HARRISBURG, PA — Gov. Josh Shapiro on Thursday signed bipartisan legislation requiring the Pennsylvania Department of Transportation to create an online system for verifying vehicle insurance, a move supporters say will spare thousands of drivers from unexpected registration and license suspensions.
The measure, House Bill 710, was authored by House Transportation Committee Chair Ed Neilson and co-authored with Minority Chair Kerry Benninghoff. It passed both the House and Senate unanimously and is expected to take effect in 2027.
Under current law, insurers must notify PennDOT if a driver cancels coverage within six months of a policy’s start date. PennDOT then sends a letter demanding proof of insurance, warning that a failure to respond could lead to a three-month vehicle registration suspension.
“Oftentimes, vehicle owners don’t respond to PennDOT’s letter because it was lost in the mail, ignored, or misunderstood,” Neilson said. “As a result, they may face a three-month registration suspension without even knowing it.”
In many cases, Neilson said, drivers only discover the suspension after being pulled over by police, triggering an additional three-month driver’s license suspension and fines.
Neilson’s office said PennDOT also frequently sends notices for insurance lapses that never occurred, such as when a driver switches insurers or policies. Of the thousands of letters mailed each month, an estimated 31 percent were sent to drivers who never lost coverage.
The new law directs PennDOT to develop an electronic verification system allowing the department and law enforcement to confirm a driver’s insurance status directly with insurers, eliminating the need for mailed notices.
Neilson said the bill followed more than three years of negotiations involving all four legislative caucuses, PennDOT, and the auto insurance industry.
“This bill is the result of over three years of bipartisan negotiations between all four caucuses, PennDOT, and the automobile insurance companies to reach a solution,” he said. “This new law will provide real relief to Pennsylvania’s drivers.”
Neilson also credited Gov. Shapiro, Transportation Secretary Mike Carroll, Benninghoff, and state Sens. Judy Ward and Marty Flynn for helping shepherd the legislation into law.
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