It is indeed called risk compensation.
I remember seeing a demonstration of it on the telly back when documentaries still actually had facts. They took one driver, his volvo estate, a straight bit of road with cones at the end and told him to drive at thirty and make an emergency stop before the cones. Unsurprisingly, he stopped well before. They then repeated the experiment, same driver, same road, same Volvo estate and same cones! ...but this time he wore a seatbelt.
Result: squashed traffic cones. It was also commented that the casualty rate for vulnerable road users had increased once mandatory seat belt use had come in. It's a well established phenomenon. Everyone has their own comfort zone - if you make them feel less safe, they'll adjust their behaviour to increase their perceived safety. And vice versa: make someone feel safer and they'll feel able to take more risks. Everyone does it and most of the time it's entirely subconscious - you're not even aware that you are doing it.
Like a lot of other people, I've noticed a definite difference when I'm in civvies or lycra - presumably they think I'm competent when I look the part (Ha! More fool them!)