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Premiums should be based on accident rate of the individual driver, especially if you are monitoring each driver's driving habits.
by webmobdev 3y ago
Premiums should be based on accident rate of the individual driver, especially if you are monitoring each driver's driving habits.
- seanmcdirmid 3y agoInsurance is unfortunately based on statistics. The insurance companies found they couldn’t judge risk accurately using your method. Waiting for the bad thing to occur just wasn’t good enough, they had to make predictions.
- paulcole 3y agoSo until you get in an accident your insurance should be $0.00?
- webmobdev 3y agoI meant "Premium hikes" ... should have been clearer.
- harvey9 3y agoAccident rate of the individual is a very coarse measure. But from the second clause in your post you probably meant something like hazardous behaviours rate.
- itschuntttttt 3y agoInsurance risk can only be modeled in aggregate. The entire game is to have a communal pool where 100% of people pay for the 10% whom file claims. Its also why health insurance is a fundamentally stupid idea, 100% of people need to be paid out eventually. We all get sick and die.
- Majromax 3y ago> Premiums should be based on accident rate of the individual driver, Fortunately, accidents are rare enough that most drivers do not have a statistically-valid accident history. Unfortunately, that means that the accident rate, for the purposes of insurance, must be based on a model. If the model is behaviour-based, then the insurance provider must extrapolate from measurements that correlate with accident rate, even if they do not necessarily imply moral culpability.
- webmobdev 3y agoMy mistake - I meant any "Premium hikes" should be based on the accident rate of a driver.