24 States Approve Electronic Proof of Auto Insurance Coverage

CHICAGO, June 6 — The Property Casualty Insurers Association of America issued the following news release:

It is getting a lot easier in many states to show proof of insurance coverage during a traffic stop. In what has become one of the hot insurance-related legislative trends, 17 states passed laws this year allowing drivers to show proof of insurance using a smart phone. This brings to 24 the states that say “yes” to electronic proof of coverage, according to the Property Casualty Insurance Association of America (PCI).

“In just two years policy makers in nearly half the country have changed their laws to enable consumers to use their smart phone to show they have insurance instead of keeping that little piece of paper in the glove compartment,” said Alex Hageli, PCI director of personal lines policy. “It makes good sense to allow consumers and insurers to use increasingly ubiquitous technology to comply with the law.”

The 17 states to approve electronic proof of coverage laws in 2013 are:Alaska, Arkansas, Colorado, Georgia, Indiana, Iowa, Kansas, Kentucky, Maine,Mississippi, North Dakota, Oregon, Tennessee, Texas, Utah, Washington andWyoming. This list is likely to grow even longer in 2013 as legislation is awaiting signature by governors in Florida, Illinois, Missouri and Wisconsin. PCI is supporting legislation still moving in Michigan, Ohio and Pennsylvania.

“Increasing sales of tablets and other mobile devices are motivating consumers to want multiple communication platforms with their agent and insurer. The E-commerce trend is expanding and motivating other policy changes that will modernize insurance laws and ways of doing business,” saidKelly Campbell, PCI vice president for state affairs. “Three states have approved laws allowing electronic delivery of insurance documents, with five more states actively considering legislation during 2013 sessions. Electronic delivery of insurance documents will give consumers and insurers more choices and more flexibility in how policies are serviced. These laws are moving the interaction between customers and insurers away from the Pony Express and into the 21st Century.”