There are currently five states that require pre-insurance (photo) inspections. The states requiring a pre-insurance inspection with photos are: New York, New Jersey, Massachusetts, Rhode Island and Florida.

CarInsurance.com carriers have a process setup in Florida, New Jersey and New York to get your vehicle inspected if necessary. You will be notified of the requirement while purchasing your policy (if required) or when you get your documents. You will be given a choice of locations (usually up to 5) in your area to get the inspection completed.

New York was the first state to pass legislation requiring vehicles with physical damage coverage, including fire, theft, collision or comprehensive coverage to be inspected by a representative of the insurance provider before an auto insurance policy is issued. This Insurance Reform Act of 1977, also known as Regulation 79, was the first of its kind in the US and though to be ground breaking. The goal was to reduce auto insurance costs by helping crack down on fraudulent claims. This can include phantom cars from being insured, damage claims from being exaggerated as well as claims being presented for pre-existing damage.

New York’s photo inspection law was successful in reducing the number of fraudulent car insurance claims so both New Jersey and Massachusetts follow suit and put in place their own pre-insurance inspection programs. Florida next added in an inspection program for cars being insured with physical damage coverages, then Rhode Island and finally California put inspection laws in place. The Canadian Province of Ontario also has mandated a physical damage inspection program as part of their Insurance Act.

State mandated vehicle inspection is designed to verify and document the existence of a motor vehicle, as well as its condition and existing options. The primary goal of the inspection process is to help lower the cost of insurance coverage for physical damage by reducing opportunities for fraudulent claims.

When state laws require photo inspections there are normally at least 3 color images that are required to be produced. Photos need to show the rear and passenger side and then the front and driver’s side of the vehicle. A picture should also be taken of the VIN number, which should be located inside the driver’s door post. Most only verify the VIN matches the registration or title. Inspection inspectors may take additional photographs of area they deem to be of importance.

In New York a completed report and the photos are then sent to a central database, such as CARCO. CARCO is one of the major vehicle inspection services in the United States. Their database checks the authenticity of the VIN to make certain that the vehicle inspected and the VIN match. This is one way in which a state checks for stolen vehicles since any disparity in the VIN verification process means further inspection into the car will be needed.

There are those agencies out there that are pushing for a pre-insurance inspection to be mandated by all States. For instance Insurancefraud.org has a model pre-insurance inspection bill available that they hope states will use to push through legislation for these inspections to that insurance fraud can be reduced. Some insurers on their own require inspections, without state laws mandating it, however if legislation is in place it will require all insurers to have a pre-insurance inspection process in place.

With this model legislation, and with current state laws in place, there are exceptions. So under some conditions an inspection will not be required. Some conditions can include:

• Vehicles already insured for either collision or comprehensive coverage;
• Vehicle purchased new from a retail dealership;
• Insureds who have been continuously covered by the same insurer for a year or more.

In Florida it is Statute 627.744 that requires pre-insurance inspection of private passenger motor vehicles. Under this FL law a private passenger motor vehicle insurance policy providing physical damage coverage, including collision or comprehensive coverage, may not be issued unless the insurer has inspected the motor vehicle. This FL statute does have many exceptions. A few of these exceptions where an inspection is not required include:

• A policyholder who has been insured for 2 years or longer, without interruption, under a policy which provides physical damage coverage. This is if the agent of the insurer verifies the previous coverage;
• A new, unused motor vehicle purchased from a licensed motor vehicle dealer or leasing company, provided that the insurer is provided specific information such as the bill of sale, etc;
• A vehicle that is 10 years old or older;
• Any renewal policy;
• When an insurance producer is transferring a book of business from one insurer to another.

Though there are these exceptions subsection (3) of this FL law notes that this statute does not prohibit an insurer from requiring a pre-inspection of any motor vehicle as a condition of issuance of physical damage coverage.

In Ontario the pre-insurance inspection became required under certain circumstances in 1997. According to the FSCO in Ontario the person carrying out the inspection will note the make, model, model year and VIN plate number of the automobile. The person will also note any existing damage and whether the automobile has any after-market accessories such as stereo systems or whether any modifications have been made to the automobile. Three photographs of the automobile will be taken, two angular photographs showing the front, rear and both sides of the automobile as well as one photograph of the compliance label affixed to the automobile by the manufacturer.

If an insured is unable to have the automobile inspected within the mandated 10-day time frame, the insurance company should be contacted. If an insured fails to make alternate arrangements, the insurance company may deny claims under the optional property damage coverage. It is likely that the insurance company will cancel optional property damage coverage if an inspection is not carried out within the 10-day time frame and the insured has not made alternate arrangements with their insurer to have the vehicle inspected.

In the US when an insurer or state requires a pre-inspection within a certain time period and the person fails to have the car inspected the same usually happens, the person’s physical damage coverages are canceled. For example the NYS Department of Insurance notes that failure to comply with mandatory inspection requirements will result in a suspension of physical damage coverage for the period of time that the vehicle remains uninspected.

To find out about a specific state's insurance laws, specifically any pre-insurance photo inspection, contact that state's insurance regulatory body.