Oklahoma Selects Rekor Systems to Mitigate Uninsured Motorists

Rhea-AI Summary

Rekor Systems, Inc. (REKR) announced the integration of its AI-based Rekor One™ platform in Oklahoma to combat the issue of uninsured vehicles. This initiative is part of the state’s Uninsured Vehicle Enforcement Diversion Program aimed at reducing the state's high rate of uninsured motorists, which is currently at one in four drivers. Rekor will receive a $43 fee for each enrollment, helping identify non-compliant vehicles and assist drivers in securing insurance. The program aims to enhance road safety and generate revenue lost from uninsured motorists.

Positive

• Integration of Rekor One platform in Oklahoma enhances vehicle compliance monitoring.
• Potential revenue from the $43 processing fee for each enrollment in the UVED Program.
• Supports road safety by reducing the number of uninsured vehicles on the road.

Negative

• Oklahoma ranks number one nationally for uninsured motorists, highlighting a severe ongoing issue.
• High rate of uninsured vehicles poses significant financial risks for insured drivers and the state.

Rekor’s AI-based platform will be integrated across the state to identify non-compliant vehicles

Many states face growing problem of uninsured vehicles on the road

COLUMBIA, Md., Nov. 09, 2020 (GLOBE NEWSWIRE) -- Rekor Systems, Inc., (REKR) (“Rekor”) (the “Company”) a Maryland-based company providing real-time roadway intelligence through AI-driven decisions, today announced that the State of Oklahoma will integrate the Company’s Rekor One™ platform across the state to provide vehicle information associated with uninsured motorists as part of the state’s Uninsured Vehicle Enforcement Diversion Program (“UVED Program”), which is operated by the Oklahoma District Attorneys Council.

Use of the Rekor One platform by Oklahoma’s UVED Program furthers the state’s mission to decrease the number of uninsured motorists on the road and keep matters out of the court system. The platform allows for real-time detection of non-compliant vehicles and instant data consolidation into a regularly updating insurance database connected to the state’s enforcement programs. Additionally, Rekor’s AI-driven technology identifies a vehicle’s make, model and color—providing additional validation for confirming vehicle identification.

Oklahoma created the UVED Program as it ranked number one in the nation for uninsured motorists and after statistics showed that one out of four drivers were operating a vehicle without insurance, despite a legal obligation that motorists must have coverage. Oklahoma is losing millions in potential revenue each year from taxes on insurance premiums, and insured drivers are burdened with the cost of property damage and medical bills, as well as higher premiums, stemming from accidents involving uninsured motorists.

“Oklahoma has hundreds of thousands of uninsured motorists on the road right now, which has huge safety and financial implications for the state and its citizens,” said Robert Berman, president and CEO, Rekor. “We are seeing eye-popping statistics in other states regarding an increase in uninsured motor vehicles on the road (as well as expired tags). Rekor One is a single turnkey solution that Rekor can deliver to any state. It provides all the technology they need, with a high level of data security, to identify uninsured vehicles and take effective measures to ensure compliance.”

A motorist enters the UVED Program by acquiring insurance and paying a $174 enrollment fee, thereby avoiding the possibility of criminal charges, associated penalties, and a permanent mark on his or her driving record.

With over 273.6 million registered vehicles on the road in the United States, approximately 33.5 million are being driven without insurance, according to data derived from the  Insurance Information Institute’s and Federal Highway Administration’s most current data. Nearly one in eight vehicles in the US are uninsured, which puts insured drivers at greater risk in the event of an accident. In addition to the burden on insured drivers, states are deprived of a significant amount of tax revenue that could be earned on insurance premiums that should be paid by millions of vehicle owners.

Rekor will receive a $43 processing fee for each UVED Program enrollment. In addition to deploying technology to identify and process diversion notices issued to uninsured motor vehicle owners on the road, Rekor will also assist Oklahoma drivers by providing a one-stop web portal for uninsured motorists to easily find non-standard and standard insurance for their vehicle. Rekor’s technology supports and ensures adherence to Oklahoma’s privacy regulations. The Rekor One platform only retains data when a vehicle is out of compliance and until the vehicle becomes insured. No additional information is held or shared within the database.

