California Gets Srious about uninsured drivers

Source: Schilling Online

As of Oct. 1, 2006, vehicle owners living in California without auto insurance could have their vehicle registrations suspended.

California dmv stats show that 1.4 million drivers have been convicted since 2001 for driving without proper insurance coverage, and 78,000 drivers were convicted for failing to have liability insurance when involved in a collision.

Senate Bill 1500 was signed back in 2004 by Gov. Arnold Schwarzenegger and this bill was designed to reduce the risk of economic losses sustained as the result of collisions involving uninsured motorists. SB 1500 requires the Department of Motor Vehicles (DMV) to notify a customer about possible vehicle registration suspension if their insurance company fails to provide proof of insurance within 30 days of a vehicle’s initial registration with the department, or within 45 days once DMV has been notified by an insurance carrier about a policy cancellation or change in coverage.

The initial provision of SB 1500, which took effect Jan. 1, 2006, requires that insurance firms doing business in California electronically report all private-use vehicle (except trailers, off-highway vehicles or boats) liability policies to DMV, both when a policy is issued and/or cancelled.

Once a auto registration has been suspended, customers must submit evidence of a valid vehicle insurance policy and pay a $14 reinstatement fee before a registration can be reinstated or renewed.