American Property Casualty Insurance Association: Illinois Successfully Launches Electronic Auto Insurance Verification System

Chicago, Illinois, September 30 (TNSOps) – The American P&C Insurance Association issued the following press release:

Illinois’ The new electronic insurance verification system identified more than 2,700 vehicles that did not have the minimum insurance coverage required by the state as of the date of September 2021.

“The Illinois electronic insurance verification system is off to a good start, ”said Alex Hageli, Director, Automotive, Electronics, Specialized Lines and Legal Counsel for the Policy, Research and International Division for the American P&C Insurance Association (APCIA). “We are happy to see Illinois access an online electronic system as part of their efforts to reduce the number of uninsured motorists on the streets. This has long been a problem in Illinois and the new system could, by streamlining the insurance verification process, impact costs for motorists. “

In the past, Illinois drivers could evade coverage requirements by purchasing insurance to register or renew their vehicle registration, then quickly cancel the policy for a full refund. Now it will be much more difficult to do without insurance in the state of Illinois.

In the old system, the Secretary of State (SOS) would send postcards to a group of randomly selected registered vehicle owners asking for information about their insurance policy. It was a manual and paper-intensive process. The Secretary of State’s office would then manually confirm coverage with the insurer. The SOS had the power to suspend the vehicle’s registration and impose a fine on drivers who did not return the card or provide policy information. Once the driver provided the necessary information, the suspension would be lifted.

The new electronic system will eliminate postcards and perform insurance checks without the driver having to act. It will also allow the SOS office to verify more records in a more efficient and cost-effective manner. When there is no match between the registered vehicle and the insurance, the SOS office will notify the driver and tell them the necessary steps to verify that there is insurance on the vehicle. To ensure that drivers have proper insurance, the system will check coverage twice a year.

In 2019, it was estimated that nearly 12% of Illinois the drivers did not have insurance. According to the Insurance Research Council (IRC), insured drivers paid, on average, about $ 78 per vehicle insured in 2016 for insurance protection against faulty drivers who are uninsured or whose insurance is insufficient.