HARRISBURG – The Senate Transportation Committee, chaired by Sen. Judy Ward (R-30), held a hearing Wednesday to question the Pennsylvania Department of Transportation (PennDOT) about fixing alleged lapses in car insurance.
“Every month, PennDOT suspends more than 15,000 vehicle registrations based on an alleged lapse in coverage, and almost a third of those suspensions are rescinded once PennDOT receives proof of car insurance,” said Ward. “An overhaul is needed to improve PennDOT’s verification process. The purpose of today’s hearing was to help us find a better solution to fix these F-stops without placing an undue burden on those who are properly maintaining coverage.”
The committee received testimony from several individuals including PennDOT Secretary Mike Carroll and the president of Insurance Federation of Pennsylvania.
Every motor vehicle owner in Pennsylvania is required by law to have car insurance without any lapse in coverage. While auto insurance companies are required to tell PennDOT when they have canceled an insurance policy, the new insurance company is not required to notify PennDOT of the new coverage.
When PennDOT receives a notice of cancellation or termination from the insurer, PennDOT sends letters to the vehicle owner, prompting them to provide acceptable proof of coverage, such as emailing frinsurance@pa.gov. Failure to respond to the letters can result in, and not limited to, a three-month registration suspension or a $500 civil penalty.
If the person fails to respond to the second letter, PennDOT automatically imposes the three-month registration suspension. The vehicle owner may also have to pay a restoration fee of $112. A person may appeal the suspension imposition in court.
The hearing’s outcome emphasized online verification as a proposed legislative fix to alleged lapses in car insurance. According to testimony received, PennDOT continues to undergo a massive system modernization and any online verification system would need to account for these modernization efforts and timelines.
Video of today’s hearing can be found here.
CONTACT: Nolan Ritchie, 717-787-5490