BETHLEHEM, Pa. — The state House of Representatives has unanimously approved legislation aimed at modernizing how the state tracks motorists' insurance coverage, sending the measure on to the state Senate for consideration.
House Bill 710, sponsored by state Rep. Kerry Benninghoff, R-Centre/Mifflin, on Wednesday passed by a 203-0 vote on final passage after moving through committee with no opposition.
"For far too many Pennsylvanians, switching insurance carriers when purchasing a new vehicle or simply shopping for better coverage has become a painful experience."State Rep. Kerry Benninghoff
The bill had 24 additional co-sponsors, including two from the Lehigh Valley: Rep. Steve Samuelson and Rep. Robert Freeman, both Northampton County Democrats.
The legislation would amend Title 75 (Vehicles) of the Pennsylvania Consolidated Statutes to establish an online verification system for automobile insurance coverage.
Lawmakers say the legislation addresses longstanding concerns with Pennsylvania’s current insurance-tracking methods, which rely on paper notices and an outdated database that frequently leads to so-called F-stops — registration suspensions triggered by alleged lapses in coverage that do not exist.
"No one enjoys receiving a letter threatening suspension of their vehicle registration due to insufficient auto insurance coverage,” Benninghoff said in a news release.
"For far too many Pennsylvanians, switching insurance carriers when purchasing a new vehicle or simply shopping for better coverage has become a painful experience, and it’s a situation that is easily avoidable.”
What the bill changes
Under the bill, an online liability verification system would require insurance providers to submit policy data directly, letting the state Transportation Department, law enforcement and courts confirm coverage electronically in real time.
Proponents say the changes would reduce erroneous notices, help prevent uninsured driving and cut down on administrative burdens for motorists.
Insurers now must report policy cancellations to PennDOT but are not required to report new policies, meaning the agency often lacks current information when coverage changes hands.Proposed Pennsylvania auto insurance legislation
Insurers now must report policy cancellations to PennDOT but are not required to report new policies, meaning the agency often lacks current information when coverage changes hands.
The new system would close that gap by creating a central, searchable database of coverage status.
The legislation also includes provisions to maintain notices to vehicle owners when the system shows no coverage, giving individuals an opportunity to prove insurance before penalties are imposed.
With the House vote complete, HB710 now moves to the state Senate, where it must be considered by relevant committees and ultimately approved by the full chamber before it can be sent to the governor for his signature.
