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 companies are basically betting on you not having an accident, if you have an accident they adjust the odds.
and you having an accident could very well be because there was a change in risk factors, like you started taking a more dangerous road to work etc.
and there are, at least here, plenty of insurance companies that advertise that once you haven’t had an accident for a number of years, an accident won’t change your premium
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