Auto Verification for Auto Insurance Will Soon Begin in Illinois – HB-2610
Illinois plans to automate verification of auto insurance to make sure that every vehicle on the road is covered, but the state has yet to have a database required for electronic new law mandatory verification.
The state will begin collecting funds to design and create the database. The funds are collected from a council of insurance companies created to reduce vehicle theft and insurance fraud.
Henry Haupt, the spokesperson for the Illinois Secretary of State’s office, said in a public statement that 75 cents will be taken from the council every year to fund the creation of the electronic database. Once the database is created, automated verification for car insurance will take place at random at least twice a year.
What Does new law HB-2610 Mean for Drivers?
The new law will eventually discontinue and nullify physical insurance cards, as your proof of insurance will be simply your license plate.
The Illinois Secretary of State will be working closely with every insurance company in the state to implement the new law. The new law will require all insurance companies to provide a list of all their covered drivers, along with other relevant insurance information, to the Secretary of State. All this information will be compiled into the electronic database. A database which keeps track of all the drivers covered with insurance and the amount of coverage each driver has.
Reducing Car Collisions
The new law (IL HB-2610) goes in line with the same goal of the recent price hikes of car insurances in Illinois: to reduce car collisions.
Versus all other US states, annual car insurance costs in Illinois are greatly influenced by your history of driving violations. For example, a DUI violation will raise your average insurance rate by 126 percent. In other US states, the average increase will only be 72 percent.
As a driver, it is your legal responsibility to have at least basic liability insurance when driving on public roads. According to the Department of Treasury, vehicle owners must have insurance limits of at least $25,000 BI (bodily injury) per person, $50,000 per occurrence, and $20,000 in property damage coverage.
The first and second time you get caught driving without insurance, you will receive a fine between $500 and $1,000. Your succeeding offense can result in the suspension of your driver’s license. If you cause a serious accident while uninsured, you can end up in jail for up to one year.
Competitive Car Insurance Rates in Illinois
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House Committee Amendment No. 2Further amends the Illinois Motor Vehicle Theft Prevention Act. Provides that the Director of the Secretary of State Department of Police (rather than the Director of State Police) shall be the Chairman of the Illinois Motor Vehicle Theft Prevention and Insurance Verification Council. Provides that the Secretary of State (rather than the Director of State Police) shall employ administrative, professional, clerical, and other personnel to effectuate the purposes of the Act. Provides that on or before January 1, 2019 (rather than April 1, 1992), the Council shall report annually to the Governor, General Assembly, and, upon request, to members of the general public on the Council’s activities in the preceding year. Provides that the Motor Vehicle Theft Prevention and Insurance Verification Trust Fund shall be administered by the Secretary (rather than the Director of State Police) at the direction of the Council. Provides that money in the Trust Fund shall be used, amongst other purposes, to pay the Secretary’s costs to administer the Council and the Trust Fund and to provide funding to the Secretary’s Vehicle Services Department for the creation, implementation, and maintenance of an electronic motor vehicle liability insurance policy verification program by allocating no more than 75% of each dollar collected for the first calendar year after the effective date of the bill and no more than 50% of each dollar collected for every other year after the first calendar year. Provides that the Secretary shall distribute the funds to the Vehicle Services Department at the beginning of each calendar year. Further amends the Illinois Vehicle Code. Provides that the development and implementation of an electronic motor vehicle liability insurance policy verification program shall be consistent with the standards and procedures of a nationwide organization whose primary membership consists of individual insurance companies and insurance trade associations. Provides that the program shall include a requirement that the Secretary may consult with members of the insurance industry during the implementation of the program, including, but not limited to, during the drafting process for adopting any rules that may be necessary to implement or manage the program and a requirement that commercial lines of automobile insurance are excluded from the program, but may voluntarily report insurance coverage to the State. Provides that an insurer identified by an electronic motor vehicle liability insurance policy program as insuring less than 1,000 vehicles per year shall be exempt from the reporting requirements of the program.
House Floor Amendment No. 3 Provides that the Illinois Motor Vehicle Theft Prevention and Insurance Verification Council shall make grants to deter and investigate recyclable metal theft and to law enforcement agencies to assist in the prosecution of recyclable metal theft.
See more status information about HB-2610 here.
