By SCOTT BAUGHMAN
Ledger Staff Writer

“Beginning in January of this year, officers now have the ability to suspend a driver’s license if a motorist cannot provide proof of insurance,” said DMV Constituent Services Director Beth Parks. “Years ago, the only method we had of detecting who was insured and who wasn’t was via random sampling, but we find out a lot faster now. The old process involved sending a letter to a motorist, telling them to provide us with proof of insurance. We stopped that around 2002. Whenever there was an accident, both parties had to show proof of insurance and then later the legislature passed into law the requirement of having an insurance card with you in your automobile. All that helped, but there were still problems with the system when it came to maintaining records of who was insured and who wasn’t.”

In fact, Parks noted that the insurance card system itself was far from foolproof.

“Well, if you sign up for an insurance policy, of course the company sends you a card in the mail,” she said. “But, that card, and really that policy, is designed under the premise that the motorist will continue to make payments and keep the insurance current. If you drop your insurance, by stopping making payments or merely canceling it outright, they don’t come and take your card back. We had many people driving around with ‘proof of insurance’ but no actual insurance policy.”

The days of carrying a card with no backing have come to an end. Parks explained that today, insurance companies notify the DMV with a letter or electronic message informing the government that the motorist may be uninsured whenever a driver drops his insurance coverage.

“We met with the companies to inform them about the problems we were noticing with the insurance card system and the Automobile Insurance Liability Reporting (ALIR) system was born,” she said.

Insurance companies report cancellations to the DMV every 30 days through the ALIR system. As soon as a policy is canceled, or a motorist is involved in an accident without insurance coverage, they will be subject to a fine of $5 per day for each day their vehicle has been uninsured. Vehicle owners who are reported to the DMV will then receive a letter giving them 45 days to provide proof of liability insurance coverage. If they cannot provide that proof, their license plate will be suspended, they will be required to pay a $200 reinstatement fee and the SC Highway Patrol will confiscate the suspended plate from the owner. In all cases, owners will be required to pay $5 for each uninsured date.

Part of the process to get that suspended license reinstated following an accident involves a judgement from a court showing that damages have been resolved. “If you get hit by an uninsured motorist the resolution is really between you and your insurance company,” Parks explained. “There is no state run fund for uninsured motorists that I’m aware of at this time.” The judge in the case can order the uninsured motorist to pay back any deductible cost for the victim, if he so chooses.

“The bottom line is that it’s going to be tougher and more expensive to drive without insurance,” said Marcia Adams, Director Designate of the Department of Motor Vehicles.

“Vehicle owners who allow their liability insurance coverage to lapse for even one day will pay a fine and may be subject to license plate suspension. The ALIR system will help us close the gap for uninsured motorists and hold them accountable,” she said.