Posted on 26 Jul 2010
Insurers are urging the District of Columbia to modernize its auto-insurance information reporting methods.
Auto insurance companies that conduct business in Washington D.C. are required by law to submit information regarding their business activity to the Department of Motor Vehicles on a monthly basis. This is done to ensure that cars driven in the area maintain auto insurance coverage, officials say, although Washington D.C. still maintains a mid-range uninsured rate compared to the rest of the country.
Restructuring the delivery process of insurance information to operate via a web-based program, supporters say, will provide cost- and time-saving benefits for companies along with additional benefits to consumers.
“The web-services system provides greater privacy protections for data on insured motorists and substantially reduces the lag time between when information is submitted and when it is used for confirmation of coverage,” stated Micaela Isler, the regional manager of the Property Casualty Insurers Association.
Isler was speaking in front of the city council’s Committee on Public Services and Consumer Affairs, which is currently considering how the final structure of the mandatory reporting system will look.
Nevada, Oklahoma, Texas and Wyoming already have adopted electronic systems that share information between the DMV and insurance companies doing business in those states.
