IDEAS home Printed from https://ideas.repec.org/p/ags/rffdps/10811.html

Pay-At-The-Pump (PATP) Auto Insurance: Criticisms and Proposed Modifications

Author

Listed:
  • Khazzoom, J. Daniel

Abstract

In 1998 the U.S. Environmental Protection Agency sponsored an effort to examine the criticisms and concerns expressed about Pay-at-the-Pump (PATP) auto insurance and explore the reformulation of PATP, taking into account these concerns. This paper provides a brief exposition of PATP and its main advantages followed by a review of its criticisms and concerns. We outline a reconstituted PATP proposal emerging from the review of these criticisms: a hybrid system that merges the best features from PATP and the existing insurance system. It retains what is consistent with the free market operation and market incentive in the existing system. At the same time it restores the price signal, the sine qua non for economic efficiency, where it has been extinguished in the existing insurance system. The reconstituted proposal capitalizes on the pricing efficiency feature that characterizes PATP, which in turn leads to a reduction in insurance cost, enhanced safety, elimination of resource misallocation, enhanced equity and reduction (possibly elimination) of accident-cost externalities. In addition, it benefits society at large with improved environment, improved balance of payments, enhanced U.S. security, and a redress to the human dimension of the uninsured motorist problem.

Suggested Citation

  • Khazzoom, J. Daniel, 2000. "Pay-At-The-Pump (PATP) Auto Insurance: Criticisms and Proposed Modifications," Discussion Papers 10811, Resources for the Future.
    • Handle: RePEc:ags:rffdps:10811
    DOI: 10.22004/ag.econ.10811
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/10811/files/dp990014.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.10811?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. repec:aen:journl:1997v18-03-a05 is not listed on IDEAS
    2. Dionne, G. & Desjardins, D. & Laberge-Nadeau, C. & Maag, U., 1993. "Medical Conditions, Risk Exposure and Truck Drivers's Accidents: An Analysis with Count Data Regression Models," Cahiers de recherche 9321, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mercedes Ayuso & Montserrat Guillen & Ana María Pérez-Marín, 2016. "Telematics and Gender Discrimination: Some Usage-Based Evidence on Whether Men’s Risk of Accidents Differs from Women’s," Risks, MDPI, vol. 4(2), pages 1-10, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chenming Jiang & Linjun Lu & Jian John Lu, 2017. "Socioeconomic factors affecting the job satisfaction levels of self-employed container truck drivers: a case study from Shanghai Port," Maritime Policy & Management, Taylor & Francis Journals, vol. 44(5), pages 641-656, July.
    2. Jaume Rosselló Nadal & Óscar Saenz-de-Miera, 2009. "Road accidents and tourism: the case of the Balearic Islands (Spain)," CRE Working Papers (Documents de treball del CRE) 2009/4, Centre de Recerca Econòmica (UIB ·"Sa Nostra").
    3. Georges Dionne & Claire Laberge-Nadeau & Urs Maag & Denise Desjardins & Stéphane Messier, 1999. "Analyse de l’effet des règles d’obtention d’un permis de conduire au Québec (1991) sur la sécurité routière," L'Actualité Economique, Société Canadienne de Science Economique, vol. 75(1), pages 269-332.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:rffdps:10811. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/rffffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.