Mobile, AL (WiredPRNews.com) Alabama senators have voted to approve the establishment of a car insurance verification system for the state that would make it easier to identify residents who flout the compulsory coverage laws. Law enforcement officers and state workers will be able to obtain instant proof of auto insurance status by accessing the online database when they stop drivers for traffic violations or process registration for a vehicle.
All drivers in the state are required to carry minimum levels of bodily injury and property damage liability coverage, but not all of them do.
A study released by the Insurance Research Council two years ago estimated that in 2007 about 1 in 4 motorists in the state were on the road in violation of the state’s financial responsibility law. The only states that had higher estimated proportions were New Mexico and Mississippi.
If the bill to establish the verification system passes the house and gets signed by the governor, a database will be set up in which insurers will submit and regular update policy data for their customers.
Those who are found to violate the state insurance law are subject to relatively stiff penalties. Violators can be fined up to $500 for a first offense and $1,000 for subsequent offenses.
Currently, Alabama law only requires drivers to sign a statement at the time of registration saying they are insured, and the state sends out random questionnaires to drivers throughout the year requiring that they provide proof of a policy to the DMV.
An electronic verification system could make this a much tighter process.
Whether or not the system is approved, drivers will still have to carry proof of a policy with them in their vehicles.
To learn more about getting covered and obtaining proof of coverage in any state, readers can go to http://www.onlineautoinsurance.com/proof/ where visitors will find informative resource pages and a quote-comparison generator that can help consumers quickly track down the lowest rates for a policy.