You asked what program the Department of Motor Vehicles (DMV) has in place to ensure individuals are maintaining the minimum motor vehicle insurance required by law and the fines for not maintaining such insurance.

SUMMARY

Connecticut requires private passenger automobile owners to provide and maintain liability insurance on each motor vehicle owned. The Department of Motor Vehicles (DMV), insurance companies, and the Department of Public Safety (DPS) law enforcement officers partner to enforce compliance.

DMV checks for insurance when a person registers a vehicle or restores a license after a suspension. Insurance companies provide monthly notification to DMV of certain motor vehicle insurance policies cancelled the prior month. DMV follows-up on cancellation notices and cancels registrations when warranted. DMV forwards information to DPS, which updates a system that police officers access from their patrol cars.

If a person is convicted of operating a motor vehicle without the required insurance, the court fines him between $ 100 and $ 1,000 (CGS § 14-213b). If a person drives without motor vehicle insurance, he is guilty of a class C misdemeanor (imprisonment up to three months, a fine up to $ 500, or both) (CGS § 38a-371). Effective January 1, 2006, an owner of a vehicle with a commercial registration who knowingly operates or permits the operation of the vehicle without the required insurance is guilty of a class D felony (PA 05-3, Oct. 25 Spec. Sess). For a detailed discussion of penalties, see OLR Report 2005-R-0863 (copy attached).

DMV is currently conducting a manual audit of motor carriers’ compliance with financial security (insurance) requirements for vehicles with commercial registrations. It will report its findings to the Insurance and Real Estate and Transportation committees by January 1, 2007.

REQUIRED MOTOR VEHICLE INSURANCE

State law has required certain private passenger vehicles to maintain minimum levels of motor vehicle insurance since 1972 (CGS § 38a-371). Under the motor vehicle insurance law, “private passenger motor vehicle” excludes a motorcycle or motor vehicle used as a public or livery conveyance. It includes a:

1. private passenger-type automobile;

2. station wagon-type automobile;

3. camper-type motor vehicle;

4. high-mileage-type motor vehicle (added by PA 81-394);

5. truck-type motor vehicle with a load capacity of 1,500 pounds or less, registered as a passenger motor vehicle or passenger and commercial (combination) motor vehicle, or used for farming purposes; or

6. vehicle with a commercial registration (added by PA 94-243) (CGS § 38a-363(e)).

INSURANCE CANCELLATION

Each insurer issuing any private passenger motor vehicle liability insurance policy notify DMV monthly of any policy cancelled in the prior month (CGS § 38a-343a). This cancellation notification only applies to an automobile liability policy for the following vehicle types:

(A) A motor vehicle of the private passenger or station wagon type that is not used as a public or livery conveyance for passengers, nor rented to others, or (B) any other four-wheel motor vehicle with a load capacity of 1,500 pounds or less which is not used in the occupation, profession or business of the insured, provided [it does] not apply (i) to any policy insuring more than four automobiles, or (ii) to any policy covering garage, automobile sales agency, repair shop, service station or public parking place operation hazards, or (iii) to any policy of insurance issued principally to cover personal or premises liability of an insured even though the insurance may also provide some incidental coverage for liability arising out of the ownership, maintenance or use of a motor vehicle on the premises of the insured or on the ways immediately adjoining the premises (CGS § 38a-341(1)).

In addition to notifying DMV of the policy cancellation, the insurance company must provide the insured with a warning notice that, among other things, informs him that (1) the cancellation will be reported to DMV, which will contact him to determine if the required insurance coverage is being maintained, and (2) if coverage lapses at any time, DMV will cancel the vehicle registration and subject the license plates to confiscation (CGS § 38a-343(b)).

Effective January 1, 2006, owners of vehicles with commercial registrations must, at least once every six months, file with DMV evidence that they are maintaining the financial security (e. g. , insurance) required by law. At least once every two years, the owner must file a motor carrier identification report with the security evidence (PA 05-3, October 25 Spec. Sess. ). The act requires the DMV commissioner to suspend the registration of each motor vehicle registered in the owner’s name if the owner does not make the required filings.

INSURANCE COMPLIANCE PROGRAM

Upon receipt of the monthly private passenger motor vehicle insurance policy cancellation reports from insurers, DMV reviews the data in conjunction with registration records to identify registered owners who have failed to continuously maintain insurance throughout the registration period. DMV mails verification letters to the identified registrants. If an individual does not reply to the letter with proof of insurance, DMV initiates a registration cancellation process, including an opportunity for a hearing (CGS §§ 14-12c and 14-12g).

DMV maintains a database with the cancelled insurance information. The database is not directly accessible by police officers and it is not a real-time system, meaning it does not reflect up-to-the-minute information. Instead, DMV provides the Department of Public Safety (DPS) with a paper list of registrations with cancelled insurance. DPS enters this information in its COLLECT system, which police officers can access from their patrol car. When an officer enters a query on a license plate number in COLLECT, the code “CAN/INS” will appear if DPS has been made aware of cancelled insurance.

Police officers take enforcement action whenever a motor vehicle operator appears to have violated state law. In general, enforcement action may include “no action,” verbal warning, written warning, a motor vehicle infraction ticket, or a misdemeanor summons. Police officers have a certain amount of discretion in citing offenses. (Source: Major Frank Griffin, Commanding Officer, Connecticut Department of Public Safety).

If a person is convicted of operating a vehicle without the required insurance, Connecticut law requires DMV to suspend his vehicle registration and driver’s license for one month for a first conviction and six months for subsequent convictions (CGS § 14-213b(c)). A motorist whose registration has been suspended may also have his license plates confiscated and vehicle impounded (CGS § 14-12h).

With respect to vehicles with commercial registrations, DMV is currently conducting a manual audit of motor carriers’ compliance with financial security (insurance) requirements. PA 05-3 requires it to report its findings to the Insurance and Real Estate and Transportation committees by January 1, 2007.

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