Citation

Witt RC, Urrutia J. J. Risk Insur. 1983; 50(4): 631-669.

Copyright

(Copyright © 1983, American Risk and Insurance Association, Publisher John Wiley and Sons)

DOI

10.2307/252705

PMID

unavailable

Abstract

Based on an analysis of annual loss ratio data by state for automobile liability insurance during 1975-1980, the economic impact of no-fault automobile insurance on the relative benefits and costs to consumers and on the predictability of relative loss costs for insurers is assessed. Several hypotheses are tested by using some regression models. The results suggest that no-fault automobile insurance tends to increase relative benefits or decrease relative costs (prices) to consumers, but in the short run it does not improve the predictability of relative loss costs for insurers. From a public policy viewpoint, these results seem to suggest that a no-fault compensation system performs more efficiently than a tort-liability system for automobile insurance consumers.