“Pro-Consumer Auto Insurance Bill” Co-Sponsored by Rep Marcell, Now Law

A bipartisan supported measure designed to protect consumers who change auto insurance carriers was recently signed into law.

Act 3 of 2026 requires the Pennsylvania Department of Transportation to create an online verification system to modernize its processes for ensuring motorists are carrying insurance on their vehicles, as required by law.

Representative Kerry Benninghoff  (R-HD 171) the new laws prime sponsor explained when introducing the bill last year,  when a driver cancels their car insurance within six months from the original issue date, the insurer is required to report the cancellation of the policy to PennDOT. However, there is no requirement for an insurer to notify PennDOT when a driver acquires a new car insurance policy. This causes PennDOT to send a written notice to those who have changed their policy that requires response with proof of insurance, or their vehicle registration will be suspended for three months.

“As I’m sure you are aware, it is all too common for constituents to never receive or misplace these notices from PennDOT for a multitude of reasons, which can lead to canceled registrations when no lapse occurred,”  Benninghoff  said.

Under prior law, insurance companies would notify PennDOT when an auto insurance policy was canceled, but companies were not required to notify PennDOT when a driver acquires a new policy. If vehicle owners missed written notification from PennDOT to provide proof of insurance, those vehicle owners were then saddled with a three-month suspension.