why do insurance premiums go up if you have the thing that you got insurance in the first place to protect against?

Question

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

Answer 1

Statistically people who get into accidents are more likely to get into future accidents. Thus one claim changes your risk factors and can be used to recalculate your premiums.

I don’t wish to defend the ethics of this practice. You can consider for yourself whether the above logic, or a deliberate strategy of disincentivising claims, is more important to the company.