The issue with this is common with all insurance. As we approach perfect information, the price becomes such that it is equal or greater than the value of any a

The issue with this is common with all insurance. As we approach perfect information, the price becomes such that it is equal or greater than the value of any accident that may occur, which defeats the purpose of insurance. In my mind, the solution is to abandon traditional insurance and instead create a tax-free holding account where people can put aside money for critical accidents only. All else should come out of pocket. Of course, you do have a good point about your idea improving driver safety.