I’ve written before about how I think banks could solve underage drinking, and today’s article is on a similar subject. How insurance companies can reduce traffic crime.
I dislike illegal parking, I particularly dislike people who aren’t disabled using disabled bays. How about this:
If you are illegally parked, your insurance isn’t valid.
Simple right? and harmless. No moving parts are required. Just that if you are ignoring the social contract you have with the community, then the insurance company gets to ignore you.
This works particularly well in terms of being progressive (in taxation sense – a progressive tax is one in which the richer members of society pay more in absolute terms). While someone would think twice about parking their 1997 Cleo if their insurance was threatened, they’d definitely be parking their top-of-the-range Land Rover somewhere else.
If we wanted to be properly effective, we can extend the idea. Full comprehensive insurance? If you are found to be speeding that reverts to third party. Fire and theft? Only if you’ve paid your car tax.
Maybe that’s enough to make people think twice. It would certainly stop employers encouraging their delivery vehicles to hover on double yellows for a half hour.
I’m slightly confused why this doesn’t happen already. Insurance companies want to make money and are normally willing to use every trick in the book to make it. How have they missed this one?
There are already laws, but these are laws that seemingly many people really don’t worry about breaking. How about we get some real skin in the game. How about we let the insurance companies say “If you walk away from the society’s rules, then society will walk away from you”.