Lawmakers in Oklahoma’s House of Representatives will soon vote on House Bill 3115, by state Rep. Ron Peterson, which would create an online automobile insurance verification pilot program in Oklahoma.
“Online verification will eliminate the biggest loophole in state law – people with a verification form who have actually dropped their insurance coverage,” said Peterson, R-Broken Arrow. “Police will have an instant-check system available so uninsured motorists can’t escape notice.”
Under current law, drivers must provide only a paper insurance verification form when stopped by police. However, many drivers obtain that form by making an initial payment on insurance, then dropping the coverage once the form has been received.
The bill also implements a “no pay, no play” provision in state law that will prevent uninsured drivers from receiving large insurance awards if they are in an accident.
“If you are uninsured and in an accident that is the fault of another driver, your recovery would be limited to actual damages with no ‘pain and suffering’ award,” Peterson said. “The bill basically enforces the Golden Rule: Do unto others as you’d have them to unto you. If you want to enjoy the benefits of insured drivers, you should be one yourself.”
Actual damages would be limited to medical costs, property damage, and lost income.
Under the bill’s provisions, the police could also seize a driver’s license or remove the license plate from the car if a person is driving without insurance. Uninsured drivers would receive a citation and be allowed to drive home, but could not return to the road until they obtained coverage and recovered their license plate.
“If police remove the plate from your car, you will be clearly marked as an uninsured driver,” Peterson said. “That’s going to create a strong incentive to take care of your insurance problem.”
Under the bill, individuals caught selling fake verification forms would face a felony charge punishable by a fine of up to $10,000 and/or seven years in prison.
Individuals caught using a counterfeit form would face fines of $25 to $250 and mandatory suspension of a driver’s license and vehicle registration.
House Bill 3115 passed out of the House Insurance Committee and now awaits a vote on the floor of the Oklahoma House of Representatives.
Topics Oklahoma
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