Insurance Verification Annual Report - Virginia Department of Motor ...
Insurance Verification Annual Report - Virginia Department of Motor ...
Insurance Verification Annual Report - Virginia Department of Motor ...
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IntroductionThe <strong>Department</strong> <strong>of</strong> <strong>Motor</strong> Vehicles (DMV) isresponsible for ensuring that all owners <strong>of</strong> registeredmotor vehicles are in compliance with <strong>Virginia</strong>’sfinancial responsibility laws. The <strong>Insurance</strong> <strong>Verification</strong>Program identifies vehicle owners who are not incompliance. Pursuant to the provisions <strong>of</strong> the <strong>Motor</strong>Vehicle Code, vehicle owners must have liabilitycoverage for their motor vehicle or voluntarily paya $500 uninsured motor vehicle (UMV) fee uponregistration. Payment <strong>of</strong> this fee does not provideor substitute for insurance coverage.Four activities comprise the Commonwealth’sverification program: Electronic <strong>Motor</strong> Vehicle Liability<strong>Insurance</strong> <strong>Report</strong>ing Suspected Uninsured Crash <strong>Report</strong>s Law Enforcement Notification Citizen Information/Police Crash <strong>Report</strong>sWithin each verification activity, DMV makes everyeffort to obtain the correct insurance informationfrom owners prior to taking action to suspend theowners’ driving and registration privileges. If anowner responds with incomplete or inaccuratedata, a written notice is returned to the ownerrequesting correct or additional information.Once DMV receives insurance information from theowner, the information is verified with the insurancecompany named by the owner. If the specifiedcompany denies vehicle coverage, DMV requeststhe owner to provide correct insurance informationand/or to resolve the problem with the insurancecompany. An order <strong>of</strong> suspension for driving andregistration privileges is issued only if the ownerfails to respond, is found not to have insurance, oradmits to not having liability insurance coverage.financial responsibility, a certificate <strong>of</strong> insurance(SR-22), for a period <strong>of</strong> three years. <strong>Insurance</strong>companies notify DMV if coverage is canceledduring this period. If canceled, DMV will issuean order <strong>of</strong> suspension for failure to maintain thecertificate.Customers are given the opportunity to complywith <strong>Virginia</strong>’s financial responsibility laws before apenalty is imposed. Customers are given additionaltime to either reinsure their vehicle, pay the UMVfee in lieu <strong>of</strong> insurance or to surrender to DMV thevalid license plates assigned to the uninsuredvehicle. Customers who fail to respondwill have their driving andregistration privilegessuspended.To reinstate driving and registration privileges, theowner must pay a $500 penalty and file pro<strong>of</strong> <strong>of</strong>2<strong>Department</strong> <strong>of</strong> <strong>Motor</strong> Vehicles<strong>Insurance</strong> <strong>Verification</strong> <strong>Annual</strong> <strong>Report</strong>, FY 2014OCTOBER 05, 2013
<strong>Virginia</strong> <strong>Insurance</strong> <strong>Verification</strong> Program (continued)Penalties ImposedPersons found in violation <strong>of</strong> <strong>Virginia</strong>’s motor vehicleinsurance laws must comply with establishedpenalties. They must comply with the terms <strong>of</strong> anorder <strong>of</strong> suspension or their driving and registrationprivileges will be suspended. Compliance includesthe payment <strong>of</strong> a $500 penalty fee and filing pro<strong>of</strong> <strong>of</strong>insurance, a certificate <strong>of</strong> insurance (SR-22), for threeyears. During FY 14, 37,604 uninsured motoristspaid the penalty fee after being detected through the<strong>Virginia</strong> <strong>Insurance</strong> <strong>Verification</strong> Program. The number<strong>of</strong> orders <strong>of</strong> suspension issued during FY 14 totaled45,321. The requirement to file pro<strong>of</strong> <strong>of</strong> insuranceenables DMV to ensure that these individuals do, infact, maintain liability insurance.Revenue DispositionGross revenue collections from the Uninsured<strong>Motor</strong> Vehicle (UMV) and penalty fees comprise theUninsured <strong>Motor</strong>ists Fund and totaled $19,457,766for FY 14. DMV’s appropriation from the grossrevenue collected was $5,446,600. The net fundsavailable for transfer to the State CorporationCommission (SCC) were $6,313,564. The SCCdistributes moneys annually from the Fund amongthe insurance companies writing motor vehiclebodily injury and property damage liability insuranceon motor vehicles registered in <strong>Virginia</strong>. <strong>Insurance</strong>companies receive these funds in the sameproportion as the number <strong>of</strong> motor vehicles thatthey insure. (<strong>Virginia</strong> requires uninsured motoristcoverage in all motor vehicle liability policies.) Fundsdistributed by the SCC are used to help <strong>of</strong>fset the cost<strong>of</strong> the uninsured motorist coverage required for allliability insurance policies written in <strong>Virginia</strong>.409/01/13 03/01/14<strong>Department</strong> <strong>of</strong> <strong>Motor</strong> Vehicles<strong>Insurance</strong> <strong>Verification</strong> <strong>Annual</strong> <strong>Report</strong>, FY 2014
<strong>Virginia</strong> <strong>Department</strong> <strong>of</strong> <strong>Motor</strong> VehiclesP. O. Box 27412Richmond, <strong>Virginia</strong> 23269(804) 497-7100
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