American Property Casualty Insurance Association
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Nicole Mahrt Ganley


916-440-1116 or cell 916-616-5855





February 3, 2014

South Dakota Measure Gives Consumers More Choice and Flexibility to Prove Auto Insurance

PCI Supports Trend to Modernize Insurance Laws

CHICAGO, IL – The trend of states modernizing their insurance laws is continuing in 2014 says the Property Casualty Insurers Association of America (PCI).  Last week, the South Dakota House Transportation Committee voted 13 to 0 to advance legislation allowing drivers to use their smart phone to show proof of financial responsibility electronically.  Twenty-three states approved electronic proof of coverage legislation in 2013.

“Drivers are often stuck digging through their glove compartment trying to find that little piece of paper.  This bill will give South Dakota drivers another way to show they have insurance coverage,” said Kelly Campbell, PCI vice president. “More and more consumers are using technology to manage their personal finances. Outdated laws enacted long before the invention of today’s technology did not anticipate the new platforms and methods of communication that are so prevalent today. Public policymakers understand this and are working to modernize insurance laws so consumers can take advantage of current technology.”

HB 1120, authored by Rep. Haggar, will provide for alternative documentation of financial responsibility for vehicles. Simply put, consumers will be allowed to use their cell phone to show proof of insurance. South Dakota is one of eight states considering electronic proof of insurance legislation thus far in 2014, the other seven being Delaware, Michigan, Nebraska, New York, Ohio, Rhode Island and South Carolina. 

“HB 1120 provides consumers a choice of having that little piece of paper in the car or using a smart phone to show proof of coverage,” said Campbell.  “This will save time, paper and the court costs to settle ’fix-it’ tickets.”

The following states enacted e-card laws in 2013: Alaska; Arkansas; Colorado; Florida; Georgia; Illinois; Indiana; Iowa; Kansas; Kentucky; Maine; Mississippi; Missouri; North Dakota; Oklahoma; Oregon; Pennsylvania; Tennessee; Texas; Utah; Washington; Wisconsin; Wyoming.

PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $195 billion in annual premium, 39 percent of the nation’s property casualty insurance. Member companies write 46 percent of the U.S. automobile insurance market, 32 percent of the homeowners market, 37 percent of the commercial property and liability market, and 41 percent of the private workers compensation market.