Automatic License Plate Readers May Present Privacy Concerns

Any technology that enables the gathering of consumer information can deliver opportunities for organizations—more effective marketing, better customer service and increased sales, for example. It can also present risks of invading privacy. Such is the case with automatic license plate readers.

Some states have begun using the technology or are considering it to find uninsured drivers, with the aim of keeping uninsured vehicles off the roads.

‘In states with insurance requirements, vehicle registration often requires proof of insurance at the time of registration,’ says Michael Richmond-Crum, director, personal lines & counsel, at the American Property Casualty Insurance Association.

‘This means that each vehicle should be associated with an insurance policy within DMV databases,’ Richmond-Crum says.

‘If an insured allows a policy to expire, many states require that insurance carriers notify the DMV of the policy lapse. If a vehicle is recorded being operated, and the related policy has lapsed, it may be being operated without proper insurance coverage.’