No-Fault Automobile Insurance and Accident Severity : Lessons Still To Be Learned.

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.