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The Impact of Airbag Adoption on Relative Personal Injury and Absolute Collision Insurance Claims

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  • Peterson, Steven P
  • Hoffer, George E

Abstract

This article examines the impact of airbag adoption on the relative injury and absolute collision loss data experiences of automotive vehicle lines. The data set consists of every automobile model for which overall injury data was published by the Highway Loss Data Institute (HLD) for the 1989-1991 model years. The empirical analysis in the article indicates that both relative injury and absolute collision losses are never mitigated and usually worsen significantly for airbag-equipped cars relative to belt-only equipped models after airbag adoption. These results are consistent both with the Peltzman hypothesis of driver behavioral changes and at-risk consumers' shifting preference for airbag-equipped models. Copyright 1994 by the University of Chicago.

Suggested Citation

  • Peterson, Steven P & Hoffer, George E, 1994. "The Impact of Airbag Adoption on Relative Personal Injury and Absolute Collision Insurance Claims," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 20(4), pages 657-662, March.
    • Handle: RePEc:oup:jconrs:v:20:y:1994:i:4:p:657-62
    DOI: 10.1086/209377
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    Cited by:

    1. Abeles, Ethan, 2004. "The Ability of Automakers to Introduce a Costly, Regulated New Technology: A Case Study of Automotive Airbags in the U.S. Light-Duty Vehicle Market with Implications for Future Automobile and Light Tr," Institute of Transportation Studies, Working Paper Series qt5cj9h1qr, Institute of Transportation Studies, UC Davis.
    2. David W. Harless & George E. Hoffer, 2003. "Testing for Offsetting Behavior and Adverse Recruitment Among Drivers of Airbag‐Equipped Vehicles," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 70(4), pages 629-650, December.
    3. Potter Joel M, 2011. "Estimating the Offsetting Effects of Driver Behavior in Response to Safety Regulation: The Case of Formula One Racing," Journal of Quantitative Analysis in Sports, De Gruyter, vol. 7(3), pages 1-22, July.
    4. Giles, Margaret J., 2004. "Driver speed compliance in Western Australia: a multivariate analysis," Transport Policy, Elsevier, vol. 11(3), pages 227-235, July.
    5. Russell S. Sobel & Todd M. Nesbit, 2007. "Automobile Safety Regulation and the Incentive to Drive Recklessly: Evidence from NASCAR," Southern Economic Journal, John Wiley & Sons, vol. 74(1), pages 71-84, July.

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