The West Virginia State Legislature has introduced House Bill 3028, aimed at establishing an electronic insurance verification program to enhance compliance with motor vehicle liability insurance requirements. Introduced on February 28, 2025, the bill seeks to address the growing issue of uninsured motorists in the state by creating a streamlined system for verifying insurance coverage.

Key provisions of House Bill 3028 mandate that insurance carriers cooperate with the Division of Motor Vehicles (DMV) to implement this verification system. Insurers will be required to provide accurate data regarding policyholders, and the DMV will develop an online platform to facilitate these verifications. The bill also includes measures to ensure data security and privacy, stipulating that information obtained through the system will be restricted to law enforcement and judicial use only.

Notably, the bill includes a provision for insurers to be immune from civil and administrative liability when acting in good faith to comply with the verification program. This aims to encourage participation from insurance companies, which may otherwise be hesitant due to potential legal repercussions.

Debate surrounding the bill has focused on concerns regarding data privacy and the potential burden on smaller insurance providers. Some lawmakers have expressed apprehension about the implications of mandatory compliance, particularly for smaller insurers with fewer than 500 non-commercial policies. In response, the bill includes alternative reporting methods for these smaller companies to ease their transition into the new system.

The economic implications of House Bill 3028 could be significant. By reducing the number of uninsured drivers, the bill may lead to lower insurance premiums for compliant drivers and potentially decrease the financial burden on state resources associated with accidents involving uninsured motorists. Additionally, the DMV is tasked with reporting back to the Legislature within two years of the program's implementation to assess its effectiveness and associated costs.

As the bill progresses through the legislative process, its potential to reshape the landscape of motor vehicle insurance in West Virginia remains a focal point of discussion among lawmakers, insurers, and the public. The outcome of House Bill 3028 could set a precedent for similar initiatives in other states, reflecting a growing trend towards digital solutions in regulatory compliance.