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Wednesday, 07 October 2020 20:15

States Making New Efforts to Make Sure Drivers are Insured

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Drivers with insurance are more likely to have their vehicle repaired after an accident, so new efforts this year to crack down on uninsured motorists could be good news for shops in three states.

A new Arkansas law that went into effect in January requires a state agency to notify residents whose registered vehicles appear to lack insurance that they have been fined $100 for the lapse. If they don’t provide proof of insurance within 30 days, their vehicle registration can be suspended.

 

By the end of August, the state had mailed 179,126 such letters to Arkansas drivers.

 

The state hopes to reduce its rate of uninsured drivers from 16.6%, according to a 2017 estimate by the Insurance Research Council, to below the national average of about 13%.

 

Illinois, too, has rolled out a new auto insurance verification systems this year that will eventually conduct 16 million checks on vehicles a year in that state---versus 300,000 in the current program---though the pandemic and economic upheaval this year led regulators to put an indefinite delay on enforcement.

 

Insurers are already uploading policies to a system that twice a year checks each of the approximately 8 million car registrations in the state. A vehicle registration with no insurance match will be checked again in 30 days, after which the owner must provide proof of insurance or face suspension of the vehicle registration and a $100 fee to reinstate it.

 

In a preliminary test of the system, 12.5% of registered vehicles lacked insurance.


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