The Pennsylvania House of Representatives has unanimously approved a bill introduced by state Rep. Kerry Benninghoff (R-Centre/Mifflin) aimed at improving the process for consumers who change auto insurance carriers.
Benninghoff highlighted the challenges faced by drivers when switching insurance, stating, “No one enjoys receiving a letter threatening suspension of their vehicle registration due to insufficient auto insurance coverage. For far too many Pennsylvanians, switching insurance carriers when purchasing a new vehicle or simply shopping for better coverage has become a painful experience, and it’s a situation that is easily avoidable.”
Currently, drivers who cancel their car insurance policy within six months from the original issue date must report the cancellation to PennDOT. However, there is no requirement to notify PennDOT when a new policy is purchased. This gap can lead to drivers receiving notices about potential registration suspension unless they provide proof of insurance.
Benninghoff explained, “The alleged lapse triggers a notice that the driver’s vehicle registration may be suspended unless proof of insurance is provided. My offers an easy solution which would implement an online verification system (OLV) for automobile insurance coverage which doesn’t rely on conventional mail.”
The proposed online verification system would require mandatory reporting of policy information by insurers and allow PennDOT and law enforcement real-time access to verify coverage. Benninghoff noted, “It involves a searchable database which is accessible to PennDOT and law enforcement that will allow real-time verification of insurance coverage. The added benefits address the problem of uninsured motorists and prevention of counterfeit insurance cards.”
Seventeen other states and the District of Columbia have already adopted similar systems.
House Bill 710 now moves to the state Senate for consideration.
Questions regarding this legislation can be directed to Benninghoff’s Bellefonte district office at 814-355-1300 or his Reedsville office at 717-667-1175.
