Two years ago, lawmakers ordered up a system to bust the millions of Texas residents who drive illegally without auto insurance. They're still waiting, and insured motorists are still paying big bucks to insure themselves against the scofflaws.
Although a contractor has been selected to operate the new auto insurance verification program, officials said the database needs more fine-tuning and now won't be launched until 2008.
The delay stems from concerns about the mountain of data required for the program and worries that people could be ticketed or even arrested because of inaccurate information.
The program, funded with a $1 fee paid by all Texans when renewing their registration each year, is aimed at catching uninsured drivers by allowing police officers, state troopers, vehicle inspection stations and others to instantly verify whether a motorist has the minimum insurance coverage required under state law.
About 20 to 25 percent of Texas drivers are uninsured, according to state officials and the insurance industry.
State Agriculture Commissioner Todd Staples, who authored the legislation when he was a state senator in 2005, expressed disappointment that it has not yet taken effect. But if there are still glitches in the system, he added, it is better to delay the startup.
Numerous lawmakers have said one of the most frequent complaints they hear at town hall meetings is about the large number of uninsured drivers in Texas and the extra cost they represent for the majority of drivers who buy insurance.
The insurance industry estimates that Texas drivers shell out nearly $900 million a year to protect themselves against those without coverage.
Although Texas has had a law requiring drivers to buy insurance for years, enforcement has been difficult even though proof of insurance must be furnished to get a license renewal or safety inspection. The policy must contain liability coverage to pay for injuries and damage caused by the driver.
Millions of motorists skirt the law by using counterfeit proof-of-insurance cards or by obtaining a month's insurance coverage to get an ID card, only to cancel the policy once they get their licenses renewed or their vehicles inspected.
Those plans are expected to get a boost once the state verification program is operating.
The state program is being coordinated by the Insurance Department along with the departments of Public Safety, Transportation and Information Resources, which are exploring how to best use the data to enforce the law. In some states, for example, uninsured drivers receive written notice from the state giving them a certain amount of time to buy coverage to avoid penalties.
HDI Solutions Inc., an Alabama-based firm that specializes in data management, was awarded a contract from the state in November to set up the verification program. The company, which will partner with three other high-tech firms, is being paid $7 million over two years to get the program running. HDI operates a similar program in Alabama.
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