Insurance losses under some coverages, but not others, go down when ESC is added

This article examines whether adding electronic stability control (ESC) to a vehicle decreases insurance losses for crash damage to the vehicle on which it is equipped or on other vehicles involved in crashes. The study found significant reductions in claims for vehicles that have ESC and negligible effect for damage to other people's vehicles in multiple-vehicle collisions. The biggest effect was on collision coverage losses, which reflect both how often claims are filed and the costs they incur. They were 30 percent lower for sport utility vehicles (SUVs) that had ESC than for previous models of the same SUVs without the technology. The most expensive claims were the ones most significantly reduced. More dramatic was the reduction in single-vehicle fatal crashes, which drop about 56 percent with ESC added. The reason for the disparity between the insurance claim drops and fatalities is that the types of crashes that result in fatalities don't tend to involve property damage liability for other cars. It's not clear, though, why injury claims don't appear to be affected as dramatically. However, most injury claims are minor ones, which wouldn't necessarily be affected by ESC. The article provides charts of before and after ESC numbers for various types of claims and losses, including collision coverage losses for SUVs, luxury cars, and sports cars, average payment per claim, and frequency of claims.


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Filing Info

  • Accession Number: 01010949
  • Record Type: Publication
  • Source Agency: UC Berkeley Transportation Library
  • Files: BTRIS, TRIS
  • Created Date: Nov 29 2005 1:43PM