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If your theory is that they can raise prices arbitrarily for profit, then you have to explain why they have not already done so. Insurance companies complete o
by hgsgm 3y ago
If your theory is that they can raise prices arbitrarily for profit, then you have to explain why they have not already done so.
Insurance companies complete on actuarial accuracy. I'd rather bad drivers pay more, and be in incentivized to drive better, than young drivers and all drivers pay more.
- LeafItAlone 3y ago> then you have to explain why they have not already done so That may be easy: there is a lot of competition in the market. If one company raises their rates too high above others, it is very easy to switch. Lots of people switch every few renewals, chasing a cheaper price. With the individualized data, they can selectively raise their rates and either take more in from those customers, or get them (and just them) to flee. All without having to wait until _after_ an accident.