More and more states are pushing to allow their citizens to show proof of insurance electronically during traffic stops and registration, according to the Property Casualty Insurers Association of America (PCI).
PCI reports that the Idaho Senate Transportation Committee unanimously approved a measure (SB 1319) last week giving drivers the flexibility to show proof of coverage electronically with a smart phone. Similar bills are under consideration in Arizona, California, Mississippi, and soon Maryland.
“State legislators and regulators are beginning to update laws to recognize the increasing prevalence of technology by allowing insurers to provide policyholders with electronic ID cards. That little piece of paper will still count, but it will no longer be the only option motorists have to show they have auto insurance,” says Alex Hageli, PCI’s director, personal lines policy. “Electronic display of proof of insurance will save insurance companies the cost of printing and mailing ID cards to policyholders. It will also save law enforcement and court personnel time and money because they will no longer need to process tickets written to drivers who had coverage but forgot to put that little piece of paper in the car.”
All states except New Hampshire and Tennessee require drivers to carry liability insurance to cover other drivers in an accident. Drivers must show proof of insurance coverage at each one of the, according to PCI, tens of millions of stops per year.
“Legislation like the measures under consideration in Arizona and Idaho are a win-win situation because insurers and customers retain the flexibility to use paper ID cards or use an electronic device. It is all about having choices,” says Kenton Brine, PCI, AVP.
Legislation and regulations for allowing electronic proof of insurance for registration also exist in Alabama and Colorado.
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