Ohio Senate Bill SB65

Ohio 2025-2026 Regular Session

• Introduced: 2/4/25
• Report Pass: 6/4/25
• Engrossed: 6/11/25

Caption

Revise product contracts, vehicle agreements, motor vehicle laws

Impact

The passage of SB 65 will significantly modify state laws concerning automotive financing and insurance. Notably, it creates provisions that allow for better consumer protections related to ancillary product protection contracts, which could benefit those purchasing motor vehicles. The requirement for all such contracts to include a reimbursement insurance policy ensures that consumers have recourse if the contract provider fails to meet their obligations. This, in theory, should foster greater confidence among consumers engaging in these transactions, ensuring that they are not left without protection in case of provider default.

Summary

Senate Bill 65 aims to revise the laws governing motor vehicle ancillary product protection contracts and vehicle value protection agreements in the state. The bill seeks to clarify definitions and requirements surrounding these contracts, which are designed to provide protection for consumers against excess costs associated with motor vehicle use, such as wear and tear. It explicitly states that such agreements are not considered insurance and outlines the obligations of contract providers to guarantee performance through reimbursement insurance policies. This change is intended to enhance consumer protection while providing clarity regarding financial responsibilities within automotive transactions.

Sentiment

The overall sentiment regarding SB 65 appears to be positive among legislators and stakeholders who emphasize consumer protection and the need for clear, enforceable contracts in the automotive sector. Advocates emphasize that these protections are essential for consumers who may face unexpected financial burdens related to the wear and tear of leased or purchased vehicles. However, there are concerns expressed by some who feel that the bill could also impose additional regulatory burdens on businesses offering these services, thereby increasing operational costs.

Contention

Notable points of contention include the debate on whether the requirements placed upon contract providers could lead to higher costs for consumers in the long run. While supporters argue that enhanced protections are necessary, opponents warn that increased regulation might lead to fewer options or higher prices in the automotive product market. Additionally, the distinction that these contracts are not insurance has raised questions concerning the adequacy of consumer protections provided by just a reimbursement insurance policy, creating a dialogue about the balance between regulation and market accessibility.