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Pay-At-The-Pump Auto Insurance AgEcon
Khazzoom, J. Daniel.
PAY-AT-THE-PUMP is a proposal to replace the current insurance system of lump sum payments for automobile insurance by a mechanism whereby motorists pay for their insurance as they buy fuel for their vehicles. PAY-AT-THE-PUMP has several advantages. It reduces insurance cost and cross subsidies and enhances equity. It also benefits the environment, safety, balance of payments, and security. In this paper we study limited but very important issues in the theory and implementation of PAY-AT-THE-PUMP insurance. We address issues of efficiency, subsidy, equity, externalities, safety, insurance cost and cost of insuring the uninsured motorist under a PAY-AT-THE- PUMP regime. We use the insurance industry's criticisms of mandatory auto insurance as a lens...
Tipo: Working or Discussion Paper Palavras-chave: Converting fixed to variable cost; Efficient pricing of auto insurance; Environmental benefit of Pay-at-the-Pump; Exposure risk; Insurance cost; Insurance externalities; Mandatory insurance; Safety; Uninsured motorist; Universal auto insurance; Risk and Uncertainty; L2; L9; M2; Q2; Q4; R4.
Ano: 2000 URL: http://purl.umn.edu/10906
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What We Know About Uninsured Motorists and How Well We Know What We Know AgEcon
Khazzoom, J. Daniel.
The problem posed by the uninsured motorist is of concern to the general public, policyholders, insurance companies, insurance regulators, and legislators. What is striking, however, is the fragmentary nature of the information that is available and the fact that it is scattered over so many sources. Even more striking is the fact that those sources often provide conflicting estimates, and the methods used in deriving those estimates are either never spelled out or, if they are, their reliability is unknown. In view of the general concern with the problem of uninsured motorists, this paper attempts to present an overview of what we know about the uninsured motorists and how well we know what we know through the following measures: clarifying the subtleties...
Tipo: Working or Discussion Paper Palavras-chave: Converting fixed to variable cost; Efficient pricing of auto insurance; Environmental benefit of Pay-at-the-Pump; Uninsured motorists/vehicles; Universal auto insurance; Pay-at-the-Pump insurance; Risk and Uncertainty; K4; L9; Q2; R4.
Ano: 2000 URL: http://purl.umn.edu/10533
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