Abstract
AbstractWe investigate the link between smartphone usage by drivers and increases in insurance premiums by using police accident reports and exploiting the introduction of the augmented reality game Pokémon GO as a natural experiment. We document a disproportionate increase in crashes, vehicular damage, injuries, and fatalities in the vicinity of locations where users can play the game while driving. Ignoring incremental lives lost, the lower bound estimate of the cost of users playing the game while driving translates to an increase in insurance premiums of 2.47 percent.
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