Unregistered Vehicles and Insurance Exposure: Implications for Risk Management Among Adult Road Users

Abstract

Unregistered vehicles present a growing challenge to road safety, regulatory compliance, and the effectiveness of compulsory motor insurance systems in developing economies. This study examines insurance coverage among unregistered vehicles in Ghana and analyses its implications for risk management among adult road users. Guided by risk management, stakeholder, and behavioural theories, the study adopted a qualitative research design to explore lived experiences and institutional perspectives. Data were collected through purposive, face-to-face interviews with twenty-three key stakeholders, including registered and unregistered vehicle owners, insurance underwriters, garage managers, and officers of the Motor Traffic and Transport Department. Thematic analysis supported by NVivo software revealed four interrelated themes: insurance compliance behaviour, perceived risks associated with unregistered vehicles, enforcement challenges, and stakeholder-specific risk management strategies. The findings show that insurance compliance among unregistered vehicle owners is irregular and largely enforcement-driven, while unregistered vehicles significantly increase financial, legal, and underwriting risks. Weak and inconsistent enforcement further undermines the effectiveness of insurance as a risk transfer mechanism, exacerbating moral hazard and adverse selection. The study concludes that unregistered vehicles weaken Ghana’s compulsory motor insurance framework and expose multiple stakeholders to avoidable losses.