Are States Shooting Themselves in the Foot as Insurers Turn to Courts to Avoid High DMV Fees?
As states desperately search for much needed revenue by raising the fees for motor vehicle records (MVR), insurers have just as desperately sought ways to reduce their rising MVR costs, which now exceed $1 billion annually. The first tool were models that looked at other data sets for indicators on which records might prove useful and which would not. These have yielded significant savings for carriers in recent years, but they have the drawback of reducing information in the underwriting process, not adding it. The newest solution to high-cost MVRs is coming from the very source of MVR information: court records. Court records are the original data set that drives the MVR, so they’re more complete and more timely than MVRs. And because so many constituencies use court records, the chances are remote that prices will spike.Continue Reading Are States Shooting Themselves in the Foot as Insurers Turn to Courts to Avoid High DMV Fees?