Insurance verification system

When a driver is stopped by law enforcement they are usually asked to show their driver’s license and proof of insurance.

Sponsored by Rep. Joe Hoppe (R-Chaska), HF1323 would direct the Department of Public Safety to develop an online auto insurance verification system that would allow law enforcement personnel to verify a driver who has been pulled over has insurance on the vehicle in use.

The bill was held over Jan. 30 by the House Transportation Policy and Finance Committee. A companion, SF752, sponsored by Sen. Gary Dahms (R-Redwood Falls), awaits action by the Senate Commerce and Consumer Protection Committee.

“It does nothing to address infraction penalties,” Hoppe said. “We’re just talking about the framework of how we would set up a system.”

Insurance Federation of Minnesota President Bob Johnson said the bill is put forth by the Insurance Industry Committee on Motor Vehicle Administration, a group that works with motor vehicle administrators to get the best insurance coverage verification systems. “What this bill represents is the best current effort to move to a web-based or online verification system,” Johnson said. He said 10 states have implemented the system and six or so others are in a “testing mode.”

Rep. Mike Benson (R-Rochester) wants to ensure the technology could not be used for cause, whereby an officer first verifies a vehicle is uninsured before pulling someone over. Hoppe said that is not the bill’s intent, adding there are more than a hundred other reasons to get stopped.

“Our goal here is not anything nefarious,” Hoppe said. “It’s to make sure that people have auto insurance and we have safer highways and byways.”

No fiscal note was available; however, Hoppe suggested potentially using some of the fines collected to maintain the verification system and have the upfront development expense come from elsewhere. He also said the timing would be right as the department is implementing a new database system.

“Making sure people have insurance and are insured is not a bad thing for us to be striving for,” said Rep. Mike Nelson (DFL-Brooklyn Park).