Iowa Senate Bill SF213

Iowa 2023-2024 Regular Session

• Introduced: 2/6/23
• Refer: 2/6/23

Caption

A bill for an act relating to automobile liability policy incentives for persons who install a speed governing device on an insured automobile.(See SSB 1182.)

Impact

The implications of SF213 include a potential decrease in automobile accidents and related insurance claims. By discouraging reckless driving behavior through technological means, the bill may contribute to safer roads in Iowa. Insurance companies could benefit from reduced claims linked to high-speed collisions, which might offset the financial impact of not raising premiums for those who comply with the installation requirement. The bill thus positions itself as a measure to foster both public safety and economic stability within the insurance sector.

Summary

Senate File 213 (SF213) introduces new regulations regarding automobile liability insurance policies in Iowa, specifically incentivizing the installation of speed governing devices. The bill mandates that insurance companies cannot increase premiums or decrease services for customers who install such devices, as long as they provide proof of installation. This incentive aims to promote safer driving habits by encouraging drivers to equip their vehicles with technology that limits speed. The legislation defines a 'speed governing device' as one that prevents a vehicle from exceeding 80 miles per hour.

Contention

Notably, there may be contention regarding the effectiveness of speed governing devices, as some critics might argue that technology alone cannot ensure driver safety. Discussions could revolve around whether the benefits of such devices justify imposing restrictions on insurance practices. Concerns may also arise regarding enforcement—how insurers would verify the installation of such devices and ensure compliance during claims processing. These potential issues highlight the complexities that accompany the implementation of SF213.