Idaho Car Insurance Laws: Minimum Coverage, Penalties and SR-22

Every owner of a vehicle registered and operated in Idaho must continuously carry liability insurance from a company licensed in Idaho of at least $25,000 for injury or death of one person, $50,000 for injury or death of two or more people in one accident, and $15,000 for property damage (25/50/15). Instead of a policy, an owner may post an indemnity bond with the Director of Insurance (at least $50,000 per accident, including $15,000 for property damage, per vehicle, up to $120,000 for five or more vehicles) or hold a certificate of self-insurance.

Idaho is an at-fault (tort) state: the required coverage is liability insurance against loss resulting from liability imposed by law for injury, death or property damage caused by use of the vehicle. The Alabama Department of Insurance's national list places Idaho among the "Tort States."

Auto liability policies on vehicles registered or garaged in Idaho must include uninsured and underinsured motorist coverage at the bodily injury liability minimums, unless a named insured rejects either or both in writing (or in an electronic record); a rejection applies to all insureds and carries over to renewals or replacements with the same insurer or an affiliate. Before a new policy is issued (and at the first renewal of policies effective on or after Jan. 1, 2009), the insurer must give the named insured a standard, Director-approved statement explaining UM and UIM coverage and the forms of UIM available.

A certificate or proof of liability insurance must be in the driver's possession or in the vehicle whenever it is driven, and shown to a peace officer on request; it may be paper or electronic (on a phone or other portable device). A driver is not convicted if, before conviction, they produce proof that coverage was in effect at the time. Insurers must give a free certificate of insurance on purchase, renewal or request. Owners certify insurance when registering, and the Idaho DMV verifies insurance electronically through its "Drive Insured" online verification system.

Driving without required insurance, or without proof of insurance in the vehicle, is an infraction with a $75 fine for a first violation; a second or later conviction within five years is a misdemeanor punishable by a fine up to $1,000, up to six months in county jail, or both. Under the Drive Insured program, an owner whose vehicle shows no insurance for two consecutive months gets a warning and 30 days to provide proof or an exemption before the registration is suspended; reinstatement requires proof of insurance and a $75 fee. An owner who stops carrying insurance must surrender the registration and plates and may not drive the vehicle until insured and re-registered.

After a private passenger policy has been in effect 60 days (or if it is a renewal), an insurer may cancel or refuse to renew only for listed reasons, including nonpayment, material misrepresentation, violation of policy terms, failure to disclose accidents, violations or losses from the prior 36 months, a false or fraudulent claim, a license suspension or revocation within 36 months of the named insured or a household or regular driver, certain medical conditions, certain convictions within 36 months (any felony, DUI, vehicular homicide or assault, leaving the scene, vehicle theft, fraudulent license application), three or more point-carrying violations within 36 months, or certain vehicle conditions or uses. Cancellation requires at least 20 days' notice (10 days for nonpayment, with the reason). Nonrenewal requires at least 30 days' advance notice. If the reason is not stated, the insured may request it in writing. Cancellation (other than for nonpayment) and nonrenewal notices must mention possible eligibility for the assigned-risk plan.

Idaho does not use a fixed percentage: a "salvage vehicle" is one that has salvage documentation, or that is damaged to the extent the owner or insurer determines the cost of parts and labor minus salvage value makes it uneconomical to repair, or for which an insurer has paid a total-loss settlement. A "total loss" occurs when an insurer or anyone else pays the owner because the vehicle is deemed uneconomical to repair. A salvage certificate is issued for any salvage vehicle (and for theft-settled vehicles acquired by an insurer) and replaces the title as the ownership document; an insurer or salvage pool that acquires a total-loss vehicle must apply for the salvage certificate before resale. A repaired salvage vehicle becomes a "rebuilt salvage" vehicle.

For a private-party sale with no lienholder, the buyer must file the titling documents with a county assessor's motor vehicle office within 30 days of the transfer to avoid a $20 late-filing penalty: the existing title signed off by the previous owner (and lienholder, if any), an odometer disclosure for vehicles newer than 2010 under 16,000 lbs, a VIN inspection if the vehicle comes from another state or has never been titled in Idaho, and the applicable fees. If a properly released title cannot be obtained, a bill of sale may be used with additional steps. Idaho dealers must file the title application within 30 days of delivery. Sellers can file an online Release of Liability with the VIN and title number.

New residents must get an Idaho driver's license or ID card within 30 days of moving to Idaho (students at Idaho colleges and active-duty military and dependents with valid out-of-state licenses are exempt), and must title and register their vehicles within 30 days of moving. A DMV employee inspects the vehicle identification number (VIN) when the vehicle is titled; bring the current title and registration (or lienholder information), a bill of sale if the price is not on the title, and identification. Liability insurance must be with a carrier admitted in Idaho. DMV offices are run by county sheriffs and assessors.

First try to resolve the matter with the insurer or agent. Then file a complaint with the Idaho Department of Insurance, Consumer Affairs, preferably online through its "File a Consumer Complaint" page. Phone (208) 334-4250 or toll-free in Idaho (800) 721-3272. Do not file a second complaint on the same matter; call instead. Warranty complaints go to the Idaho Attorney General.