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Electronic Proof of Insurance Being Embraced by States

Legislation that would allow consumers the option of using electronic proof of insurance is moving through the states...
February 5, 2013

Legislation that would allow consumers the option of using electronic proof of insurance is moving through the states. Several states, including AL, AZ, CA, CO, ID, LA, MN, MT, OK, NV, SC, TX, UT, Washington, D.C. and WY have adopted, or are in the process of adopting, legislation and regulations that give insurance companies the flexibility to offer policyholders a variety of ways to show proof of coverage. The paper card will still be available as proof of coverage, but now consumers will have other options such as smartphone applications or a PDF copy.

State representative and PIA member Mary Czaja introduced similar legislation in Wisconsin and other states, such as Georgia and Kentucky, are taking a look at this as well. PIA National, through our Business Issues Committee (BIC), is working with our affiliates that are interested in pursuing this effort. Many states verify automobile insurance coverage by collecting data from insurers, putting it in a database and comparing it with registered automobiles. Other states verify proof of insurance at registration, but unscrupulous drivers may cancel the policy after they’ve received their proof of insurance card. To combat this problem, states like Ohio send out random requests for proof of insurance from registered drivers. Eventually, a modernized nationwide system will work in real time with a database that insurance companies update electronically.