November 5, 2019
COB Research Looks at Efficacy of Cellphone Bans
Past studies that examine the effectiveness and efficacy of distracted driving laws often rely on traffic crash and fatality data that have the potential for bias due to data reporting/collecting deficiencies (e.g. failure to record a distraction during an accident, etc.). However, in an article titled “How Cellphone Bans Affect Automobile Insurance Markets” Drs. Brad Karl and Charles Nyce identify a robust correlation between the enactment of a cellphone ban and the reduction of automobile insurance losses and premiums.
Dr. Brad Karl
Since automobile insurance companies pay for the overwhelming majority of automobile accidents, there is a strong correlation between accident frequency/severity and the claims incurred by insurers. Therefore, the novelty of this new research is the ability to examine the efficacy of handheld cellphone bans using a data source that is not biased by potential reporting errors.
“This research adds a new perspective to the debate surrounding the efficacy of cellphone bans and the cost of distracted driving. We hope our research will help shape future policy decisions pertaining to cellphone bans and distracted driving,” said the College of Business’ Dr. Brad Karl, the IIANC-NCSLA W. Kurt Fickling Distinguished Scholar in Risk Management & Insurance.
Click here to view the research.