Feb 22, 2008

Tracking Down Insurance Scofflaws

A new Texas law allows police officers to know immediately if a driver who has been pulled over has the required minimum insurance coverage. The law, which went into effect January 1, is aimed at detecting uninsured drivers and preventing them from presenting out-of-date or fraudulent proof of insurance.

Uninsured motorists are a nationwide problem, driving up the insurance rates of those of us who carry proper insurance. For example, an estimated 15 to 20 percent of drivers or four million vehicles in Texas alone don't have valid insurance. In the Lone Star state uninsured drivers face fines of $175 or more for a first-time offense, while other penalties include suspension of the driver's license and vehicle impoundment.

"Uninsured drivers pose a threat to every driver on the road. This program will reduce the number of uninsured drivers who put themselves and everyone else at risk," said Jon Diamond, president of SafeAuto, one of the insurance companies that supports the new law. "We pioneered the concept of keeping our customers legal for less and this law is simply an extension of that spirit."

The new database supporting the enforcement of the law was built using information supplied by insurers and is being developed by the Texas Department of Public Safety, the Texas Department of Insurance, TxDOT and the Department of Information Resources. Law enforcement officers will have immediate access to the database, which compares the vehicle information to the documentation held by the insurance company, instead of relying on the proof of insurance cards, which can be out of date, lost or invalid. To ensure that drivers' records remain valid, the law requires that insurance companies submit weekly updates to the database.