“The goal of the UVED Program is to create safer roadways for Oklahoma citizens. Uninsured vehicles create negative consequences for innocent motorists as well as the State,” said Amanda Arnall Couch, Director, Oklahoma UVED Program. “Rekor, a company based entirely in the United States, was the only bidder to offer a secure, complete solution platform within the framework of single-vendor accountability. This partnership will give UVED an outcomes-oriented approach for non-compliant vehicles, reducing the burden on the criminal justice system while assisting Oklahoma citizens in getting insured.”

Rekor’s technology will assist the State of Oklahoma in identifying uninsured vehicles on the road, and once identified, the enforcement division will issue a “Notice to Respond,'' encouraging a vehicle owner to get insurance and comply with the law. Uninsured motorists cited on the road by police officers can face stiff penalties, including fines, imprisonment, license plate confiscation and/or reinstatement fees.

“The Oklahoma UVED Program is among the first in the country,” Berman concluded. “With Rekor One’s cost-effective and multidimensional technology, we anticipate that many states will initiate similar programs in the near future. An advantage of the Rekor One platform is that it can also be used to support multiple additional community safety, intelligent roadway and revenue generation activities.”

About Rekor Systems, Inc.

Rekor (Nasdaq: REKR) is a Maryland-based company providing real-time roadway intelligence through AI-driven decisions. Rekor provides commercial and government customers with actionable, real-time vehicle recognition data to enable informed decisions to be made faster and provide better outcomes. Rekor is transforming industries like Public Safety, Customer Experience and Smart Cities in more than 70 countries across the globe with smarter, quicker, cost-competitive vehicle recognition solutions for security, revenue discovery and recovery, public safety, electronic toll collection, brand loyalty, parking operations, logistics, and traffic management. We use the power of artificial intelligence to analyze video streams and transform them into AI-driven decisions by our clients. Our machine learning software can turn most IP cameras into highly accurate and affordable vehicle recognition devices used to help protect lives, increase brand loyalty and enhance operations and logistics, without the need to install expensive new infrastructure. We make what was once considered impossible, possible. To learn more please visit our website: https://rekor.ai.

Forward-Looking Statements

This press release includes statements concerning Rekor Systems, Inc. and its future expectations, plans and prospects that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements that are not statements of historical fact may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or "continue," by the negative of these terms or by other similar expressions. You are cautioned that such statements are subject to many risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual circumstances, events or results may differ materially from those projected in the forward-looking statements, particularly as a result of various risks and other factors identified in our filings with the Securities and Exchange Commission. Important factors that could have such a result include a decline or weakness in general economic conditions, an outbreak of hostilities, the ongoing pandemic and responses thereto related to COVID-19, a decline or volatility in the securities markets or regulatory changes or other adverse developments with respect to the markets for the Company’s products and services or an inability to obtain adequate financing. All forward-looking statements contained in this press release speak only as of the date on which they were made and are based on management's assumptions and estimates as of such date. We do not undertake any obligation to publicly update any forward-looking statements, whether as a result of the receipt of new information, the occurrence of future events, or otherwise.

Media Contact:
Emily Burdeshaw
REQ for Rekor Systems
rekor@req.co

Investor Contact:
Charles Degliomini
Rekor Systems, Inc.
ir@rekor.ai

FAQ

What is Rekor Systems' recent announcement about the state of Oklahoma?

Rekor Systems announced the integration of its AI-based Rekor One platform in Oklahoma to support the Uninsured Vehicle Enforcement Diversion Program.

How does the Rekor One platform help address uninsured vehicles in Oklahoma?

The Rekor One platform enables real-time detection of non-compliant vehicles and consolidates data to assist the state in managing uninsured motorists.

What is the fee structure for the Uninsured Vehicle Enforcement Diversion Program?

Rekor will receive a processing fee of $43 for each enrollment in the UVED Program.

What are the implications of Oklahoma's high rate of uninsured motorists?

The high number of uninsured motorists in Oklahoma leads to financial repercussions for insured drivers and deprives the state of potential tax revenue.

What is the goal of the Uninsured Vehicle Enforcement Diversion Program?

The goal is to reduce the number of uninsured vehicles on the road and assist motorists in obtaining necessary insurance.