The Economic Effects of Road Safety Improvements: An Insurance Claims Analysis

David J. Feber, Judith M. Feldmeier, Keith J. Crocker

Research output: Contribution to journalReview articlepeer-review

7 Scopus citations


This article demonstrates the feasibility of exploiting insurance claims data to estimate the marginal benefits to society of highway infrastructure improvements. We construct a unique database linking claims expenditures for a major auto insurer in Michigan to infrastructure investments at 62 intersections in the City of Detroit, and conclude that the addition of a left-turn lane, or left-turn phase in the signal, decreases the insurer's average monthly claims costs at a representative intersection by $944 or $1,062, respectively. The evidence also indicates that these cost savings are a result of reductions in accident severity, rather than being a consequence of fewer accidents.

Original languageEnglish (US)
Pages (from-to)651-664
Number of pages14
JournalJournal of Risk and Insurance
Issue number4
StatePublished - Dec 2003

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics


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