Car Dealers Selling Insurance? What's Legal?

April 14, 2015

After getting complaints that new-car buyers are being led to believe they must purchase auto insurance from an agency affiliated with their auto dealer, OIA developed a legal brief to explain the facts to agents. We also created resources you can give to consumers to clear up confusion about which coverages one is required to buy from the dealer and which are optional.

Background: auto-dealer affiliated insurance agencies

Some salespeople at auto dealers that have opened or acquired insurance agencies are leading consumers to believe that they must purchase insurance from the dealer-affiliated insurance agency in order to purchase the car.

Insurance agencies affiliated with another business, whether banks, auto dealers, securities firms or other businesses, have been an ongoing issue for many years. The state legislature, U.S. Congress, Ohio Supreme Court and U.S. Supreme Court all passed laws and issued opinions on what's legal and what isn't.

OIA's Advocacy Team created this legal brief to educate agents.

In addition, consumers and agents may file complaints with the Ohio Department of Insurance (ODI) if they believe a violation of our insurance laws is occurring.


Help your clients by spreading the word that they should consult you before car shopping. Remember you can use these resources as if you wrote them yourself.

Print our consumer flyer or email this PDF to clients.

Download this article (a Microsoft Word version) to copy to your website or blog.

Social media posts
Just copy and paste to your favorite social media -- the posts link to our consumer flyer:
- Get the facts about what options you really have to buy at the car dealer.
- Know your rights at the auto dealer before you go car shopping.
- Car shopping is stressful enough. Know your rights about the options car dealers may try to sell you.
- Do I have to buy auto insurance for my new car from the auto dealer's insurance agency?

Also see:


Get connected

Ohio Insurance Agents Association, Inc.
600 Cross Pointe Road
Gahanna, OH 43230

Toll-free: (800) 555-1742
Phone: (614) 552-8000
Fax: (614) 552-0115

Media Inquiries:
Breanne George, ext. 1502