Most states require drivers to have insurance coverage (i.e., an auto ID card as proof). However, some states require the insurance company to provide this evidence. This is accomplished through electronic reporting to the various motor vehicle departments. While many states mandate vehicle reporting for personal line policies, auto reporting is also required for commercial line policies in some of these same states.
Depending on the state's requirements, reporting may be necessary at either the policy level or the vehicle identification number (VIN) specific level. For VIN-specific reporting, the information required includes the VIN, make, year and sometimes the exact vehicle registrant's name and address. This information is sent to the Department of Motor Vehicles (DMV) in various ways, such as electronic files and spreadsheets, with reporting frequencies ranging from daily to monthly. Additionally, some states offer web services with real-time processing. Ultimately, this reporting is subject to strict timeliness and data quality measures.
A Sampling of State Requirements
Various states have specific guidelines and procedures. For example, in New York, all vehicles must be reported within seven days of registration. The exact vehicle registration name, address, federal employer identification number (FEIN) and registration date are required. Additionally, all cancellations must be reported within 30 days. In Illinois, Oklahoma and Rhode Island, an insurance carrier can register as a commercial fleet carrier, which provides an exemption from electronic reporting. Georgia also allows for a commercial fleet carrier exemption; however, electronic reporting is still required for commercial vehicles registered under an individual’s name. There are special considerations in Georgia, such as not using an insurance binder when picking up vehicles at a dealership, as binders expire after 30 days, and the state expects electronic reporting to occur before then. Drivers need to have the correct fleet auto ID cards (51 ACORD), and fleet vehicle owners must register in person at the DMV or use the state’s E-Fleet process.
After the Commercial Carrier Reports the Information
Once the DMV receives this information, they may contact the carrier seeking additional details, such as error reports (i.e., incorrect registrant information), insurance verification letters or suspension letters. The carrier then partners with the DMV to promptly resolve any outstanding concerns.
Helpful Tips
When a driver registers or renews their vehicle, it is important to provide a current auto ID card that includes the insuring company, policy number, policy term and the National Association of Insurance Commissioners (NAIC) number. In addition, it should be indicated that this is a commercially insured or fleet vehicle.
To help accomplish the strict timeliness goals, changes to the fleet list (additions/deletions), registration name changes and vehicle state transfers need to be promptly communicated to the carrier.
Remember that vehicle reporting is only as good as the information that is received.
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