Exploratory Study of Spatial Variation in Car Insurance Premiums, Traffic Volume and Vehice Accidents

Paul Ong and Hyun-Gun Sung

University of California Transportation Center, Working Papers from University of California Transportation Center

Abstract: Traffic accidents are inevitable, albeit undesirable, outcomes of vehicular travel. They impose a heavy burden to individuals and society. The most obvious individual costs are related to bodily harm, damaged property and lost time. Even those not involved bear a cost in terms of insurance premiums to offset the risks of driving. We rely on the private market to establish the price for coverage, with state oversight to address potential problems of market concentration, imperfect information and moral hazard. The fairness of variations in premiums hinges in part on the use of unbiased accuracy rates, but this is a necessary but not sufficient condition. Differences are questionable when based on discrimination or when externalities are present.

Keywords: Social; and; Behavioral; Sciences (search for similar items in EconPapers)
Date: 2003-07-18
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.escholarship.org/uc/item/6xc677qq.pdf;origin=repeccitec (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cdl:uctcwp:qt6xc677qq

Access Statistics for this paper

More papers in University of California Transportation Center, Working Papers from University of California Transportation Center Contact information at EDIRC.
Bibliographic data for series maintained by Lisa Schiff ().