More than 20 states are expected to consider electronic proof of coverage bills or regulations in 2013, according to the Property Casualty Insurers Association of America (PCI).

“States are taking another step into the Electronic Age by changing their laws to allow drivers to show their insurance ID cards on their smartphones,” said Alex Hageli, PCI director, personal lines policy. “No longer will motorists be ticketed and have to take time off of work to go to court for driving without insurance just because they couldn’t find a current ID card in their car. This is such a common sense switch that will save everybody time and effort.”

In 2012, five states made the change to e-Card including: Arizona, California, Idaho, Louisiana and Minnesota. Alabama approved regulations allowing electronically displayed proof of insurance at both registration and during traffic stops. Colorado already has a regulation allowing electronic proof of coverage when vehicles are registered, and will consider legislation to expand it to traffic stops this year.

The states discussing e-Card proposals include: Arkansas, Colorado, Florida, Georgia, Hawaii, Indiana, Iowa, Kansas, Maine, Michigan, Missouri, Mississippi, Ohio, Oregon, Rhode Island, South Carolina, Texas, Utah, Washington, Wisconsin and Wyoming. Wyoming’s measure, SF 87 has already cleared the Wyoming State Senate.

“Electronic proof of coverage, or e-Card, is a win-win-win for consumers, insurers and state officials. Consumers are using their cell phones for more and more things. They want less paper and more online account features,” said Hageli. “These proposed laws will enable insurers to adapt to changing consumer behavior, and the courts win because the docket will be cleared up of individuals who had insurance but just didn’t have a current ID card. ”

PCI supports flexible proposals that are not mandatory and give both the policyholder and the insurance company a choice to offer electronic proof of coverage options.

Register or login for access to this item and much more

All Digital Insurance content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access