HOWELL SENATE BILL 158 ACHIEVES FINAL PASSAGE
Bill provides clearer guidelines around unnecessary, hidden costs when purchasing a vehicle
FRANKFORT, Ky. (March 25, 2026)— Senate Bill (SB) 158, sponsored by Senate Agricultural Committee Chair Jason Howell, R-Murray, achieved final passage and will be delivered to the governor for signature.
SB 158 will protect Kentucky consumers by establishing clear standards for optional financial products offered when buying a vehicle.
The measure ensures that add-on products such as debt cancellation coverage or vehicle value protection plans, remain strictly optional for consumers. These products must now be clearly disclosed and priced separately from loan interest, preventing lenders or dealers from making them a condition of financing or completing a vehicle sale.
A House Committee Substitute strengthened the bill by clarifying that vehicle value protection agreements are not insurance products and must be disclosed. The updated version also brings these agreements under enforcement provisions of the Kentucky Consumer Protection Act and establishes additional regulatory standards to ensure transparency and accountability.
“Buying a vehicle is already a significant decision, and this bill helps make that process clearer and less stressful by ensuring straightforward pricing, full disclosure and the freedom to choose what’s right for each individual without hidden costs or unnecessary extras,” Howell said. “SB 158 is about transparency as a consumer protection measure to keep Kentuckians from being pressured into additional costs when they are already making a major purchase.“
The legislation also creates a new regulatory framework for personal property insurance, including limits on coverage, consumer disclosure requirements, and oversight by the Kentucky Department of Insurance.
“This measure puts common-sense protections in place for consumers,” Rep. Matt Lockett, R-Nicholasville. By setting clear standards for optional vehicle financial products, we help people manage risks from wear, damage, or unexpected costs while making sure these products are fair and transparent.”
The bill establishes consistent standards for contracts and will apply to all new agreements beginning Jan. 1, 2027.