State lawmakers last month approved a provision that will allow the Department of Revenue to electronically verify whether a vehicle is insured, and insurance advocates see it as all good.
“Any opportunity to keep people compliant with the law is best for everybody,” said Scott Holeman, a spokesperson with the Insurance Information Institute (III) in Kansas City. “It's the law for people to be insured so we want more drivers on the road to be insured.”
Missouri law currently requires its drivers to carry uninsured (UI) but not underinsured motorist (UIM) coverage and given the household income disruption caused by the pandemic in 2020 and 2021, the Insurance Research Council (IRC) expects the rate of uninsured motorists to increase
“When you have uninsured drivers on the road, that raises costs for everybody so if you're paying for insurance and an uninsured driver hits you, your insurance company will take care of you but it raises the cost on the people who are paying insurance already,” Holeman told the St. Louis Record. “So, it's really just reinforcing what's already a law.”
The bill has yet to be signed into law by Gov. Mike Parson.
As previously reported in the St. Louis Post Dispatch, the provision is part of a larger package that also prohibits holding or using a cell phone while driving.
The law also allows the suspension of any car owner’s registration when it is determined to be in violation of the state's insurance requirement.
“It’s just going to ensure that you've made your insurance payment because if don't keep up with your payments, your insurance is going to be canceled,” Holeman added. “Some people forget to pay. Some people cancel. Some people say they can't afford it anymore and let it go then hope they don't get caught because until now unless you got pulled over, nobody would be asking for that information.”