Californians who operate their vehicles without auto insurance can now have their vehicle registrations suspended as part of Senate Bill 1500, designed to reduce the risk of economic losses sustained as the result of collisions involving uninsured motorists.

The legislation, signed in 2004 by Gov. Arnold Schwarzenegger, requires the Department of Motor Vehicles to notify a customer about possible vehicle registration suspension if their insurance company fails to provide proof of insurance within 30 days of a vehicle's initial registration with the department, or within 45 days once DMV has been notified by an insurance carrier about a policy cancellation or change in coverage.

"This new law is intended to protect Californians by reducing the number of uninsured vehicles on our roads," said Sunne Wright McPeak, secretary of the Business, Transportation and Housing Agency. "Each year thousands of collisions occur involving uninsured vehicle owners."

"SB 1500 requires insurers to electronically transmit insurance verifications to the DMV, and it directs the DMV to notify a vehicle owner if the vehicle is not insured," said George Valverde, director of the state Department of Motor Vehicles. "Beginning Oct. 1, we'll be in a position to identify vehicles that are uninsured and begin the process of notifying motorists of the need to get their vehicle insured."

The initial provision of SB 1500, which took effect Jan. 1, requires that insurance companies doing business in California electronically report all private-use vehicle liability policies, with the exception of trailers, off-highway vehicles or boats, to the DMV, both when a policy is issued and/ or cancelled.

Since July 1, law enforcement agencies have been able to electronically verify if any private-use vehicle is properly insured by accessing the department's vehicle registration database. DMV statistics show there are more than 23 million licensed drivers in California who operate almost 30 million vehicles.

DMV statistics also show that 1.4 million drivers have been convicted since 2001 for driving without proper insurance coverage, and 78,000 drivers were convicted for failing to have liability insurance when involved in a collision.

The tollfree number customers must call to reach a member of the Vehicle Registration Financial Responsibility Program is (866) 664-4545. Once a vehicle registration has been suspended, customers must submit evidence of a valid vehicle insurance policy and pay a $14 reinstatement fee before a registration can be reinstated or renewed.