Friday, December 27, 2002

Georgia motorists asked to verify information in auto insurance database

By JOHN MUNFORD
jmunford@TheCitizenNews.com

To crack down on auto insurance fraud, the Georgia Department of Motor Vehicle Safety is compiling an electronic database that will serve as proof of insurance.

But so far, 1.7 million vehicle owners throughout the state have yet to be added to the database, and the DMVS is trying to contact those people by mail asking them to check with their insurance company to make sure they have been added to the database.

Some insurance companies have not yet transmitted the electronic record that needs to be received by the DMVS, according to agency officials.

Beginning Feb. 1, information in the database will serve as proof of auto insurance, replacing the auto insurance information cards currently carried by drivers.

That's because previous studies have shown "a large number" of drivers purchase auto insurance only to receive the card, according to the DMVS. Once they do so, they cancel their insurance but keep the non-valid card in their possession to use as proof of insurance.

The database will allow law enforcement officers, county tax commissioners and the DMVS to quickly verify auto insurance coverage; it was required by legislation passed earlier this year by Georgia lawmakers.

The auto insurance card will still be important to keep to serve as proof of insurance when travelling out of state and in case of a traffic accident.

Motorists also are being asked to make sure the vehicle identification number on their tag registration card and insurance policy match. If not, it could cause the vehicle to appear as uninsured in the state database.

There are still some flaws in the system, which has been tested since June, according to the DMVS. Error rates on information from insurance companies have been as low as 1.5 percent and as high as 17 percent, the DMVS reports.

After Feb. 1, motorists will not be able to renew or transfer their vehicle registration in Georgia unless their insurance company has provided proof of insurance electronically to the state database. If necessary, the auto owner will be alerted of a problem with their data on the vehicle registration prebill which is mailed 30 days before the old decal expires.