For example, if I get car insurance and get into an accident, why should that increase my premiums. I’m insuring against that risk, so the fact that I had an accident surely shouldn’t change by risk factors.
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Insurance rate is based on factors that companies can use to statistically predict your risk for an accident and put a numerical value on it. If you were an insurance company, who would you think is more at risk for getting into an accident, a person who has never gotten in one, or a person who already has?
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