NEWS BRIEF
Pinching Insurance Pennies Can Help Consumers Tighten Their Belts in Bad Economy
July 31, 2008 — It’s estimated that most consumers could save more than 20% on insurance if they took simple steps such as raising deductibles, comparison shopping and taking advantage of discounts. More...
Colorado's Uninsured Motorist Database
The database law
What if you are caught without insurance
About the insurance database
Insurance companies and the database
Resources
The Database Law
History
In 1997, House Bill 1209 was enacted. This legislation required the Motor Vehicle Division to contract with a provider to develop and maintain a database of insured vehicles. The bill also requires any insurance company that writes vehicle liability policies in Colorado to report new business and canceled policies at least monthly. As of January 1, 2005, the penalties for driving without insurance increased.
Purpose
To ensure that Colorado motorists comply with mandatory auto insurance laws. The intent of the law is to reduce the rising number of uninsured drivers in Colorado.
What if you are caught without insurance?
Q. What if I am stopped by a law enforcement officer and do not have automobile insurance?
A. The database provides officers with another tool to verify insurance prior to taking further action. If you do not show as insured, the penalties are (per Colorado Statute 42-4-1409):
- Four points against your driver license.
- First offense: minimum $500 fine, and license suspension until you can show proof to the Division of Motor Vehicles that you are insured.
- Second offense: minimum $1,000 fine and license suspension for four months.
- Third and subsequent offenses: minimum $1,000 fine and license suspension for eight months.
- Courts may add up to 40 hours community service to the above penalties.
Q. What can I do if I am uninsured and my license has been confiscated?
A. If your license is surrendered to the officer or the Motor Vehicle Division, you will be required to pay a fee to replace the license even if it has not actually been suspended. You must act within seven days to avoid suspension by filing future proof of liability insurance, in the form of an SR22, to be maintained for three years. The SR22 form is obtained from an insurance company. In addition, you may be issued a summons for no liability insurance and have to appear in court to handle that matter separately. The driver also has the option of requesting a motor vehicle hearing.
Q. What if my license is suspended?
A. You must pay a $40 reinstatement fee and file future proof of liability insurance, in the form of an SR22, with the Motor Vehicle Division, to be maintained for three years. The SR22 form is obtained from an insurance company.
Q. How do I request a motor vehicle hearing?
A. You must show a current auto insurance policy in your name and make the request for a hearing, in writing, at any Driver License office or mail your request to the Motor Vehicle Division, Driver Service Section, Denver, CO 80261. (A street address is not necessary.)
Q. What if the reason for contact with an officer was due to an accident?
A. You must also comply with the Financial Responsibility Act requirements such as filing an accident report or, if not insured, posting security in the amount of damages, filing an SR22 with the Motor Vehicle Division, entering into an agreement to pay the other party, and being released by the other party or being adjudicated not liable for damages. The responding officer also has the option of confiscating your driver license and serving you with a notice that suspends your driver's license in seven days.
Q. What if I am stopped by a law enforcement officer and do not have my insurance information with me?
A. The officer has the ability to check the insurance database and, if your vehicle shows as insured, you may still be issued a summons for no liability insurance in possession and have to appear in court. It is still your responsibility to have automobile insurance in the vehicle when driving.
Q. What happens if I have a license but am stopped while driving someone else's uninsured vehicle?
A. You are still subject to the same laws. You may still have your license confiscated, be served with a notice that suspends your driver's license within seven days, and be issued a summons for no liability insurance and a court appearance.
About the insurance database
Q. Who manages the database?
A. The Colorado Department of Revenue manages the database.
Q. What information does the database contain?
A. The database contains information about your Colorado driver license, vehicle and any information submitted by insurance companies regarding insured vehicles and all individuals listed as insured on your policy.
Q. How will information be submitted by insurance companies?
A. In most cases, information will be transmitted electronically to the designated vendor and will be matched to the driver and/or vehicle listed.
Q. What information will be submitted by insurance companies for the database?
A. The vehicle identification number (VIN), make and year of the vehicle, and the name, date of birth, license number and address of each named insured or owner on the policy. This information allows for a match to the state vehicle and driver files.
Insurance Companies and the insurance database
Q. How long does an insurance company have to report new policyholders to the Motor Vehicle Division?
A. At least monthly; by the seventh working day of each month. Some insurance companies have volunteered to provide the information on an earlier basis.
Q. How long does an insurance company have to report canceled policies?
A. 10 days.
Q. What are the consequences for insurance companies not reporting new business and canceled policies?
A. Insurers face a $250 fine for each day these reports are not received after the seventh working day of the month.
Resources
Q. Who can I call for further information regarding insurance?
- Colorado Motor Vehicle Division: (303) 205-5949
- Colorado Division of Insurance: (303) 894-7499
- Rocky Mountain Insurance Information Association:
(303) 790-0216 or (800) 355-9524
Saving Money on Auto Insurance
BE SURE YOU CARRY PROOF OF INSURANCE AT ALL TIMES WHILE DRIVING!
How Medical Bills are Paid After an Auto Accident
When you buy auto insurance you need to think about what actually happens when you're in an accident and need to use it...
Updated:
February 28, 2007 1:52 PM
© Copyright Rocky Mountain Insurance Information Association
7951 E. Maplewood Avenue, Suite 130 • Greenwood Village, Colorado 80111 USA
(303) 790-0216 or Toll Free (800) 355-9524
Legal notice, Disclaimer & Terms of Use