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
Insurance companies are in the risk assessment game, and one of the risk factors for future accidents is past accidents. People who have had accidents are statistically more likely to have more accidents in the future.
Maybe they’re bad drivers. Maybe they simply drive a lot or live in an area with particularly bad drivers.
The insurance company doesn’t much care *why* you keep crashing, they only care that you *do*.
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