Pennsylvania Reminds Drivers, Insurance Producers How to Switch Auto Coverage

Pennsylvania Insurance Commissioner Jessica Altman is encouraging producers who sell auto insurance policies to help their customers understand what they need to do when switching to a new auto insurer to avoid any possible registration suspension.

She said her department will use a new email communications strategy to get this information to more than 77,000 licensed property and casualty producers in an effort to strengthen the department’s partnership with the industry.

She reminded Pennsylvanians that if a new insurer, producer or policyholder does not notify the Pennsylvania Department of Transportation (PennDOT) of new coverage, the driver may receive a proof letter. This letter tells the driver PennDOT has been notified their auto insurance was cancelled, and while this may only be because of a switch in auto insurers, the driver must verify new coverage.

The volume of complaints the Pennsylvania Insurance Department receives may indicate many drivers disregard this letter or assume their new insurance company is required by law to report the new coverage, she added in a press release issued by the Pennsylvania Insurance Department.

If drivers fail to respond to the proof letter, they receive an official notice of suspension 60 days after PennDOT was notified of their former insurance being cancelled. This letter warns that the driver’s vehicle registration will be suspended or the driver may pay a $500 civil penalty fee as well as a restoration fee to reinstate the vehicle registration.

Altman also released details of a new email communications strategy to deliver information directly to licensed property and casualty insurance producers in Pennsylvania. She said the communications will be used to get information to producers to help them better serve insurance consumers.

“My hope and belief is that this will strengthen the partnership between the Insurance Department and the industry as we continue to seek ways to provide education, protection and service to the insurance consumers of Pennsylvania,” Altman said in a statement, adding that her department plans to use this new communications tool occassionally when important information needs to be sent to a large number of producers quickly.