Car insurance and traffic fatalities

From a 2003 study

we find evidence that automobile insurance has moral hazard costs, leading to an increase in traffic fatalities. We also find that reductions in accident liability produced by no-fault liability laws have led to an increase in traffic fatalities (estimated to be on the order of 6%). Overall, our results indicate that, whatever other benefits they might produce, increases in the incidence of automobile insurance and moves to no-fault liability systems have significant negative effects on traffic fatalities.

So, pedestrians who demand that cyclists be insured might be increasing their risk of injury (among other conclusions). 

Comments

[scoot]

Thanks for posting this. The findings are obvious if you think about it, but it is always good to have supporting data.

Bad driving behavior would be more effectively discouraged if the costs of such behavior were not socialized to other drivers. While premiums are usually raised for risky drivers post-collisions, it's hard to believe that such hikes allow full recapture of lifetime liabilities.

[7]

This reminds me of this scene from Fried Green Tomatoes:
https://youtu.be/kXZs3mjGlQU