Insurance Verification Cameras: Just a Bad Idea

Posted & filed under Auto Safety, Oklahoma Car Insurance, Pennsylvania Car Insurance.

Earlier this month Governor Ed Rendell urged the Pennsylvania state legislature to approve a network of cameras to identify uninsured motorists, an extrapolation on the concept of red light cameras. The plan was not only intended to regulate the number of insured drivers in the state, but also to address a $470 million revenue gap. The major problem cited by critics was the development of a real-time insurance verification system dependent on accurate information from insurers themselves.

Events in Oklahoma this week would seem to validate the position of those critics as lawmakers were forced to put the skids on a similar plan to identify uninsured drivers and in the process raise $50 million for the state. They simply could not find a company that could provide the needed verification information for all fifty states. That and some technical difficulties about funds allocation put that state’s proposed camera system on ice, with supporters making the obligatory statements about “next year.”

Truth be told, lot of folks have lots of problems with this proposed use of “big brother” cameras. The American Civil Liberties Union doesn’t like the assault on privacy rights and consumer groups don’t like the fact that the cameras seem to be more about making money than policing public safety. Since both governors did cite the revenue potential of the systems, it’s out there on the table as fair game for debate.

There’s also the “aren’t we shooting ourselves in the foot” angle? How is fining people who can’t afford insurance going to improve their ability to get or to be able to pay for coverage? If the fine involves a revocation of their license, that will negatively effect their ability to earn a living. In this instance, we have to agree with Jim Baxter, president of the National Motorist Association. Plans like these are counterproductive — and a little blatantly obvious. The states are hurting for cash. Red light cameras bring in a mint of money. Why not insurance cameras? Because it will create more problems than it solves and real-time insurance data with the current level of record keeping just does not exist. Bottom line? Fail.