Delaware Confiscates Plates From Uninsured Vehicles

Delaware government tracks private insurance activity and confiscates license plates of those accused of being uninsured.

Delaware Insurance Commissioner Matt Denn held an event yesterday touting the state's use of agents who confiscate license plates belonging to anyone the commission's database says is uninsured. "I am committed to reducing the number of uninsured vehicles on the road, in part by warning the owners of those uninsured vehicles that we will take their license plates," Denn said in a prepared statement.

Last June, lawmakers enacted a provision granting insurance commission agents the authority to mail a letter to the registered owner of any vehicle the computer database believes is uninsured. Seven days later, if the owner has not proved his innocence, the agents will attempt to locate the vehicle and take its license plates. Each time, the state will collect substantial fines for the retrieval of the plates.

The state determines whether a particular vehicle is "uninsured" by monitoring the policy status of every resident. Insurance companies must notify the Department of Motor Vehicles (DMV) whenever a policy lapses. The DMV must also randomly audit ten percent of the state's drivers. Anyone being red-flagged by the computer is sent a warning letter. If the owner is unable to respond within 30 days because he is on vacation or the notice is lost in the mail, he is automatically declared "uninsured" regardless of whether he carries insurance or not. The penalties for being declared uninsured include the cancellation of the motorist's registration, for which the DMV is able to collect a restoration fee of $150, plus an additional $5 dollars a day for every day after a 30-day period has elapsed.

Source: http://www.thenewspaper.com/

Tags: Delaware DUI |  Insurance / SR-22