OAI: Indiana Auto Insurance Bill Would Help Identify Uninsured Drivers

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The bill would require drivers who have their policies canceled to let state officials know how they plan to become financially responsible

A bill being considered by Indiana lawmakers that would require insurers to notify state transportation officials when they cancel private auto policies could make it more difficult for residents to skirt the state’s mandatory coverage requirements, according to Online Auto Insurance (OAI).

The proposed legislation should be of interest to Hoosier State residents who are having difficulty keeping up with payments on their policies or are planning on buying a no down payment auto insurance policy in order to register a vehicle and then canceling it once registration is in place.

Like most states, Indiana requires that motorists purchase a minimum amount of liability insurance to pay for any damages they may cause behind the wheel. State law mandates that drivers carry enough coverage to pay for up to $25,000 in bodily injury to one person, as much as $50,000 per accident and up to $10,000 in property damage.

Source: http://www.in.gov/idoi/2579.htm#6

A bill currently before a state Senate committee would require that insurers send cancellation notices within 10 business days to policyholders whose coverage is being cut off and to the state Bureau of Motor Vehicles.

The recipients of these notices would then have 20 days to inform the bureau of how they intend to satisfy the state’s financial responsibility requirements going forward.

State officials would be allowed to suspend the vehicle registrations of drivers who get such notices and do not respond to the bureau within 20 days.

With the economy still sluggish, many people have had a hard time keeping up with monthly premiums. But OAI points out that, while payments can be expensive, the cost of flouting state coverage requirements can be far greater.

OAI advises consumers in Indiana and other states to make sure they have coverage in place before they get behind the wheel.

To learn more about this and other safety and car insurance issues, readers can go to http://www.onlineautoinsurance.com/pay-monthly/car-insurance-no-down-payment/ where they will find informative resource pages and a helpful rate-comparison generator.


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Gregor McGavin
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