Factors Affecting the Relative Incidence of Uninsured Motorists Claims

Posted: 8 Feb 2001

See all articles by Yu-Luen Ma

Yu-Luen Ma

Illinois State University - Katie Insurance School

Joan T. Schmit

University of Wisconsin - Madison - Department of Actuarial Science, Risk Management and Insurance

Abstract

Estimates of uninsured drivers in the United States hover around 15 percent (NAII, 1998). With extensive concern about insurance affordability and its effect on economic advancement (Joint Economic Committee, 1998) and with expansion of U.S. compensation systems to other nations, consideration of factors that affect the extent to which drivers choose to insure or not is valuable. This article addresses the effect of enforcement mechanisms for purchase of required insurance on the degree to which drivers choose not to insure. Results indicate that higher levels of enforcement stringency relate to lower levels of uninsured drivers. Lower levels of poverty and populations living in metropolitan areas are also related to lower levels of uninsured drivers, while no-fault states are associated with higher levels of uninsured motorists.

Suggested Citation

Ma, Yu-Luen and Schmit, Joan T., Factors Affecting the Relative Incidence of Uninsured Motorists Claims. Journal of Risk and Insurance, June 2000. Available at SSRN: https://ssrn.com/abstract=248555

Yu-Luen Ma (Contact Author)

Illinois State University - Katie Insurance School ( email )

Normal, IL 61790
United States

Joan T. Schmit

University of Wisconsin - Madison - Department of Actuarial Science, Risk Management and Insurance ( email )

Madison, WI
United States
608-262-4240 (Phone)

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