House Committee Begins Hearings on Bill to Establish Online Auto Insurance Verification

COLUMBUS—State Representatives Cindy Abrams (R-Harrison) and Jack Daniels (R-New Franklin) yesterday provided sponsor testimony before the House Transportation Committee on House Bill 678, commonsense legislation to establish a real-time, online auto insurance verification system in Ohio, holding uninsured drivers accountable. 

House Bill 678 follows a model established by the Insurance Industry Committee on Motor Vehicle Administration (IICMVA), also used by neighboring states such as Kentucky, Indiana and West Virgina. Key provisions of the legislation are as follows: 

• Requires the Ohio Bureau of Motor Vehicles (BMV) to create and manage a real-time, online auto insurance verification system;
• Requires insurance companies to work with the Registrar by providing and updating accurate insurance information to be used by law enforcement and the BMV;
• Requires anyone identified as uninsured to respond to the Registrar’s notice by confirming they have insurance, no longer own the vehicle, or qualify for an existing exemption;
• Allows the Registrar to impose civil penalties on individuals who fail to respond or provide proof of insurance;
• Authorizes the BMV to issue “Blackout” license plates for $40 to help offset the cost of the program; and
• Requires the Registrar and deputy registrars to deny vehicle registration or renewal if proof of insurance is not provided.
   

“We continue to see insured drivers being penalized as the result of uninsured drivers,” said Abrams. “It is a privilege to drive and part of that privilege is making sure you are following the necessary laws related to driving, including having insurance.”

“This bill simply ensures Ohio’s insurance requirement is actually enforced,” said Daniels. “As a former trucking company owner, I’ve seen the cost of uninsured drivers firsthand. H.B. 678 protects responsible Ohio drivers and businesses by bringing accountability to our roads.”

According to the Insurance Research Council, roughly eighteen and a half percent of motorists in Ohio are uninsured.

House Bill 678 awaits further consideration by the House Transportation Committee.