Texas Uninsured Motorist System Announces Next Step

The Texas Department of Insurance announced today that as of September 1st, 2009, notices will be sent to policyholders whose vehicle has been reported as insured by their insurance company but the State is unable to locate the vehicle’s record in the Texas motor vehicle database.  Without the insured vehicle’s information being matched to a record in the Texas database, it is possible the vehicle could mistakenly be identified as uninsured.  This only applies to a very small percentage of vehicle owners in Texas as the TexasSure program has achieved outstanding results by matching over 99% of policyholder records.  Often times the match is unable to be made because the vehicle registration has lapsed or the vehicle identification number listed on the insurance policy is incorrect. 

TexasSure, the Uninsured Motorists Verification System, was enacted by the 79th Legislature in an effort to reduce the number of uninsured drivers in the State of Texas.  The program was launched in June 2008 and has proven to be an effective way for law enforcement and county tax offices to determine if a vehicle is uninsured. “After a vehicle is pulled over, the TexasSure database is a fantastic tool that helps law enforcement identify those who are driving without insurance.” said Lt. Louis Sanchez of the Texas Department of Public Safety.

It is estimated, at a minimum, 20% of the vehicles on Texas roads are uninsured which translates to one out of every five cars.  Twenty-seven other states currently use a system similar to the TexasSure Uninsured Motorists Verification System.  According to a feasibility study released by the Department of Insurance in 2005, on average those states reported a 63% reduction in uninsured motorists after implementing this type of system.  Applying those same statics to Texas would equate to lowering the number of uninsured vehicles by over 2.5 million.

The Alliance of Insurance Agents of Texas (AIAT) played a significant role in the passage of this bill.  A non-profit organization, whose membership consists of small independent insurance agency owners, mounted a grassroots effort to reduce the number of uninsured drivers on Texas roadways.  “I can’t tell you how many times I have heard stories from victims of uninsured drivers and the terrible impact it had on their lives,” commented AnMarie Bozick, past president of the AIAT “While no one should have to experience the financial consequences of getting hit by an uninsured driver, it is especially heart breaking when you hear these stories from low-income individuals.  Their vehicles provide a means by which they can support their family, and through no fault of their own, those means are taken away.”

Recipients of letters from the TexasSure program have several options to rectify the problem: 

• Verify the Vehicle Identification Number (VIN) on the vehicle matches the VIN listed on the proof of insurance card. If it doesn’t, immediately contact the agent or insurance company and provide the correct VIN number.
• If the vehicle registration has lapsed, renew it by visiting a local county tax office.
• If the vehicle is not registered in Texas, complete the form enclosed with the letter and either mail it to the address listed or submit it online at www.texassurehelp.com.
• If the vehicle was recently sold, notify the insurance company of such and file a free Vehicle Transfer Notification form online or at a TxDot Vehicle Titles and Registration Division office. Office locations and forms can be found at www.txdot.gov.
• Finally, if none of the above applies, contact a TexasSure representative at 888-613-5296.

Later this year, TexasSure will initiate a proactive approach to reduce the number of uninsured drivers by sending notices directly to individuals that own vehicles that appear to be uninsured.  The Texas Department of Insurance will release additional information on this approach as the time draws nearer.

For additional information about the TexasSure program, visit www.texassure.com or www.aiat.org.