The impact of no-fault automobile insurance on accidents is an empirical issue. Typically, studies conducted in the United States have found that no-fault measures do not affect accidents while studies elsewhere conclude the opposite. In this paper, a micro data set is used which examines the impact of no-fault measures on insurance claims. It finds strong evidence that claiments in no-fault states are likely to have a more severe injury in comparison to claimants in liability-only states. This result suggests that no-fault insurance measures affect accident severity.
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Paper provided by University of Ottawa, Department of Economics in its series Working Papers with number
9707e.
Find related papers by JEL classification: K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law) L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation