Electronic Proof Of Insurance & Digital Pink Slips

Oct 11, 2017

Digital Proof Of Insurance

Electronic proof of insurance is something that has been debated in Ontario for some time, and it's about to become a reality. Insurance pink slips will soon become a thing of the past, and drivers in Ontario will finally be able to show proof of insurance using their mobile phone.

When Will Electronic Proof Of Insurance Come To Ontario?

As part of the 2017 Ontario provincial budget, the government announced changes to rules about how drivers can show proof insurance. The new rules will now allow drivers to show proof electronically using their mobile phones rather than having to produce their pink insurance card.

Why Electronic Pink Slips?

Being able to get proof of insurance online is something drivers have wanted for some time. With technology more prominent than ever, it is the next step forward. Consumers are using their mobile devices to make payments, scan reward cards, to gain access to events, and showing proof of insurance fits with this usage pattern.

"eSlips would eliminate the need for traditional paper pink slips, representing a significant step forward in workflow efficiency for the insurance industry and meeting the expectations of today's evolving customer," CSIO said on its website.

Digital Insurance Pink Slip

"Nearly half of Canadian consumers have expressed an interest in receiving their proof of auto insurance electronically", said Catherine Smola, president and CEO of CSIO. "By leveraging the pervasiveness of digital wallets, the CSIO eSlips solution will provide consumers with the option of receiving their proof of auto insurance in digital form."

Digital pink insurance cards also solve the issue of drivers not being able to show proof of insurance because they forget their paper pink slip at home, saving them from getting a ticket unnecessarily.

Discount For Electronic Proof Of Car Insurance

As part of the new electronic proof of insurance rules in Ontario, the government is requiring insurance companies to offer a discount to drivers who opt to use electronic proof of insurance. Expect convenience and cost savings in the near future.

How Electronic Proof Of Insurance Works

While the process for how the new electronic proof of insurance rules will work is still unclear, the government is currently working on a solution that will work for drivers, insurance providers and police. A printed copy of proof of insurance sent via email or an electronic copy accessible through a digital wallet are options being considered. Electronic proof of insurance is expected to begin by the end of 2017.

The Current State Of Electronic Proof Of Insurance In Canada

Compared to the United States, Canada is far behind when it comes to the use of electronic proof of insurance. The Property Casualty Insurers Association of America (PCIAA) reports that 43 states have legislation in place permitting some form of electronic proof of auto insurance. Currently, no Canadian provinces have electronic proof of car insurance.

Electronic Proof Of Insurance

While many assume that all provinces need to do is digitize pink insurance slips, not all provinces use them. In B.C., Manitoba, and Saskatchewan, minimum insurance is secured through the province and is combined with registration.

Quebec uses an insurance certificate system; however, this document can be sent via email, making them the most modern of the provinces for offering electronic proof of coverage.

Another issue that has prevented Ontario and other provinces from moving forward is the perception that electronic delivery of insurance pink slips could create additional security and fraud concerns.

Fighting Fraud And Fake Insurance Slips

While some argue that electronic proof of insurance could lead to additional instances of insurance fraud, paper pink insurance slips can be duplicated and manipulated just as easily. Technology solutions such as electronic proof and secure delivery of authentic insurance cards can help minimize fraudulent use of proof of insurance cards.

“The paper insurance card is quite susceptible to fraud. Police officers have no way to validate whether a pink slip provided by a driver is valid and unexpired, and therefore are inclined to just accept it,” says Willie Handler on Insurance Blogs.

This situation commonly leads to a problem where some high risk drivers cancel their policy after they get their pink slip, giving them the ability to show the police proof of insurance when they don’t actually have valid insurance. The driver cancels or defaults on payment and doesn’t actually have coverage, but the police do not have a way of verifying coverage unless they call the insurance provider. Electronic proof will help stop this type of fraud from occurring.

Read more: Car Insurance Fraud in Ontario – Learn How It Works and How To Avoid It

Benefits Of Electronic Proof Of Insurance

Electronic Pink Slips For Car Insurance

Being able to access your insurance pink slip electronically simplifies this aspect of insurance :

  • Eliminates paper proof : Eliminates the need for the current paper pink insurance slips.
  • Better access : Insurers and brokers can send proof of insurance to consumers electronically.
  • Digital proof : Consumers can use their phone to show proof of insurance.
  • Minimize tickets : It can reduce the number of tickets issued for failure to show proof of insurance.

Overall, it solves the current issues with drivers losing or forgetting proof of insurance cards and can help avoid unnecessary fines and tickets.

Electronic Proof Of Insurance Concerns

No new insurance rules are without concern. In a recent report titled Electronic Proof of Automobile Insurance Project by Canadian Council of Insurance Regulators, there are a number of concerns about implementation and the execution of electronic insurance cards :

  • Will electronic proof be applicable to all classes of vehicles?
  • What measures will be taken to prevent fraud?
  • What will happen if police question the validity of electronic proof of insurance?
  • Will police be allowed to access other information on your device when checking proof of insurance on a digital device?
  • What happens if your device malfunctions or the battery dies?
  • Who is responsible if a driver's mobile device is damaged during inspection?
  • How does electronic proof work when allowing third parties to drive your vehicle?

These are all questions that are up for debate and will need to be worked out before electronic proof of insurance is officially introduced in Ontario.

Here Are Some Other Articles You May Be Interested In

What Drivers Need To Know About Showing Proof Of Car Insurance In Ontario
Car Accident Reporting And What Do After You've Been In An Accident
A Guide to the Ontario Graduated Driver's Licensing System
What Are The Cheapest Cars To Insure?
Commuting In Canada : Stats, Facts, Tips On Commuting In Canada
A Simple To Follow Guide For How To Buy A Used Car

<<Car Accident Insurance Scams
Learn About Home Insurance Premiums>>

ThinkInsure Logo, Ontario Insurance Broker