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How cellphone bans affect automobile insurance markets
Recurso electrónico / Electronic resource
MAP20190027502
Karl, J. Bradley ‌
How cellphone bans affect automobile insurance markets / J. Bradley Karl, Charles Nyce
Sumario: In this article, we examine the effect of laws prohibiting the hand-held use of a cellphone while driving on the automobile insurance market. Our research is motivated by prior studies that present evidence that the enactment of such laws alters drivers' behaviors in ways that reduce the risk of automobile accidents. We posit that that, by extension, these laws should also lead to reductions in the amount of losses paid by private passenger automobile physical damage insurers. Our analysis indicates that the enactment of a ban on the hand-held use of a cellphone while driving reduces the incurred losses and incurred loss ratios of automobile insurers by approximately 3 percent, suggesting that these bans have important economic consequences not previously documented in the literature. Additional analysis suggests that hand-held cellphone bans eventually lead to incremental reductions in premiums, but we do not observe these reductions in premiums until a couple of years following the enactment of a ban. Our analysis of automobile insurance losses also represents a departure from most prior studies of cellphone bans and therefore contributes to the ongoing debate in the public health literature regarding the extent to which hand-held cellphone bans have implications for traffic safety
En: The Journal of risk and insurance. - Nueva York : The American Risk and Insurance Association, 1964- = ISSN 0022-4367. - 02/09/2019 Volumen 86 Número 3 - septiembre 2019 , p. 567-593
1. Seguro de automóviles ‌. 2. Dispositivos móviles ‌. 3. Seguridad vial ‌. 4. Comportamiento humano ‌. 5. Prohibición ‌. I. Nyce, Charles M. ‌. II. Title.