Is it just me but, even though the information is sent to the DMV and insurance companies, it's completely unenforceable? How is this any different then me just

Is it just me but, even though the information is sent to the DMV and insurance companies, it's completely unenforceable? How is this any different then me just calling your insurance company (assuming I have this knowledge) and saying 'Hey, this guy was driving like a tool on such-and-such a date'. What proof is there? If my insurance company or the DMV did anything with any of these reports against me, I would immediately challenge the veracity of the data.