Digital proof of insurance? Yes, there’s an app for that!

On the auto insurance scene, there’s a new insurance software tool available . . . one that your tech-savvy customers will love … digital proof of insurance.

Have you ever been unable to supply your proof of insurance card when stopped by a police officer? Or, worse yet, have you rustled through your glove box and found it, only to discover it was expired?  These scenarios frustrate drivers around the United States every day. They’re fed up with the out-of-date paper-proof process. After all, if they can do their shopping, get through airport security and board a plane with their smartphones, why shouldn’t they be able to use smartphones to provide proof of auto insurance?

Thanks to the efforts of consumer advocates, state insurance associations, and some state legislators and regulators, more and more consumers can do just that. Some state legislatures are finally getting on board with paperless insurance technology and allowing companies to provide their policyholders with electronic ID cards. This technology allows the policyholder to take a picture of his or her Proof of Insurance card using the insurance carrier’s phone app. The photo is saved on the smartphone and can easily be displayed to any police officer asking for proof of auto insurance.

Needless to say, consumers love the convenience of digital proof of insurance. So far, seven states accept electronic proof of auto insurance: 

  • Alabama
  • Arizona
  • California
  • Colorado
  • Idaho
  • Louisiana
  • Minnesota

Digital proof of coverage is a hot topic with state legislatures and the insurance industry right now, and it’s long overdue. When smartphones, iPads and other insurance software is a part of everyday life, relying on a piece of paper to for proof of auto insurance is just plain old-fashioned.

Everybody wins

Converting to a digital proof of insurance system is a win for everyone involved. It saves your policyholders time, aggravation, and money. It saves carriers and/or insurance agencies the cost of printing and mailing ID cards to policyholders. And digital proof of insurance saves law enforcement and court personnel the time and expense of processing tickets written for drivers who have insurance but didn’t have their proof of insurance card with them.

Digital proof of insurance is another great tool you can use to provide better customer service. It’s an idea that’s time has come, and it just might be on your customers’ wish list. Want to know more? Find out if digital proof of insurance is on your state’s legislative radar. If it isn’t, get involved and lobby for change! Proof of insurance coverage is a great topic to share in your newsletter and Facebook page, and a great way “walk-the-talk” and show your clients that you’re watching out for them.

Want to know another auto insurance marketing idea that is hot NOW? Paperless Processing.

Consumers are increasing green-aware and they like to work with companies who share their values. Sign up to receive more information about the insurance industry’s hottest new digital agency management software – Agency Matrix Diamond.

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