Can the conduct of uninsured drivers potentially impact those who maintain liability insurance on their vehicles?

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Expert Solution

Opinion - " Yes "

The obtaining insurance is expected to have destructive incentive effects on driver behavior, and as such on accident probabilities, due to the adverse selection and/or moral hazard effects, through empirical studies provide mixed evidences.

The risks of an accident imposed by uninsured drivers are, however , indeterminate as well, became of unavailability of individual data on uninsured drivers. The accidents are increasing I.e the uninsured drivers age will be 24 to 37 age group. Their data is available which they impose high risk traffic I.e violating the rules.

Insurer will provide the risk accidental damage coverage and the injuries damage that happened to the insured person. Their data is available with insurer and with government also to safeguard the accidents coverage by having details of the person.

Hence the conduct of insured drivers are potentially effects those who maintain the liability on their vehicles.

jeff jeffy answered 1 year ago

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