Oklahoma Temporary Motorist Liability Plan

Governor Mary Fallin signed HB 1792 into law on April 29th, 2013, also known as the Oklahoma Temporary Motorist Liability Plan.

The Oklahoma Temporary Motorist Liability Plan will provide minimum vehicle liability insurance coverage for the payment of loss resulting from the liability imposed by law for bodily injury, death and property damage sustained by any person arising out of the ownership, maintenance, operation or use of a vehicle when a citation is issued and the vehicle license plate has been seized.

“We simply cannot afford uninsured driving in our state any longer,” said Insurance Commissioner John Doak. “Not only does it raise auto insurance rates for all Oklahomans, but if an uninsured driver hits your car, the costs could cripple you financially. We must put an end to this serious problem.”

“Unfortunately, right now, the fine for driving uninsured is less than the cost of insurance,” said Doak.

Coverage shall only be provided by the Oklahoma Temporary Motorist Liability Plan from the time period beginning when the citation is issued and the vehicle license plate is seized until the owner of the vehicle either obtained documentation from the Department of Public Safety showing the owner of the vehicle has secured for the payment of loss resulting from the liability imposed by law for bodily injury, death and property damage sustained by any person arising out of the ownership, maintenance, operation or use of the vehicle meeting the minimum vehicle liability limits, or provides proof of insurance.

A daily cost for the insurance will be established. The daily cost of coverage shall be paid to the county sheriff’s office and the fine and fees associated with the traffic ticket shall be paid to the court clerk. The daily cost of coverage shall be calculated on each twenty-four-hour period from the time the citation was issued. Sherriff's officers will not be allowed to exempt anyone from the premiums.

In addition to fines for failure to comply with insurance laws and daily forced placed insurance costs there will be a $125.00 fee in order to retrieve the license plate back from the sheriff's office.

Around 25 percent of Oklahoma motorists are uninsured, according to Chuck Mai, Oklahoma AAA Vice President.

An evaluation by the Oklahoma Insurance Department found that approximately 563,692 vehicles in Oklahoma are uninsured, resulting in an $8.8 million dollar loss for the state’s General Revenue Fund and Police and Firefighter Pension Funds.

AAA is part of an Insurance Department task force with other industry representatives to examine the problem of uninsured drivers in the state.

Uninsured drivers also boost the cost for insurance premiums for other drivers, Mai said.

Rates can be affected depending on the number of accidents involving uninsured drivers in a certain geographic area, he said.

“Our rates are certainly higher than if everyone had insurance,” Mai said. “If you are struck by an uninsured driver, it is difficult to collect on any damages to your vehicle. Consequently, your insurance rates will typically rise, and those of the entire pool can rise as well.”