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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2025 - 2026
Regular Session
MEMORANDUM
| Posted: | December 9, 2024 04:24 PM |
|---|---|
| From: | Senator Greg Rothman |
| To: | All Senate members |
| Subject: | Modern Auto Insurance Verification |
| I plan to introduce legislation requiring PennDOT to establish an online verification system (OLV) for auto insurance coverage. Currently, when a driver cancels their auto insurance policy within the first 180 days of initial issuance, the insurer is required to report the cancelation to PennDOT which in turn sends a letter to the individual seeking proof of alternative coverage. This process, which dates from the 1980s and relies on the U.S. Postal Service, has proven to be fraught with peril: Individuals either do not receive or do not respond to PennDOT’s letter, which results in a suspension of registration that takes time and money (a $500 reinstatement fee) to resolve. Keep in the mind, this is for cases where there has been no lapse in coverage. To alleviate this problem, we should utilize technology to make this process more efficient, without relying on the mail system or burdening Pennsylvania motorists. My legislation, a companion bill to last session's HB 2416 (Benninghoff), will require PennDOT to establish an OLV system for auto insurance coverage similar to the systems operated in 17 other states and the District of Columbia. The OLV system, routinely updated by insurance providers, will allow real-time verification of insurance coverage for PennDOT and law enforcement. This will eliminate the inefficient, burdensome, and often unnecessary process of mail notices. I hope you will join me in co-sponsoring this important legislation that will make government more efficient. |