Tuesday, December 19, 2006
If you drop insurance, DMV knows
Motorists who thought they could pull a fast one by getting insurance to register their car and then canceling it better put the brakes on that strategy. A new law requires insurers to provide electronic notification to the state Department of Motor Vehicles when customers cancel their insurance.
The DMV is now sending notices to motorists who have let their insurance lapse. The notice will inform them that they have 45 days to reinstate their insurance or face having their car registration suspended.
The legislation was written by state Sen. Jackie Speier, D-San Mateo. Speier also wrote a law that requires motorists to provide proof of insurance when registering their vehicles or when pulled over by police.
Since that law took effect in 1997, the percentage of vehicle accidents involving an uninsured vehicle in California dropped from 24 percent in 1996 to 14 percent in 2003.
