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Effect of Prevention Focus on the Relationships Among Driving Accident History, Risk Perception, and Consumers’ Automobile Insurance Coverage Decisions

Author

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  • Shi-jie Jiang
  • Feiyun Xiang
  • Iris Yang

Abstract

The primary aim of our research was to examine the moderating role of prevention focus (PRE) and the mediating role of risk perception (RP) on the relationship between driving accident history (DAH) and insurance coverage (IC) decisions to test this moderated mediation mechanism. We collected survey data from 808 newly eligible voluntary automobile liability insurance policyholders in Taiwan and analyzed the data using PROCESS macro. The estimated results showed that PRE moderated the indirect effect of DAH on IC through RP. In general, a worse DAH would increase the RP of people who were high prevention-focused, thereby increasing their willingness to purchase a higher IC. Conversely, a worse DAH would not increase the RP of people who were low prevention-focused, and such people would not increase or would even decrease their IC. The results provide an explanation for the inconsistent paths from DAH to IC in the literature. From a marketing perspective of psychographic segmentation, our research helps insurance companies to determine what types of consumers they should pay more attention to and to formulate marketing strategies. JEL: D91 G52 E21

Suggested Citation

  • Shi-jie Jiang & Feiyun Xiang & Iris Yang, 2023. "Effect of Prevention Focus on the Relationships Among Driving Accident History, Risk Perception, and Consumers’ Automobile Insurance Coverage Decisions," SAGE Open, , vol. 13(3), pages 21582440231, July.
    • Handle: RePEc:sae:sagope:v:13:y:2023:i:3:p:21582440231189233
    DOI: 10.1177/21582440231189233
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    More about this item

    Keywords

    insurance coverage; driving accident history; prevention focus; risk perception; moderated mediation;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • G52 - Financial Economics - - Household Finance - - - Insurance
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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