OAI: Electronic Proof of Car Insurance an Increasingly Popular Option

The option of showing your smartphone to the authorities to prove you have insurance is getting more notice around the U.S., with Idaho recently becoming the first state permitting electronic means of demonstrating coverage, reports Online Auto Insurance News.

The law, called SB 1319 and enacted Tuesday, takes effect July 1 and allows "display of electronic images on a cellular phone or any other type of portable electronic device" for showing proof of coverage to police or state officials, according to the bill's language. That means mobile devices showing PDF and similar formats are now a legal and paperless way to show that motorists in Idaho have a policy.

Kenton Brine, assistant vice president of Property Casualty Insurers Association of America (PCI), which is advocating electronic proof of coverage, called it "the wave of the future."

Drivers in many states who purchase car insurance can get proof of a policy on their smartphones, but advocacy groups like PCI hope more states will begin to recognize this as a legitimate form of proof. 

"This new and convenient alternative gives individuals a paperless option that will prevent them from having to fumble through the glove compartment only to find out their proof of insurance card was misplaced," PCI said in a statement.

While the Gem State is the first enacting such measures, others like Arizona and California are not far behind. Arizona's HB 2677, awaiting the governor's signature, permits means of proving coverage similar to Idaho's measure, and California legislators are currently considering a bill that would allow the same. Similar means of proof are already allowed during the vehicle registration process in Colorado.

The biggest hurdle might be simply proposing such measures; Idaho's SB 1319 saw a smooth route through Congress after the bill was introduced in February, garnering unanimous support in the Senate and only one dissenting vote in the House.

Source: http://www.legislature.idaho.gov/legislation/2012/S1319.htm

To learn more about state-by-state insurance issues, go to http://www.onlineautoinsurance.com/buy/ for access to informative resources about coverage and an easy-to-use quote generator.