Legislation aims to make insurance coverage more flexible
A new legislation in Pennsylvania may have a dramatic impact on the way drivers receive auto insurance coverage throughout the state. Senate Bill 1040 has been gaining momentum in the state’s Legislature and aims to make it possible for drivers to provide proof of their auto insurance coverage electronically and sign up for coverage without deductibles. The legislation has managed to acquire strong support from state lawmakers that believe some changes to the auto insurance sector should be made for the sake of consumers.
Electronic proof of insurance may soon be available to Pennsylvania drivers
The legislation would allow insurance companies to issue electronic financial responsibility cards, which drivers can show off using their mobile devices. These cards can be issued only if both an insurer and a driver agree on the matter, however. Lawmakers note that mobile devices are already widely used to send and receive various types of digital information and it may be more convenient for consumers to receive their proof of coverage through their devices along with all the other information they have access to.
No-deductible policies may be available in the future
Beyond proof of insurance, the legislation will also make it possible for Pennsylvania residents to purchase auto insurance policies that have no minimum deductible. Currently, state law requires that all drivers have coverage with at least a $100 deductible in order to manage the costs associated with collision coverage. This law is meant to mitigate the impact of auto insurance fraud to some degree, but many lawmakers suggest that it is simply no longer a necessary measure.
Legislation attracts strong support
If signed into law, the provisions of the legislation will be implemented within 60 days, but will not affect insurance policies until they are renewed with their provider. The legislation is expected to make its way through the state’s legislative process with relative ease as it also has the support of some auto insurance companies that have been pushing for more flexibility within the state market in recent years