Driving without insurance - market failure?
Recommend on Google+
In Britain, every three minutes, the police find an uninsured car. Is the market for motor vehicle insurance failing? I am putting an article together for the next edition of EconoMax and I want to test the water by asking blog readers why they think the scale of uninsured driving in the UK is so high - one of the worst in the European Union.
The AA which gathers information for the police says that 150,000 uninsured vehicles were seized last year compared to 78,000 in 2007. In some towns and cities the percentage of drivers without cover is staggeringly high. In Bradord in West Yorkshire, the Motor Insurers’ Bureau (MIB) has said that the BD3 postcode area had 4,403 uninsured vehicles, which equates to 57.3% of all vehicles in that area!
Are uninsured drivers commiting a rational crime having weighed up the costs and benefits of their actions? I guess that rationality would involve considering the money saved from not taking out insurance set against the risk of detection and the penalties that might follow.
This BBC news av clip is quite good on the issue and this av clip looks at the work of the Met Police in taking uninsured cars off the road.
blog comments powered by Disqus
BMW - Bavarian Monopolist at Work [24 May 2012]
Unit 1 Micro: Revision Presentation on Externalities [16 May 2012]
AS / A2 Economics Revision Clinic - Market Failure (Monday 14 May 2012) [14 May 2012]
Unit 1 Micro: Revision Blogs on Markets and Intervention [10 May 2012]
musical negative externalities [1 May 2012]
Government Intervention in the Energy Market [11 Apr 2012]
Football Clubs to Pay for Negative Externalities [11 Apr 2012]
Unit 1 Micro: Market Failure in Private Health Care [8 Apr 2012]
The Lorax and market failure. [2 Mar 2012]
10 Solutions to Binge Drinking [21 Feb 2012]
Unit 3 Micro: Prezi on Environmental Economics [11 Jan 2012]
Unit 1 Micro: Revision MC Questions on Negative Externalities [8 Jan 2012]
Unit 1 Micro: Prezi on the Economics of Negative Externalities [2 Jan 2012]
Unit 1 Micro: Video Clips on Negative Production Externalities [29 Dec 2011]
Keeping it local [24 Nov 2011]
Alcohol. Discuss! [18 Oct 2011]
Fat tax: Denmark [5 Oct 2011]
Unit 1 Micro: Drink Driving and Government Intervention [26 Sep 2011]
Friday night out at A and E [5 Sep 2011]
Merit goods, information failure, and an ironic death! [6 Jul 2011]
Not so much food inflation, but food hyperinflation! [30 May 2011]
No more lighting up in Central Park? [25 May 2011]
Electric car charging points ‘shortfall’ [11 May 2011]
AS Micro: Mock Exam Question on Sugar Prices [28 Apr 2011]
Chips - a demerit good. [11 Nov 2010]
Switching Off Street Lighting [10 Nov 2010]
AS Economics Revision - Government Failure [18 May 2010]
Revision Presentation - Positive Externalities [23 Feb 2010]
Revision Presentation - Public Goods [23 Feb 2010]
Revision Presentation - EU & Carbon Emissions Trading [22 Feb 2010]
Alcohol information failure [13 Jan 2010]
How Markets Fail - the logic of economic calamities [26 Dec 2009]
Government legislation week [1 Sep 2009]
Market Failure in Pictures! [21 Jun 2009]
Revision - Labour Market Failure (presentation) [27 May 2009]
Causes of the Crunch [8 Oct 2008]
Myopia and alcoholism [25 May 2008]
Merit and De_Merit Goods [7 Mar 2008]
A Licence To Print Money? [15 Feb 2008]
ECONOMICS TEACHER RESOURCE NEWSLETTER
Join over 6,000 other Economics Teachers in the UK and around the world who receive the tutor2u regular Economics Resource Email Newsletter. Get special offers, first news of latest resources, teaching ideas, conferences and workshops + loads of great ideas for teaching economics from our blog authors.
