Saving Money With Car Insurance |
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When states adopt compulsory car insurance regulations and no-fault liability laws, some drivers may become a little more lax or relaxed. They may drive slightly faster or a little less cautiously, aware that the financial and legal consequences of an accident are reduced. They may be somewhat less likely to use seat belts and more likely to buy an old car without air bags, or to drink and drive, or simply to drive more often and further. As a result, the number of traffic fatalities increases, according to a study by Alma Cohen and Rajeev Dehejia. In The Effect of Automobile Insurance and Accident Liability Laws on Traffic Fatalities (NBER Working Paper No. 9602), they find that no-fault limits on driver liability in an accident, by diminishing the possibility of being sued, increase fatalities by about 10 percent.
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