According to the Independent Insurance Agents and Brokers of Arizona the senate bill 1165, which has been authored by Representative John Kavanagh, has been drafted to identify vehicles that have not reported the accurate vehicle identification number to the motor vehicle department of Arizona. The IIABA estimates that there are at least around 200,000 vehicles in the state that have not reported their accurate vehicle identification numbers. Though this is a small percentage as compared to the total number of vehicles in the state, the IIABA states that the number is significant enough to create ripples if the bill comes into effect. This Senate bill is due for hearing on Wednesday, in front of the House Appropriation Committee.
Russell Reiten, IIABA’s government affairs representative, said that their organization does stand by the state in terms of enforcing the liability insurance for drivers, but the large number of incorrect vehicle identification numbers has created a major problem. The IIABA also states that there are instances where customers end up giving an incorrect 16-digit alphanumeric code to their insurance agents during the time of availing the insurance policy. There are also times when the insurance agent notes down the number incorrectly and gives these details to the department as well incorrectly. Now if the particular vehicle is towed based on the incorrect number reported and the vehicle owner does have a valid insurance policy, then the driver can sue the department for the error. The cards that show the proof of insurance is given to the drivers, however, in case the wrong VIN is reported, then the driver does not get the card or the card that issued will have an incorrect validity date mentioned on it.
According to the current stipulations of the law, the drivers who have reported the wrong VIN have to only show proof of insurance in case a citation is issued. Reiten said that in case the bill drafted by Kavanagh is passed, then the law enforcement officials will be given the permission to tow the vehicles and the drivers who have been wrong will not have the right mechanism to recoup their expenses.