Independent Institute Research Fellow John Semmens’s published an innovative proposal for improving road safety in Saturdays Wall Street Journal — allowing auto insurance companies to license cars and drivers. A similar arrangement works in the maritime industry because, Semmens argues, insurers have strong direct incentives for monitoring safety and performance of the ships and pilots they license. In contrast, employees at state Departments of Motor Vehicles,
“...have no
stake in what happens after those drivers [they’ve licensed] hit the road. Because
they would be insuring the drivers and cars they license, insurance companies
would be vigorous in their testing and car-safety requirements, letting only
qualified individuals venture out onto the roadways.”
“On
the Road,” by John Semmens (The Wall Street Journal, 9/1/07)
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