Del. Becomes First State to Implement InsureNet’s Vehicle Verification System

June 11, 2003

Technology provider InsureNet USA Inc. announced that Delaware has become the first state in the U.S. to adopt the company’s InsureNet System, an accurate vehicle insurance status system.

The system, which operates in “real time” providing constantly updated information, “allows a law enforcement officer to determine up to date insurance status on any vehicle, when a registration is checked or an ID card is read,” said the bulletin. “It also ensures that no vehicle would be registered without ‘verifiable’ current insurance coverage.”

The system, which is undergoing final testing, will eventually “be provided to every vehicle insurance company operating in Delaware,” said the company. It noted that using its system will help eliminate “backdated policies, ‘funds float,’ diverted premiums, and more.” It will also attack the problem of uninsured motorists. According to InsureNet “it is estimated that at least one in five U.S. drivers is currently uninsured, resulting in insurance losses in the billions of dollars annually.” It also noted that using its system would “result in additional business for Delaware’s insurance companies because all owners of vehicles registered in Delaware will be forced to maintain insurance coverage.” The system can handle insurance verification in all of the forty-eight States in which vehicle insurance is mandatory in about three hours.

Delaware Insurance Commissioner Donna Lee H. Williams stated, “The InsureNet System will close the door on those drivers who think that they can drive without insurance in Delaware. The number of uninsured motorists will be drastically reduced, making our streets and highways far safer. The system should generate dramatically increased revenues for both the State and our insurance industry. As a result, it is my hope that policyholders could see a reduction in insurance premiums over time and certainly receive better service. This agreement with InsureNet provides a big win for the Citizens of Delaware.”

InsureNet USA also indicated it has made presentations of its vehicle insurance identification system in 27 other states.

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