State's Largest Auto Insurance Company Joins DMV On-line Registration Program

    SACRAMENTO, Calif.--Aug. 9, 2001--The Director of the California Department of Motor Vehicles, Steven Gourley, announced today that California's largest vehicle insurer, State Farm Insurance, is verifying insurance coverage electronically on behalf of its 2.8 million customers.
    Earlier this year, three other major insurance companies, Farmers, Progressive, and The Hartford signed on to the program, which makes registration renewal easier and more convenient for vehicle owners. The program also allows drivers who are customers of participating insurance companies to register their vehicles on line with the DMV.
    "This program clearly demonstrates that government and private sector interests can work together to develop programs that make a tangible difference for customers," said Gourley.
    "It is another major step in Governor Gray Davis' E-Government program -- his commitment to do everything possible to enable Californians to handle as many Government-related transactions as possible from the comfort of their own homes at any hour of the day or night." Gourley added. "State Farm and other insurance companies have been assisting this department from day one, and the result is real achievement for California motorists."
    So why is this electronic program so important?
    California law requires every vehicle registration be accompanied by evidence of insurance. With more than 20 million vehicles renewed each year, the DMV has found it challenging and expensive to receive and adequately review the documentation presented for each vehicle.
    Gourley says the program is very cost-effective. "DMV will no longer have to review insurance information from more than a million vehicle owners each month. These companies are providing a real benefit to their customers who would otherwise be forced to make copies of documents for our review," he explained."
    So far, eight insurance companies doing business in California have joined the program, with another two, Traveler's and USAA, expected to be on-line in the near future. The first companies to take advantage of the service were the California State Automobile Association, the Automobile Club of Southern California, Mercury Insurance, and 21st Century Insurance. When all ten companies are on board, nearly half the state's vehicle owners will be able to take advantage of another program benefit: on-line registration.
    To handle that transaction, customers need only to log on to the DMV Website (http://www.dmv.ca.gov) and follow the prompts. Since the inception of the program in April 2000, some 300,000 vehicles have been renewed using the Website, with registration fees totaling approximately $55 million.
    "It's exciting and useful twenty-first century technology," said Gourley. `We really are trying to reinvent ourselves; if it's good for our customers, it's good for the DMV."