Maryland’s Online Insurance Verification Database to Change

The idea of having an online auto insurance verification database is catching on, and Maryland is no exception. The Maryland Vehicle Administration will now essentially allow insurance carriers to keep state departments in the loop instantly. Effective in October, using their digital format will be obligatory.

While insurance companies could e-mail or otherwise report policy changes, they will now need to use the system instead. This will be useful in determining which Maryland drivers have lapses in coverage, and are driving without insurance. So, policy-related changes will be reported daily, like lapsed coverage, new policies, policy changes, and terminated policies.

Consequences of Uninsured Driving

Drivers found driving without the minimum levels of auto insurance required by state will meet with certain fees or penalties. The severity of the penalty will be determined by how long the driver went without insurance. First-time Offenders will be charged with fees ranging from $175 to $2,525, and a registration suspension.

“Policies with lapsed coverage will be flagged by the electronic system and lead to suspension of vehicle registrations. Drivers with those policies are required to return “all evidences of that registration” or face license suspension. According to 2009 data from the Insurance Research Council, Maryland has the 16th–highest rate of uninsured drivers in the U.S., with almost 15 percent of drivers lacking coverage.”

Several other states have implemented their own online insurance verification databases as well. It is an efficient way to make sure that drivers comply with their state’s minimum auto insurance requirements. Not only is it irresponsible to drive without auto insurance, it is against the law.

Auto insurance insulates policyholders against damages sustained by car accidents, and pays for damages they cause when they are at fault. This database system will reduce the number of uninsured drivers out there. The consequences of this are that uninsured motorist coverage will likely become less expensive, since there is a smaller risk of being in an accident with an uninsured driver.

Now is a great time to familiarize yourself with MD auto insurance requirements, and make sure you have the necessary levels of coverage to drive in your state.

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