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The issue with this is that in the limit it just makes the insurance premium exactly equal the payout + some margin. Some of the point of insurance is cost shar
by gregable 5y ago
The issue with this is that in the limit it just makes the insurance premium exactly equal the payout + some margin. Some of the point of insurance is cost sharing of extreme events.
It's perhaps a little better when we are talking about behaviors that are entirely under the driver's control, but gets potentially ugly if for example someone has slower reaction time due to genetics or health and thus gets priced out of insurance.
- leetcrew 5y ago> Some of the point of insurance is cost sharing of extreme events. I guess this borders on a philosophical point, but I don't agree. car insurance is not (or shouldn't be, imo) a payment plan for likely crashes. if, for whatever reason, a person's reaction times are so slow that they would be priced out of insurance entirely, they shouldn't be behind the wheel at all.
- throwaway0a5e 5y ago>The issue with this is that in the limit it just makes the insurance premium exactly equal the payout + some margin. At which point there's no point in insurance, it's a glorified bond or escrow service depending on how you squint.