How Should States Handle Insurance Verification?

Many states are attempting to fight back against uninsured drivers by implementing auto insurance verification programs to try to lower insurance costs while increasing public safety and further encouraging people to seek cheap car insurance quotes.

2Section Name

3Section Name

While many states believe that these will be helpful policies, critics worry that they may cause more trouble than they’re worth

There are nearly 30 million uninsured drivers in America right now

Despite the fact that car insurance is not an optional expense for almost every driver in America.

Every state requires it, and in most cases, affordable auto insurance isn’t too hard to find, but according to estimates provided by the Insurance Research Council, uninsured drivers cost drivers $2.6 billion in insurance claims, and unfortunately, not all those hit by uninsured drivers are covered for their losses.

4Section Name

There are a handful of methods used to verify auto insurance

Two of the more common methods involve requiring auto insurance companies to report inactive, lapsed, or cancelled accounts and requiring drivers to present their insurance information if pulled over by a police officer

5Section Name

These two measures are implemented in every state, but approximately 12 states have taken verification a step further, consolidating insurance information and vehicle registry data for quicker reference and verification

6Section Name

Texas is one such state, creating the car insurance verification database TexasSure. Jerry Hagins, an insurance officer working with the Texas Department of Insurance, has this to say about the TexasSure system

7Section Name

“The TexasSure database merges insurance policy data with auto registration data for all of the cars in Texas. It shows whether any given vehicle has a valid insurance policy. It’s available to our law enforcement and our county tax assessor offices, anywhere you would register a vehicle. It’s updated on a weekly basis.”

8Section Name

If the system finds a vehicle that hasn’t been paired with an insurance policy, the owner will receive a letter from the system, asking them to verify their insurance policy with TexasSure.

9Section Name

TexasSure has been accepted by both government officials and the media, but Ohio’s mail-based verification system has been the subject of some debate

In response to this, proposal HB71 has been brought to attention, which will replace Ohio’s current random mailing system with a system similar to TexasSure.

10Section Name

CONTACT US

Why not get a free Texas auto insurance quote today with A-Affordable?

11Section Name