Ohio House Bill 278’s Effect on Auto Insurance

House Bill 278 amends numerous sections of the Ohio Revised Code in order to make changes to the law governing automobile insurance policies. It increases the minimum amounts required for financial responsibility, and makes it unfair for insurance businesses to charge excessive, inadequate, or unfairly discriminatory premium rates based on the motorist’s place of residence. This bill also reduces the minimum policy period from two years to one year, among other things.

Below we have listed the key provisions of House Bill 278 which went into effect March 22, 2013 and is effective on new or renewed auto insurance policies on December 22, 2013. We urge readers to become familiar with this as it may affect them in the future if they are involved in an automobile accident.

Key Provisions: House Bill 278

  1. HB 278 increases the minimum Financial Responsibility (FR) limits in Ohio
  2. The minimum policy period for auto insurance is reduced from two years to one year and has further parameters defined for cancellation of policies
  3. The practice of insurance companies to charge excessive or discriminatory premium rates for private passenger auto insurances based on the insured’s residence location is now considered unfair and deceptive
  4. No auto insurer is able to deny intra-family claims involving wrongful death
  5. The insurance company is able to obtain a salvage certificate of title on total loss vehicles in certain circumstances when the insurance company paid a total loss claim and the claimant doesn’t provide the certificate of title
  6. 6. Establishes a committee to re view and evaluate the feasibility of providing auto insurance policy information to the Ohio Registrar of Motor Vehicles for the purpose of identifying potentially uninsured motorists

Auto Insurance in Ohio

The above provisions affect the compensation and settlement process if one is involved in an accident and should be understood by motorists.

The lawyers at our office also find it extremely important for motorists to carry their own uninsured/underinsured coverage. As we have explained in previous articles on our website, uninsured motorist’s coverage can make a world of difference in a settlement amount of an accident. The additional charge that is on your insurance is very minimal, but the return in the event that you are involved in an accident with an uninsured or underinsured motorist is extreme.

We recommend having a lawyer look over your auto insurance policy because they may find ways for you to have coverage that only costs a minimal amount per month, but can mean the difference of hundreds of thousands of dollars if you are in an accident.

Read more about why uninsured/underinsured motorist coverage is important.

If you have questions about House Bill 278 or wish to speak to an attorney about your auto insurance policy, feel free to call 800.637.8170. Our lawyers are happy to guide you through the purchasing of auto insurance and to anwer the questions you have. We also recommend ordering our free book, The Ultimate Guide to Buying Car Insurance in Ohio to have as a reference.


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