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.
In: 7
Depends on the circumstances on the claim.
If you park your car properly, get out and walk away… then someone else hits your car, your insurance will likely not increase. Ideally, the other driver’s insurance will be the one that pays out. But if they are uninsured or under-insured, your own insurance might fill in the difference (depending on your coverage) without increasing your premiums.
However, if you rear-ended someone because you weren’t paying attention… then you are a bad driver (in the eyes of your insurance company). Specifically, you’re a worse driver than you were before you got into that incident. The insurance premiums for someone who rear-ends others is higher than the premiums for someone who does not.
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