Are Green Car Drivers Friendly Drivers? A Study of Taiwan's Automobile Insurance Market

17 Pages Posted: 12 Feb 2019

Date Written: March 2019

Abstract

By integrating claims data from Taiwan's compulsory liability insurance with a unique data set on driving mileage records for each car, this article examines whether green car drivers have lower accident risk. We find that after controlling for the mileage driven per car, the traffic accident risk of green car drivers is significantly lower. Our empirical evidence also confirms that green car drivers are, on average, high‐mileage drivers. Moreover, driving more results in a higher accident probability for green car drivers despite their being lower‐risk drivers. The policy implications are discussed.

Suggested Citation

Huang, Jerry S. and Wang, Kili C., Are Green Car Drivers Friendly Drivers? A Study of Taiwan's Automobile Insurance Market (March 2019). Journal of Risk and Insurance, Vol. 86, Issue 1, pp. 103-119, 2019, Available at SSRN: https://ssrn.com/abstract=3332580 or http://dx.doi.org/10.1111/jori.12202

Jerry S. Huang (Contact Author)

Fubon Insurance Co.

Taiwan

Kili C. Wang

Tamkang University ( email )

No.151, Yingzhuan Rd
Taiwan, Taipei Hsien 25137
China

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