Online Insurance Verification System in Alabama
Several counties in Alabama are gearing up to begin dealing with the issue of uninsured drivers. They are beginning to test their Online Insurance Verification System, or OIVS, which was created in 2011. The measure has been lauded as very popular, as it got a nearly unanimous vote in Congress.
The problem of uninsured drivers is very real. Not only do these individuals cost others large sums of money when they are responsible for a crash, but they are also ramping up the cost of underinsured and uninsured motorist coverage, UIM and UM respectively. If there is a higher pool of people in the population without insurance, then it is riskier to write insurance policies that protect against these kinds of cases.
Insurance Verification System
TheNewsCourier states that nearly 22% of all drivers in Alabama don’t presently have liability insurance. This is what they are seeking to change with OIVS. It is projected to be fully implemented and operational by as soon as January 1, 2013.
Essentially the way that the system will work is that it will allow DMV officials to check for insurance coverage or lack thereof. When license plates are being renewed or issued, officials will be able to look up whether or not a given driver has sufficient coverage. If no coverage is found on the system or there is a lapse in coverage, it will be the responsibility of the driver renewing his or her license plate to provide proof of insurance before the new license plate is issued.
According to Greg Tucker, Limestone County License Commissioner, the new measures will lighten the load a bit on insured drivers, and at the same time crack down on those that don’t have insurance. Registration reinstatement will come at a cost.
First time offenders will need to pay a fee of $200.00 to reinstate their registration, while those who are second-time or repeat offenders will be required to pay a fee of $400.00. In addition, repeat offenders will also be penalized with a 4 month, mandatory, registration suspension.
Some relief on insurance premiums are expected for policyholders if the measure is successful in reducing the amount of uninsured drivers on Alabama’s streets.
Easy Accessibility
This new system will offer a significant advantage over the old way of verifying insurance. TheNewsCourier states, “The old method of insurance verification involved reviewing three months of state files that tag offices had to check against their own records. The new system will offer an active comparison.”
In addition to DMV officials having access to this information, officers of the law will as well. So, if drivers get stopped, they could be further penalized for not having insurance coverage. Even though this information is readily available through the computer, drivers are urged to carry proof of insurance with them anyhow.
Tucker says, “Now is the time to get insurance. When January hits, it’s going to cost you, depending on the citation.”
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