form of security three consecutive installment payments on time and in full;
11. Paying the entire judgment amount, or;
12. If judgment creditor agrees to waive the suspension.
13. Allow a person with a judgment suspension to apply for limited driving privileges.
14. Limit judgment suspensions to a maximum of 5 years