Auto Insurance Industry News: States that Allow Electronic Proof of Car Insurance

Auto Insurance Industry NewsAccording to new data released by the Property Casualty Insurance Association of American (PCI), Illinois is the most recent in a list of 26 U.S. states which allow paperless electronic proof of car insurance via smartphones.

Technology and the law combined

As most people have this form of technology in place already due to smartphones and iPhones being ubiquitous, is makes sense to take car insurance to this medium. It seems that many states are realizing the benefit of allowing motorists to use their smartphones as a way of showing that they have valid insurance, versus presenting a piece of paper stored in their glove compartment.

Electronic Proof of Car Insurance Infographic (scroll down if you want to use it on your website)

Electronic proof in the event of a force majeure

It is thought that this method will be especially useful in the event of a natural disaster such as hurricane, storm or other emergency that causes a consumer to be displaced and potentially lose paper documentation. With the proof being electronic and held on a server’s website, a motorist will have a much easier time proving their insurance coverage when the time comes to make a claim.

More than half of the country uses paperless car insurance

This method is much more convenient and is growing in popularity – within the last two years, policymakers within almost half of the United States have amended their state laws to let consumers use their smart phones to proffer proof of insurance.

How does it work?

The idea is that consumers can have electronic copies of their essential car insurance documents stored on their insurance company’s website or some other secure online location such as through an encrypted app. If stopped and asked for documentation within any of the participating states, these consumers should be able to summon up the relevant proof via their phones. Six states so far have approved laws in 2013 that allow consumers to access their insurance policy through a website.

What is the cost benefit for me?

It is thought that paperless car insurance will help to lower quotes and save consumers money on their vehicle insurance by omitting the need for costly printed documentation.

Are their more states that plan to amend their laws?

Yes — Other states are soon to follow. Governors in Missouri and Wisconsin are currently in the process of legislation that will be signed in due course.  Four more states are considering passing laws to allow paperless electronic proof of car insurance.

A full list of the states which allow electronic proof as of August 2013 can be found below:

Name of state

Smartphone car insurance proof permitted?

Alaska

Yes

Alabama

Yes

Arizona

Yes

Arkansas

Yes

California

Yes

Colorado

Yes

Florida

Yes

Georgia

Yes

Indiana

Yes

Idaho

Yes

Illinois

Yes

Indiana

Yes

Iowa

Yes

Kansas

Yes

Kentucky

Yes

Louisiana

Yes

Maine

Yes

Mississippi

Yes

North Dakota

Yes

Oregon

Yes

Tennessee

Yes

Texas

Yes

Utah

Yes

Virginia

Yes

Washington

Yes

Wyoming

Yes

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