General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsIf insurance is premised on assessing and placing a numeric value to risk ...
shouldn't auto insurance premiums decrease after a accident resulting in a loss?
I think I read/saw/heard of an insurance industry report indicating that the typical policy holder suffered an accident resulting in the vehicle being "totaled out", once every 10-12 years.
If the above is true, it should stand that after a major accident, auto insurance premiums should come down, as that person becomes a more careful (i.e., lower risk) driver.
(Anecdotally, My daughter totaled my vehicle, 6 days after getting her driver's license ... she is now one of the most careful, conscientious drivers that I know.)
Gman
(24,780 posts)The risk is calculated on the "universe" of drivers who will continue to have accidents. One accident is a drop in the bucket to the universe of drivers. And one accident is also considered to imply more future risk on an individual basis.
And I'm sure your daughter is careful now. But she is also among the most risky drivers as a whole.
dipsydoodle
(42,239 posts)the probability of having another accident doesn't change after the previous one.
Niceguy1
(2,467 posts)A history of minor accidents to have a major accident one day.j
Gman
(24,780 posts)dipsydoodle
(42,239 posts)Reminds me of the old chestnut concerning the probability of two bombs being carried aboard a plane. Taking one with you seemingly reduces the probability of another having done so.
Romulox
(25,960 posts)hobbit709
(41,694 posts)Not because I had any accidents or tickets but because I hadn't been insured for 10 years.
It didn't matter that I hadn't owned a car for those 10 years either. I pointed out that it was called vehicle insurance, not driver insurance, but that didn't matter.
Gman
(24,780 posts)Whereas OTOH, long term policy holders with few or no claims get discounts and even "forgiveness".
unblock
(52,227 posts)two taxis arrive at the same time.
both have been driving 10 years.
one driver has never been in an accident.
the other driver has been in one accident. the vehicle was a total loss.
which cab would you put your daughter in?
KurtNYC
(14,549 posts)But with humans the best predictor of future behavior is past behavior. Certain groups, such as young males, alcoholics and compulsive texters, are simply more inclined to accidents.