THE POLICY IMPACT OF NO‐FAULT AUTOMOBILE INSURANCE

Abstract
This study examines the impact of four different types of no‐fault automobile insurance laws on the risk adjusted price of insurance. No‐fault insurance plans are in operation in 23 states. Using data from 1976 to 1984 for 49 states, the study found that no‐fault plans limiting litigation result in lower prices for automobile insurance. This relationship holds even under controls for several variables that also affect the price of automobile insurance.