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Are Green Car Drivers Friendly Drivers? A Study Of Taiwan'S Automobile Insurance Market

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  • Jerry S. Huang
  • Kili C. Wang

Abstract

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.

Suggested Citation

  • Jerry S. Huang & Kili C. Wang, 2019. "Are Green Car Drivers Friendly Drivers? A Study Of Taiwan'S Automobile Insurance Market," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 86(1), pages 103-119, March.
    • Handle: RePEc:bla:jrinsu:v:86:y:2019:i:1:p:103-119
    DOI: 10.1111/jori.12202
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    Cited by:

    1. Alicja Wolny-Dominiak & Tomasz Żądło, 2021. "The Measures of Accuracy of Claim Frequency Credibility Predictor," Sustainability, MDPI, vol. 13(21), pages 1-13, October.

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