Proposed Bill in California May Reduce Auto Insurance Claims

Scene of an auto accidentLast week, the California State Assembly passed legislation that will permit video recorders on car dashboards, the Associated Press reported.

The law was backed by businesses that hire driving teams who want to be able to determine who is at fault in the event of an accident. Assemblyman Nathan Fletcher supported the bill and said other states with dashboard video recorders have been able to reduce their accident claims by 80 percent, according to the AP. This has the potential for insurers to provide more inexpensive car insurance options.

The video recorders can detect where the car goes, how fast, if a seatbelt is worn, and if the brakes were used before an accident. However, the bill raises concerns about a driver’s privacy. ACLU lobbyist Valerie Small Navarro told the AP that “it’s one thing if you’ve got your teenager in the car and you’re concerned about his or her driving, but I think it’s a different thing if it’s an employee or it’s an adult. You want safety precautions, but on the other hand, an individual’s sense of autonomy and privacy has to be protected.”

The bill passed the Assembly 49-0 on Monday, May 17 2010 and now moves to the Senate.

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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