In the near future, I will be introducing legislation requiring PennDOT to establish an online verification system (OLV) for automobile insurance coverage.

Currently, when a driver cancels their car insurance within six months from the original issue date, the insurer is required to report the cancellation of the policy to PennDOT. However, there is no requirement for an insurer to notify PennDOT when a driver acquires a new car insurance policy. This causes PennDOT to send a written notice to those who have changed their policy that requires response with proof of insurance, or their vehicle registration will be suspended for 3 months. As I’m sure you are aware, it is all too common for constituents to never receive or misplace these notices from PennDOT for a multitude of reasons, which can lead to canceled registrations when no lapse occurred.

Given the numerous advances in technology over the past two decades, there has to be a more efficient process that ensures insurance coverage without relying on the mail system and burdening Pennsylvania motorists. It is time to bring PennDOT into the 21st century, which is why I will be introducing legislation requiring PennDOT to establish an OLV system for automobile insurance coverage, similar to the systems operated in 17 other states and the District of Columbia. The OLV system will essentially be a searchable database accessible to PennDOT and law enforcement that will allow real time verification of insurance coverage. The OLV system would be routinely updated through the mandatory reporting of policy information by insurance providers, which creates a more automated system where canceled policies and new policies can be matched, thus mostly eliminating the need for PennDOT to mail notices.

The OLV model is not only pro-consumer, but online verification also addresses the problem of uninsured motorists. For instance, Alabama reduced their uninsured motorist rate by 6.7% after adopting an OLV system. It should also be noted that the OLV system provides greater accuracy to law enforcement and DOT employees as they are able to directly verify coverage using data submitted by insurers versus reviewing insurance cards that can be counterfeited.

For all of the aforementioned reasons, I hope you will join me in co-sponsoring this important legislation that will provide a more effective, trustworthy, and cost-saving service to our constituents.
 

Statutes/Laws affected:
Printer's No. 3329: 75-1786(b), 75-3), 75-1)