Most states require drivers to have insurance coverage (i.e., an auto ID card as proof). However, some states require the insurance company to provide this evidence. This is accomplished through electronic reporting to the various motor vehicle departments. While many states mandate vehicle reporting for personal line policies, auto reporting is also required for commercial line policies in some of these same states.
Depending on the state's requirements, reporting may be necessary at either the policy level or the vehicle identification number (VIN) specific level. For VIN-specific reporting, the information required includes the VIN, make, year and sometimes the exact vehicle registrant's name and address. This information is sent to the Department of Motor Vehicles (DMV) in various ways, such as electronic files and spreadsheets, with reporting frequencies ranging from daily to monthly. Additionally, some states offer web services with real-time processing. Ultimately, this reporting is subject to strict timeliness and data quality measures.