Could pink slips become a thing of the past?

For drivers who have found themselves frustrated by the existence of pink slips, you're not alone. New recommendations outlined in a report from the Insurance Bureau of Canada (IBC) included moving towards digital proof of auto insurance. 

"Ontario drivers are very supportive of digital documents," said Kim Donaldson, Vice-President, Ontario, IBC.  "We use our mobile devices to get on airplanes and buy our coffees. Why can't we use them to display our proof of insurance?"

Why is physical proof required? 
In 2000, the Electronic Commerce Act was passed in Ontario giving digital documents the same legal protections as physical ones. Despite that, other acts still override those permissions, including the Insurance Act which requires all Ontarians to have a physical proof of insurance, or a pink slip, in their glove box at all times. Regulations also require that companies mail policyholders a hard copy of their policy details every year. 

Precedent for going digital 
Nova Scotia recently announced that it would allow drivers to carry digital proof of insurance. In the United States, there are only three regions that still require physical documentation, according to CarInsurance.com.The benefits of accepting a modern type of verification are drivers no longer have to change out expired documents and policy information will always be up-to-date since it can be pulled directly from an insurer's website as needed. 

The switch also benefits insurers since fewer agents are needed to file papers and mail documents if everything is handled online. In the quest to update the insurance industry as a whole, embracing new technology is at the forefront of discussion. 

Opinion of Ontario Residents 
The majority of Ontarians already receive bills electronically and are confident in the safety of digital communication, determined a recent IBC poll. Nearly three quarters of those surveyed would like to receive insurance papers straight to their phone or email and believe the process would be more convenient than the current one. It's clear that the majority of citizens support a move away from pink slips and towards electronic verification.

Final Recommendation 
The final recommendation of the IBC was the Insurance Act be amended to explicitly allow insurance companies to communicate virtually with their clients including sending cancellation notes, proof of insurance, and policy information.

It remains to be seen if the suggestion will be adopted, but in the meantime, we can learn from Nova Scotia as they roll out new policies.