Bill to create online motor vehicle insurance verification system wins support from insurers and police groups

Senate Bill 5864 would require the Department of Licensing to establish an accessible online motor vehicle insurance verification system and obligate insurers to provide policy information to that system. The committee heard broad support from insurers, law-enforcement representatives and county licensing agents on Jan. 22.

Brandon Popovac, committee staff, outlined the proposal, which authorizes the Department of Licensing (DOL) to contract with private vendors, pilot the system without enforcement for 12 months, and implement statewide verification of insurance at vehicle registration renewal beginning April 1, 2029. Popovac noted initial DOL implementation estimates of roughly $411,000 in the current biennium and ongoing costs of approximately $2.2 million in later biennia; he also said the fiscal note projects an indeterminate decrease in registration revenue from withheld renewals.

Senator John Lubbock, prime sponsor, said Washington trails other states and cited an estimate that 22% of motorists were uninsured in 2024; he argued verification would reduce uninsured rates and lower costs for responsibly insured drivers. Industry witnesses from Grange Insurance, PEMCO and others endorsed the bill, citing national studies tying uninsured-driver increases to higher premiums. Law-enforcement representatives said real-time verification would help officers confirm coverage on the roadside and reduce erroneous citations based on missing or fraudulent paper cards.

Implementation concerns were raised by licensing sub-agent and county-auditor witnesses who supported the policy intent but asked for adequate funding and time to build reliable real-time verification into counter and online transactions.

Why it matters: Supporters said the verification system would modernize Washington’s enforcement of existing liability-insurance requirements, reduce the burden of uninsured motorists on insured drivers and improve roadside certainty for officers.

What’s next: The committee heard pro and technical-implementation testimony and closed the hearing; staff recorded sign-ins and the bill will await committee action.