Penn. to Allow Electronic Proof of Auto Insurance Coverage

Pennsylvania Gov. Tom Corbett in December signed into law Senate Bill 1040 that would allow state residents to show their proof of auto insurance electronically using mobile devices during a traffic stop.

Under the new law, insurance companies can electronically issue financial responsibility identification cards, if both the insurance company and consumer agree.

“With the type of technology we literally have at our fingertips, we receive all sorts of documents electronically,” said Pennsylvania State Rep. Tina Pickett, who serves as chairman of the state’s House Insurance Committee. “It is time to update our laws to reflect this change, and that’s why we are now working to make it easier for motorists to receive their auto insurance cards electronically.”

As of Dec. 26, 2013, 30 states have adopted laws and/or regulations allowing electronic proof of auto insurance. In the Northeast, Maine, Pennsylvania and Virginia have now adopted the measure.

Additionally, a separate section of the bill would allow residents to sign up for collision coverage without a deductible. The legislation removes the requirement that vehicle owners carry insurance policies with a minimum deductible for collision coverage. Previously, state law mandated that vehicle owners carry a $100 minimum deductible for collision coverage.

The new law will take effect on Feb. 21 (60 days after Dec. 23, 2013, when the bill was signed into law).