This is fair, but in my mind, there's still data that's way too accessible for police without proper oversight. What I'd prefer is a system where if the police access it without court approval, they generate a post-access review to confirm that the police did it for a valid reason, such as an emergency. Otherwise, I think any traditional access to that kind of data should have to be via court order.
These companies provide an audit log. This is the obvious answer to prevent abuse rather than relying on courts. Imagine the senior officer or overseer or governing body gets a ping every time a license plate is requested. This isn't a novel problem. Millions of people have access to information like PII in the financial world and they manage it without all the hoops.