Drivers pay $50 fine even though they have insurance

Tuesday, Dec. 10, 1996 | 11:59 a.m.

CARSON CITY -- Thousands of Nevada drivers are being notified each month that they don't have auto insurance, and some end up paying $50 fines even though they are fully covered.

"It's ripping off the public," said Carolyn Rondthaler of Las Vegas, one of those victimized by the program to identify those without insurance.

The state Department of Motor Vehicles and Public Safety is sending close to 7,000 registered letters every month, telling motorists their insurance has lapsed. The owners are required to return prepaid postcards with additional information to the agency, which then conducts further study to see if mistakes have been made.

Those who fail to return the postcard are fined $50, even though they may have insurance. The fine is $250 if the insurance policy has lapsed.

Rondthaler said she put her postcard in the mail, but the state agency says it never received it. She did not send it certified mail.

Rondthaler appealed her case but lost when a hearing officer ruled there was no evidence she mailed the postcard. She battled the bureaucracy for more than a year before giving in and paying the $50.

She said she had insurance on her vehicle all of that time.

"What proof do they have that I didn't respond?" she asked. She said the state's notice "makes you feel like a criminal."

Gordon Absher, DMV public information officer, said it is not an indictment but merely a request for more information that may lead to clearing up the errors.

Rondthaler complained that after she sent in the postcard, she was taken ill and left the area. Absher said the department will grant a waiver if a person has left town for medical or other reasons when the notice is sent.

Absher acknowledges that mistakes in the program have created a serious issue. In fiscal year 1996, the agency collected $10,375 in reinstatement fees, but he said there is no way to break down how many paid the $50 fine and who shelled out the $250.

The agency's old computer can't tell how many uninsured motorists are traveling Nevada highways, but Absher concedes it can't be as many as 7,000.

"We hope to see some improvements in the coming months," Absher said. "We want to be less of a nuisance for the law-abiding citizen and more expedient in catching uninsured motorists."

Every month, about 300 insurance companies send the DMV a list of their policyholders who have canceled, whose coverage has lapsed and who has purchased new policies. This is then matched by the computer against car registrations.

Errors can occur in a number of ways. The vehicle identification number on the auto registration may not match the one on the insurance policy. A person who registered his car by the first name of "Richard" may be identified as "Dick" on the insurance policy. The policy may be made out to the wife but the title is in the name of the husband.

There may be misspellings due to human error either on the policy or on the vehicle registration certificate. All of these can prompt a letter from the state telling the car owner there's no proof of insurance.

"We're bothering a lot of people who have insurance," Absher said, but he added that the individual still has to return the postcard with the information or face a fine.

Absher said residents could use the toll-free number of (800) 344-0483 to call the agency from 6 a.m. to 10 p.m. to try to clear up discrepancies. But he said the postcard must be returned or the vehicle owner will face the $50 penalty.

He said sometimes motorists don't change their addresses, as required on their registration certificate. Notices of possible insurance violation go to the old address. He said the law requires that a motorist change the address on the registration certificate within 10 days of moving.