P&C Reporting Challenges Part 2: Automating ALIR to State DMVs

February 4, 2026 / 3 min read

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Compulsory reporting and notice distribution place a heavy burden on property and casualty (P&C) insurers. This multipart series highlights core challenges insurers must address and innovations that help reduce the strain of these labor-intensive activities.

In Part 2 of the P&C Reporting Challenges series, we examine strategies to automate electronic auto liability insurance reporting (ALIR) to departments of motor vehicles (DMVs).

ALIR places a double burden on insurers

Reporting auto coverage to state DMVs produces high costs and ongoing maintenance related to evolving regulations and modernization initiatives. Building an in-house system for one state can cost up to $500,000, while a national build-out can reach $19 million.¹

ALIR compliance shouldn’t feel like a visit to the DMV. Explore a smart, integrated, cost-efficient reporting suite. Here’s how it works:

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CV-ALIR^® helps automate reporting, saving time, money, and headaches.

An integrated reporting suite enables highly efficient, automated workflow across state DMVs.

Streamline reporting with a single daily feed to Coverage Verifier
Automate ALIR—plus court-ordered financial responsibility reporting via CV-SR22—in 38 states
Detect policy changes, reportable events, timelines, and formats
Save up to 60%² with compliant reporting that helps avoid fines and policyholder penalties

Constant updates make ALIR a moving target

Currently, 38 DMVs require insurers to report auto liability coverage in unique formats and varied schedules. It’s not negotiable, making the process anything but simple. Consider the complexity of reporting across states.

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This map highlights a difficult reality: DMV modernization, changing reporting formats and frequencies, and evolving state laws make ALIR compliance a moving target with unpredictable future spend.

Upcoming changes amplify the challenge:

Missouri (March 16, 2026, deadline): New online verification (OLV) process that will require insurers to change how they report ALIR. Mandates full compliance on day one.
Indiana (Deadline TBD): New ALIR and OLV rules; likely transactional and book-of-business reporting requirements, and possible variations for commercial vehicles must be considered.
Kansas (April 30, 2026, deadline): New OLV process that will require insurers to change how they report ALIR. Mandates full compliance on day one.
Kentucky (October 1, 2027, deadline): New OLV process that will require insurers to change how they report ALIR. Mandates full compliance on day one.
New York (December 28, 2028, deadline): Major modernization and a potential full-system overhaul of ALIR with strict enforcement on day one.
SR/CFR Reporting: Several states now require electronic reporting of SR-22/FR-44 for drivers under court-ordered financial responsibility certification. And more states are coming.

Failure to comply under tight timelines may risk state fines and policyholder penalties.

Get in the fast lane of ALIR readiness

Get ahead with Verisk’s CV-ALIR—already primed for upcoming state changes when go-live dates become final.

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CV-ALIR automation is your expressway through DMV modernization and complexity.

Our proprietary CV-ALIR decision engine and deep domain expertise help automate these compulsory tasks, cut programming costs, streamline workflows, reduce risk, and outsource planning and compliance tasks. The configurable decision engine adapts to customer handling needs while adhering to reporting requirements.

Outsourcing ALIR to Verisk solves problems for insurers:

Shift the burden of compliance headaches.
Leverage CV contribution for low, no-code onboarding, minimizing development resources.
Optimize expenses with predictable spend.
Free your team to focus on growth and revenue.

Read the previous post in this series: “P&C Reporting Challenges Part 1: Building a Better Decision Engine.”

Discover why Verisk handles outsourced ALIR for 1 out of every 4 vehicles in the U.S.³ and serves 5 of the top 10 insurers⁴ with CV-ALIR.

Request a demo

Verisk client experience
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Verisk analysis, client extrapolation based on direct written premium
Verisk analysis of CV Services clients, 2025