The Texas Department of Insurance (TDI) announced that as early as Spring of 2010, non-compliance notices will be mailed to owners of uninsured vehicles. The notice will provide a warning for those driving uninsured – the situation will need to be corrected closest. The notice will list the possible fines for driving uninsured and advise repeat offenders they confront suspension of driving privileges.
The non-compliance notices are going out as part of the TexasSure Uninsured Motorists Verification program passed by the 79th Legislature. The law requires insurers to submit their active policyholder information to the state, who in turn matches the submitted means Identification Numbers (VIN) with the VINs contained in the registered means database at TxDMV. Of the VIN numbers submitted by insurers, 99 percent were successfully equaled to the means registration database.
One in Four are Uninsured
While TDI will not release specific statistics, it is estimated at a minimum, one out of every four vehicles on Texas roads is currently not insured. In June of 2008, access to the TexasSure program was provided to DPS officers and all 254 county tax offices. The program was an immediate hit. “Motorists have overwhelmingly embraced the TexasSure database, especially given its 99 percent success rate of matching vehicles to their insurance coverage,” said Rebecca Davio, TxDMV’s Director of means Titles and Registration. “Its proving to be a tremendous resource for identifying those without insurance.” Notices are currently being mailed to the one percent of policyholders whose insurer reported coverage, in addition their VIN number was unable to be equaled to a current means registration.
current Monitoring of Uninsured Vehicles
“Texas insurance agents and citizens alike have long awaited this time.” comments Christine Huddleston, President of the Alliance of Insurance Agents of Texas (AIAT). The AIAT played a meaningful role in the passage and implementation of the TexasSure program.
Law enforcement throughout our state have praised the system and appreciate the ability to verify whether a means is insured by just running their license plate number. However, it has always been our top priority to prevent the uninsured from getting behind the wheel in the first place. These notices will serve as a proactive approach in reducing the number of uninsured drivers and we commend the TDI for all of their efforts in getting us to this point.
TDI advised auto insurers the non-compliance notices will begin in Spring of 2010. All registered vehicles will be tracked on an current basis to monitor their insured position. After a means is listed as uninsured for nine (9) consecutive weeks, a letter of non-compliance will be mailed to the registered owner.
Insurance Agents, Are You Ready to manager the New Business?
“Agents need to be prepared. It is going to be the 1980s all over again.” says Mary Ann Hooten, a Territory Manager for GAINSCO Auto Insurance. Mary Ann worked for an insurance agency in 1982 when the mandatory insurance law initially passed in Texas. “Our phones rang off the hook every night until midnight. We had to turn the phones off at night, already though they were ringing, because we simply could not manager any more business.”
Insurance Technologies Corporation offers four meaningful software packages to insurance agents to generate leads, decline time quoting and binding, and streamline customer service processes. Now is the time to address your automation needs so you are prepared for the New Year.