Report numberRA-2005-69
TitleThe economic analysis of the motor vehicle insurance in Belgium
AuthorsLiesbet Deben
Published byPolicy Research Centre for Traffic Safety 2002-2006
Number of pages44
Document languageDutch
Partner(s)Universiteit Hasselt
Work packageOther: Enforcement and policy

Traffic insurance can intermediate with the goals of the traffic safety policy. Building on an earlier report on traffic liability, the role a traffic insurance plays in the behaviour of the traffic participant is being investigated. The obligation to take insurance has a negative impact on the care level of the insured, as a consequence  possibly leading to a larger number of traffic accidents. The problems encountered lead to different possible solutions taken by insurers and government. However these solutions don’t lead to a revival of the preventive incentives imposed upon the participant by traffic liability. As moral hazard and adverse selection remain, an increase of traffic accidents and of costs for society due to the existence of an insurance is to be expected. In making policy government should be aware of these consequences and take them into consideration while calculating the effects in their policy decisions.

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The Policy Research Centre for Traffic Safety carries out policy relevant scientific research under the authority of the Flemish Government. The Centre is the result of a

cooperation between Hasselt University, KU Leuven and VITO, the Flemish Institute for Technological Research.


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