Abstract
In this paper, we summarize the various effects on road safety of the new automobile insurance regime introduced in the Province of Quebec on March 1, 1978, as these effects are estimated by the DRAG model of the Demand for Road use, Accidents and their Gravity. To this end we provide a short overview of the DRAG model structure and methodology described at length in a number of technical reports available since 1984 and explain how changes brought about by the new law are taken into account in the model. We briefly present estimates of the effects, measured on police data, such as: an increase in accidents with material damages only of 7%, an increase in injuries of 24% and an increase in fatalities of 9%. We argue that these partial estimates are conservative when compared to the results of visual analyses of the same police data and the claim experience of automobile insurance companies. We conclude that, once proper account is taken of the reporting effects, compulsory insurance and flat premium rating features of the new law, very little of significance, if anything, can be attributed to the no-fault feature proper of the law.
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© 1992 Springer Science+Business Media New York
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Gaudry, M. (1992). Measuring the Effects of the No-Fault 1978 Quebec Automobile Insurance Act with the DRAG Model. In: Dionne, G. (eds) Contributions to Insurance Economics. Huebner International Series on Risk, Insurance and Economic Security, vol 13. Springer, Dordrecht. https://doi.org/10.1007/978-94-017-1168-5_19
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DOI: https://doi.org/10.1007/978-94-017-1168-5_19
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