Cover: No-Fault Automobile Insurance Unrelated To Accident Rates

No-Fault Automobile Insurance Unrelated To Accident Rates

New Research Controls for Bias that Tainted Previous Studies

by David S. Loughran

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Abstract

This research brief describes work documented in The Effect of No-Fault Automobile Insurance on Driver Behavior and Automobile Accidents in the United States (MR-1384-ICJ).

Excerpt: A new RAND study refutes a common criticism of no-fault auto insurance — that it may increase the accident rate by reducing drivers' incentives to drive carefully. An analysis of accident trends in the United States between 1967 and 1989 found no statistically significant relationship between states' adoption of a no-fault system and the fatal accident rate, overall accident rates, and other measures of driver care.

This report is part of the RAND Corporation research brief series. RAND research briefs present policy-oriented summaries of individual published, peer-reviewed documents or of a body of published work.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.