The Impact of No-Fault Legislation on Automobile Insurance Premiums

North American Actuarial Journal, Forthcoming

38 Pages Posted: 17 Apr 2008 Last revised: 26 Feb 2014

See all articles by Cassandra R. Cole

Cassandra R. Cole

Florida State University - College of Business

Kevin Eastman

Independent

David A. MacPherson

Trinity University; IZA Institute of Labor Economics

Patrick F. Maroney

Florida State University - Risk Management Center

Kathleen A. McCullough

Florida State University - College of Business

Date Written: December 1, 2009

Abstract

Since its inception, the effectiveness of no-fault legislation has been highly debated. While some research suggests that no-fault laws are effective in reducing costs, other evidence suggests that the current no-fault systems may not meet the original objectives. This study takes a closer look at the relation of no-fault legislation and premiums. With the sunset of Colorado’s no-fault legislation in 2003, the extension of Florida’s no-fault law to 2012, and proposed federal choice legislation, the overall impact of no-fault as well as the specific components of the laws are of heightened importance to consumers, insurers, and lawmakers.

Keywords: no-fault, automobile insurance, regulation, instrumental variables

JEL Classification: G22, G28, K23

Suggested Citation

Cole, Cassandra R. and Eastman, Kevin and MacPherson, David A. and Maroney, Patrick F. and McCullough, Kathleen A., The Impact of No-Fault Legislation on Automobile Insurance Premiums (December 1, 2009). North American Actuarial Journal, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1121167 or http://dx.doi.org/10.2139/ssrn.1121167

Cassandra R. Cole

Florida State University - College of Business ( email )

423 Rovetta Business Building
Tallahassee, FL 32306-1110
United States

Kevin Eastman

Independent ( email )

David A. MacPherson

Trinity University ( email )

San Antonio, TX 78212
United States
210-999-8112 (Phone)
210-999-7255 (Fax)

HOME PAGE: http://www.davemacpherson.com

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Patrick F. Maroney

Florida State University - Risk Management Center ( email )

Tallahasse, FL 32306
United States

Kathleen A. McCullough (Contact Author)

Florida State University - College of Business ( email )

Department of Risk Management and Insurance
150 Rovetta Business Building
Tallahassee, FL 32306-1110
United States
850-644-8358 (Phone)
850-644-4077 (Fax)

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