Premium
A RE G REEN C AR D RIVERS F RIENDLY D RIVERS ? A S TUDY OF T AIWAN'S A UTOMOBILE I NSURANCE M ARKET
Author(s) -
Huang Jerry S.,
Wang Kili C.
Publication year - 2019
Publication title -
journal of risk and insurance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.055
H-Index - 63
eISSN - 1539-6975
pISSN - 0022-4367
DOI - 10.1111/jori.12202
Subject(s) - liability , business , accident (philosophy) , transport engineering , chemistry , engineering , finance , philosophy , epistemology
A BSTRACT By integrating claims data from Taiwan's compulsory liability insurance with a unique data set on driving mileage records for each car, this article examines whether green car drivers have lower accident risk. We find that after controlling for the mileage driven per car, the traffic accident risk of green car drivers is significantly lower. Our empirical evidence also confirms that green car drivers are, on average, high‐mileage drivers. Moreover, driving more results in a higher accident probability for green car drivers despite their being lower‐risk drivers. The policy implications are discussed.