Arizona Passes Law to Verify Auto Insurance

July 30, 2009

Arizona Gov. Jan Brewer has signed into law a bill designed to reduce the number of uninsured motorists on the road. HB2224 requires that a driver that has a third or subsequent violation within three years for not producing proof of insurance must submit proof of financial responsibility before the person’s drivers license, registration and license plates are reinstated.

Arizona law requires an owner of a motor vehicle in the state provide proof of financial responsibility, and to carry that evidence in the vehicle. Failing to produce such evidence is subject to penalties from $500 to $1,000, depending on whether it is a first, second or subsequent offense. The driver’s license, registration and license plates also can be suspended for three months for the first offense, up to one year for a third or subsequent offense.

The Arizona Agents Alliance, an organization made up of more than 120 independent insurance agencies, commended the signing of the bill, saying it takes “critical steps to reduce the number of uninsured motorists on Arizona’s roads by creating safeguards against habitual offenders gaming the legal system to avoid the requirement of maintaining financial responsibility to drive in this state.”

The new measure gives judges throughout the state the ability to more readily know how many times a person has violated the state’s insurance requirement provisions and requires the penalties already in place to be applied for multiple offenders. It also institutes an additional regular reporting requirement to show compliance with the law for those who get cited three times within a 36 month period for driving without insurance.

Rich Franko, President of the Arizona Agents Alliance, said, “We truly appreciate the Legislature and the Governor coming together to enact a measure that protects the vast majority of law abiding citizens from those who have been able to game the system and avoid compliance with the law until now.”

HB 2224 will become effective on this year’s general effective date of October 1.

Source: Arizona Agents Alliance, Arizona Legislature

Topics Auto Arizona

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