American Property Casualty Insurance Association: Illinois successfully introduces electronic verification system for auto insurance


Targeted news service (press releases)

Chicago, Illinois, 30. September (TNSOps) – The American Property Casualty Insurance Association issued the following press release:

Illinois’ new electronic insurance verification system identified more than 2,700 vehicles that did not have minimum government-required insurance coverage September 2021.

“The Illinois The electronic insurance verification system has got off to a good start, “said Alex Hageli, Director, Personal Auto, Electronic Issues, Specialty Lines & Counsel for the Policy, Research & International Division for the American Association of Property and Casualty Insurance (APCIA). “We look forward to seeing you Illinois use an online electronic system to reduce the number of uninsured motorists on the roads. This has long been a problem in Illinois and the new system could have an impact on drivers’ costs by streamlining the insurance review process. “

In the past, Illinois Drivers could bypass coverage requirements by purchasing insurance to register or renew their vehicle registration and then quickly canceling the policy for a full refund. Now it’s getting a lot harder in the state to do without insurance Illinois.

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 Illinois Drivers were not insured. According to the Insurance Research Council (IRC), the insured drivers paid an average of approx. $ 78 per insured vehicle in 2016 for insurance cover against drivers who are not at fault or who are insufficiently insured.

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