Texas Department of Insurance and Vehicle Notices of Default from Texassure
The Texas Department of Insurance (TDI) announced that, beginning in the spring of 2010, notices of default will be sent to owners of uninsured vehicles. The advisory will provide a warning to those driving without insurance: the situation will need to be corrected immediately. The notice will list potential penalties for driving without insurance and warn repeat offenders that they face suspension of driving privileges.
Notices of default are sent as part of the TexasSure uninsured driver verification program passed by the 79th Legislature. The law requires insurers to submit your active policyholder information to the state, which then matches Vehicle Identification Number (VIN) submitted with the VINs contained in the TxDMV registered vehicle database. Of the VIN numbers submitted by insurers, 99 percent were successfully matched against the vehicle registration database.
One in four is uninsured
Although TDI will not release specific statistics, it is estimated that at least one in four vehicles on Texas roadways is currently uninsured. In June 2008, access to the TexasSure program was provided to DPS officials and all 254 county tax offices. The show was an instant hit. “Motorists have overwhelmingly adopted the TexasSure database, especially given its 99 percent success rate of matching vehicles to their insurance coverage,” said Rebecca Davio, Director of Vehicle Titles and Registration for TexasSure. TxDMV. “It’s proving to be a tremendous resource in identifying the uninsured.” Currently, notices are mailed to the one percent of policyholders whose insurer reported coverage, but their VIN number could not match the current vehicle registration.
Continuous monitoring of uninsured vehicles
“Both insurance agents and the citizens of Texas have long awaited this moment.” says Christine Huddleston, president of the Alliance of Insurance Agents of Texas (AIAT). The AIAT played a significant role in the approval and implementation of the TexasSure program.
Law enforcement agencies across our state have praised the system and appreciate the ability to verify if a vehicle is insured just by checking its license plate number. However, keeping the uninsured from getting behind the wheel in the first place has always been our top priority. These advisories will serve as a proactive approach to reducing the number of uninsured drivers and we commend TDI for all their efforts in getting us to this point.
TDI has informed auto insurers that notices of default will begin in the spring of 2010. All registered vehicles will be tracked on an ongoing basis to monitor their insured status. After a vehicle is listed as uninsured for nine (9) consecutive weeks, a default letter will be sent to the owner of record.
Insurance agents, are you ready to handle the new business?
“Agents need to be prepared. It will be the 1980s again.” says Mary Ann Hooten, Territory Manager for GAINSCO Auto Insurance. Mary Ann was working for an insurance agency in 1982 when the mandatory insurance law was first passed in Texas. “Our phones were ringing off the hook every night until midnight. We had to turn the phones off at night, even though they were ringing, because we just couldn’t handle any more business.”
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