Youngstown Daily Legal News

Bill would limit money uninsured drivers could collect after accidents

TIFFANY L. PARKS
Special to the Legal News
Published: November 9, 2015

The sponsor of House Bill 279 has described the proposed legislation as an important component to reducing uninsured drivers.

Known as the Responsible Driver Protection Act, the bill would prohibit a driver who fails to maintain proof of financial responsibility from suing to recover damages for noneconomic loss sustained as the result of an accident while operating a motor vehicle unless certain conditions apply.

“Driving an automobile is a privilege and with any privilege there comes responsibility,” Rep. Michael Henne, R-Clayton, said.

“Ohio, like all states, has a financial responsibility law, if you drive a motor vehicle you must carry minimum liability insurance to protect the injuries of those you might hurt.”

Even with the legal requirements, Henne said there were 90,000 automobile accidents in Ohio involving non-insured drivers.

“HB 279 will strengthen the laws regarding driving without insurance. If a driver is driving without the required minimum liability coverage then they will no longer be able collect non-compensatory damages,” he said.

Such motorists would still be permitted to collect damages for damaged property, medical bills and loss of wages.

“Because people do make mistakes and occasionally people are late on their insurance premiums, we have allowed the first 30 days of being uninsured before this provision is applied,” Henne said.

“We have a legal system to protect the innocent and punish the guilty. These drivers who choose not to participate in this legal system by not purchasing the required minimum limits of liability protection for the people they may injure will no longer receive the full benefits of that very system.”

In addition, HB 279 would adjust penalties for driving without insurance.

For a first offense, drivers would be subject to a fine of no more than $250 and a six-month suspension which would be waived if the driver brings proof of financial responsibility since the violation to the hearing.

For a second offense in a five-year period, drivers would be subject to fines up to $500 and a 12-month suspension that could be waived.

A third offense within five years, would yield a fine up to $500 and a 12-month suspension.

“A common thread among states which have done a much better job reducing the uninsured motorists on their roads is higher penalties for driving without insurance,” Henne said.

Similar bills have been passed in 13 other states and the National Conference of Insurance Legislators has passed a resolution supporting measures such as HB 279.

“An uninsured driver on Ohio roads is a serious problem and is getting worse. For many, it is easier to just pay the penalty when and if they are caught rather than follow the law,” Henne said.

“HB 279 makes the decision a little more difficult considering what they have to lose and what it will cost them.”

Henne said uninsured drivers are not innocent victims.

“They choose to ignore the law. They choose not to participate in a legal system designed to protect everyone and they should not receive the full benefits of that legal system,” he said.

Tom Schneider, owner of Schneider Insurance Agency, offered proponent testimony for the bill on behalf of the Professional Independent Agents Association of Ohio.

“HB 279 will protect responsible Ohioans from drivers who have chosen to drive without complying with our financial responsibility laws,” he said, adding that while the number of accidents involving drivers who have not complied with the state’s financial responsibility laws has increased significantly in the past 10 years, the number of accidents has gone down.

According to BMV data, in 2005 there were 358,590 crashes and 15,991 involving uninsured drivers.

In 2014 there were 282,368 crashes and 87,313 involving uninsured drivers.

“While the risk of being involved in an accident on our roads has decreased by 21 percent in that time period, the likelihood of being involved in an accident with an uninsured motorist has gone up by 550 percent,” Schneider said.

“The increase in uninsured drivers has burdened my clients when they have the unfortunate experience of being involved in an accident with them. They have acted responsibly by engaging their insurance agent to ensure they are complying with the law, protecting themselves and others against accidents. Our financial responsibility system is set up to ensure everyone contributes so you can get the benefit of having your automobile/property and person protected in the case of an accident.”

He said the system breaks down when drivers ignore or fail to comply with state standards.

“With an estimated 15 percent uninsured motorists our system is broken. We must do more as a state to protect responsible drivers by injecting fairness into our financial responsibility system,” Schneider said.

“HB 279 ensures accident victims, whether insured or uninsured are made whole, but if you are uninsured that is where your benefits stop. You are being made whole with your economic damages but are ineligible for noneconomic damages because you have chosen to break the law.”

The National Federation of Independent Business/Ohio has also endorsed the bill.

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