American Property Casualty Insurance Association: Illinois successfully introduces electronic verification system for auto insurance
Targeted news service (press releases)
In the past,
Under the old system, the Foreign Minister (SOS) sent postcards to a group of randomly selected registered vehicle owners asking for information about the insurance policy. This was a manual and paper-intensive process. The foreign minister’s office would then manually confirm coverage with the insurer. The SOS had the power to suspend registration of the vehicle and fine drivers who did not return the card or provided policy information. As soon as the driver provided the necessary information, the block would be lifted.
The new electronic system eliminates postcards and carries out the insurance check without the driver having to intervene. In addition, the SOS office can check more registrations more efficiently and cost-effectively. If there is no match between the registered vehicle and the insurance company, the SOS office will notify the driver and explain the steps to take to verify that the vehicle is insured. To ensure drivers have adequate insurance, the system reviews insurance coverage twice a year.
In 2019 it was estimated that nearly 12 percent of the