On the road again: traffic fatalities and auto insurance minimums

Journal of Public Sector Economics

Yakovlev, Pavel A.¹ 

关键词: traffic fatalities;    auto insurance;    minimums;    moral hazard;   

DOI  :  10.3326/pse.42.1.3.

学科分类：社会科学、人文和艺术（综合）

来源: Institute of Public Finance

【 摘 要 】

Prior research on policy-induced moral hazard effects in the auto insurance market has focused on the impact of compulsory insurance, no-fault liability, and tort liability laws on traffic fatalities. In contrast, this paper examines the moral hazard effect of a previously overlooked policy variable: minimum auto insurance coverage. We hypothesize that state-mandated auto insurance minimums may “over-insure” some drivers, lowering their incentives to drive carefully. Using a longitudinal panel of American states from 1982 to 2006, we find that policy-induced increases in auto insurance minimums are associated with higher traffic fatality rates, ceteris paribus.

【 授权许可】

CC BY-NC