As part of the ongoing effort to reduce the number of uninsured motorists on Kentucky roadways, the Kentucky Transportation Cabinet, Division of Motor Vehicle Licensing, is contacting vehicle owners regarding their auto insurance information.
Monthly reports submitted by insurers indicate, on average, approximately 30,000 to 40,000 registered passenger vehicles that are potentially uninsured. In April 2008, as a pilot project in selected counties, the Division of Motor Vehicle Licensing began contacting registered owners of these vehicles by mail. This communication has already been implemented statewide.
About Uninsured Notices
If no record of insurance is matched to a registered vehicle’s Vehicle Identification Number (VIN), that vehicle is monitored by the Kentucky Insurance System for 30 days. In many cases, the absence of a match is due to policy renewal or changing insurance companies, and the transactions overlap reporting from the insurance companies. If an insurance record is received the following month, the monitoring on the specific VIN is stopped. But if no record of insurance is matched to the VIN for a second straight month, the registered owner will receive an Uninsured Notice.
Important: Recipients of an Uninsured Notice are given 30 days to respond/comply with the requirement of providing current proof of insurance. Failure to do so will result in cancellation of the vehicle’s registration.
Common reasons for receiving a Notice
In many cases, vehicles that actually are insured are erroneously identified as uninsured. There are multiple possible explanations:
- The VIN on the insurance policy, as reported by the insurance company, does not match the VIN listed in the Kentucky Insurance System;
- The type of insurance reported by the insurance company mistakenly indicates personal coverage rather than commercial coverage;
- The insurance company did not report the VIN as having current coverage;
- Also it could be due to the Clerk of your county of residence entering it into the system as personal when it should be military or commercial and this could be due to it being dealer work and they don't have to provide proof to the Clerk.
Read your Notice
The Uninsured Notice provides the vehicle owner with the registration information in the Insurance System, as well as whom to contact to correct an error. However you may be required to provide proof to the County Clerk's office. The Department of Motor Vehicle Regulation Customer Service Center and members of the Motor Vehicle Licensing staff will be available for assistance.
Kentucky law requires insurance companies registered with Kentucky to report all personal policies to the Division of Motor Vehicle Licensing once a month. This electronic report is a list of Vehicle Identification Numbers (VINs). If the VIN reported by the insurance company for a particular vehicle does not match the VIN on record with Motor Vehicle Licensing, the vehicle will be flagged as being possibly uninsured. Likewise, if a VIN is left off the report given by the insurance company, but still shows as a registered vehicle in Motor Vehicle Licensing's records, the vehicle will be flagged as possibly uninsured. This will cause an uninsured notice to be mailed to the registered owner requesting verification that the vehicle is insured.
What you need to do
If an individual finds that their VINs do not match, contact the County Clerk's office or the Division of Motor Vehicle Licensing prior to contacting the insurance company to resolve the issue. If the VINs do match, contact the insurance company to have them provide proof of insurance to the County Clerk's office, or the customer can also provide proof to the County Clerk.
Incorrect Classification of Policy Type
Kentucky requires insurance companies to report all personal policies once a month to the Division of Motor Vehicle Licensing, but insurance companies are only required to report commercial policies if there is a change in the policy. If a vehicle has a commercial policy but is incorrectly coded as a personal policy, the Division of Motor Vehicle Licensing will be looking for that policy to be reported each month. When it does not appear on the personal policy report (because it is commercial), the vehicle will be flagged as possibly uninsured. If an individual receives the uninsured notice and has a commercial policy for the vehicle listed on the notice, contact the County Clerk's office or the Division of Motor Vehicle Licensing to resolve the issue.
Owners of seasonal vehicles such as motorcycles or RVs are accustomed to dropping the insurance on these vehicles during the months they are not being driven. As long as the vehicle has a license plate, it is required by Kentucky law to maintain at minimum a liability insurance policy. To avoid penalties for a lack of insurance, the owners of these vehicles must turn in their license plate to the County Clerk's office prior to cancelling their insurance policy. When it is time to put the vehicle back on the road, secure proof of insurance and present the proof to the County Clerk. At that time, the clerk's office will allow registration of the vehicle.
Much the same as seasonal vehicles, owners of vehicles with Historic license plates sometimes drop the insurance while the vehicle is not being driven, but fail to surrender the license plate to the County Clerk's office. This will cause an uninsured notice to be mailed because the Division of Motor Vehicle Licensing has record of a registered vehicle without an insurance policy being reported each month. To avoid any penalties for a lack of insurance, turn in the license plate to the County Clerk's office prior to cancelling the insurance policy. When the time comes to get the vehicle back on the road, present proof of insurance to the County Clerk's office and the vehicle can be registered.
When an individual sells a vehicle, whether to another individual, dealership, or scrap yard, the title is not transferred out of the seller's name until the buyer goes to their County Clerk's office to apply for a title in their name. It is common for a seller to receive an uninsured notice for a vehicle that has been sold. This is because the buyer has not completed the transfer of ownership, which is required by Kentucky law to take place within fifteen (15) days of the purchase. The Division of Motor Vehicle Licensing will show the seller as owner of the vehicle until the buyer makes application for title. This situation is known as an incomplete transfer and can be taken care of at the County Clerk's office.
Active Duty Military
Active duty military personnel are able to use out of state insurance to title and register any vehicle titled in their name here in Kentucky. When registering a vehicle, if it is recorded as a standard personal policy at the County Clerk's office rather than a military personal policy it will cause the vehicle to be flagged as being possibly uninsured. This is due to the insurance company not being required to send the Division of Motor Vehicle Licensing a report of insured VINs each month. The Insurance System will not find a match because Kentucky does not require active duty military insurance policies to be reported each month. If you are currently on active military duty and you receive an uninsured notice letter, show proof of your active military service (pay stub, ID) to the County Clerk's office to resolve the issue.
Who to Contact
The Uninsured Notice provides the vehicle owner with the registration information in the Insurance System, as well as whom to contact to correct an error. The Department of Motor Vehicle Regulation Customer Service Center and members of the Motor Vehicle Licensing staff will be available for assistance.
When calling the Division of Motor Vehicle Licensing at 502-564-1257 regarding an Uninsured Notice, you will need to make three menu selections to ensure your call is routed properly.
- Select Option 3 for the Division of Motor Vehicle Licensing, then
- Select Option 2 for Registration & Mandatory Insurance, then
- Select Option 2 for Mandatory Insurance.