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House of Representatives
Session of 2017 - 2018 Regular Session


Posted: March 20, 2017 03:32 PM
From: Representative Madeleine Dean
To: All House members
Subject: Notification of New Auto Insurance Policy
In the near future, I will be re-introducing legislation amending Title 75 (Vehicles) of the Pennsylvania Consolidated Statutes to require automobile insurance carriers to notify PennDOT within 24 hours when a new insurance policy is adopted by a consumer. In addition, my legislation would allow PennDOT to request that an insurer notify the Department of all vehicles for which it is providing vehicle liability insurance on the date of the request.

Under current law, automobile insurance carriers are required to notify PennDOT when a policy lapses or is terminated, but not when new insurance has begun. When PennDOT receives notification from an insurance company that an individual’s insurance has been cancelled, PennDOT sends a letter to the individual requesting verification that a new insurance policy is in place. By law, if an individual does not respond to the letter—or fails to receive the letter—providing current insurance information, PennDOT is required to administer a three-month vehicle-registration suspension.

The current system often results in consumers who have recently changed insurance providers unknowingly driving vehicles with suspended registrations, which can result in fines, despite having had no lapse in coverage.

This legislation relieves the consumer’s burden of proving insurance coverage to the Department and, instead, requires the insurance carrier to provide notification when a new policy is started, similar to how an insurer notifies PennDOT when a policy lapses or is terminated.

This common sense process would result in fewer consumers unknowingly and unnecessarily driving vehicles with suspended licenses and also streamline PennDOT’s vehicle registration procedures.

I hope you join me as a co-sponsor of this important legislation.