Sponsor Statement for HB 95

Creating an Insured Motorist Database

Auto accidents, even minor ones can be traumatizing, but that trauma continues long after the crash when the driver responsible for the accident carries no insurance. In 1995, the number of motor vehicle accidents in Alaska involving uninsured drivers was 2,166. When medical bills cannot be paid because uninsured motorists are at fault, we are all adversely affected as taxpayers when Medicaid is needed to help cover the costs. This legislation has been introduced to decrease the number of irresponsible, uninsured motorists and helps protect law abiding drivers.

HB 95 will allow the Department of Public Safety to create and maintain an insured motorist identification database for the purpose of verifying compliance with the mandatory motor vehicle insurance provisions of AS 28.22. The program will cross-index drivers licenses and vehicle registrations with insurance policy records, provided monthly by all insurance companies doing business in Alaska. Using this database, a statewide list of uninsured motorists will be generated and warning letters will be mailed, requiring motorists to provide proof of insurance or to obtain insurance. The database system will also allow peace officers making routine traffic stops to electronically verify that a person has valid auto insurance.

The Department will contract with a third-party agent to establish the insured motorist identification database. To provide confidentiality of records, a provision in the bill prohibits public disclosure of the information in the database. The cost for maintaining the database will be covered by a surcharge on all vehicle registrations.

The uninsured motorist database has had a significant impact on the uninsured motorist population in Utah. Since its implementation in 1995, statistical data show that Utah's uninsured motorist population of 322,898 (23.18% of all Utah registered vehicles) have been reduced by 43% to under 140,000 motorists. Applying Utah's percentages to Alaska's 630,423 currently registered vehicles, some 145,000 vehicles may be uninsured. A 43% reduction like Utah had would result in 64,298 fewer uninsured motorists on Alaska's highways.