The final step began in October 2006. The DMV can now suspend the registration of any vehicle if the liability insurance has expired, been cancelled or if the insurance company has not provided electronic proof of insurance for a driver's vehicle.
The DMV has already mailed thousands of letters to car owners warning them that their registrations may be suspended if they can't prove they have auto insurance. The DMV will also review information on the 22.4 million private vehicles registered in the state. The DMV will cross-check records of registered car owners in a database of insured vehicles that's updated by insurance companies. If the program works as planned, California drivers should have greater assurance that the car next to them is properly insured.
About the Author: Carl H. Starrett II has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. Starrett practices in the areas of bankruptcy, business litigation, construction, corporate planning and debt collection.