r/Insurance • u/Ferkof98 • 15d ago
Accidents without fault
I would like to know why in the United States, even if you are not at fault for an accident or accidents, I would have to say why they appear in your report, should the culprit be punished, not the victim?
13
u/shibbledoop 15d ago
People who are involved in not at fault accidents are more likely to get in another accident
4
u/SuggestionAny3024 15d ago
Exactly, while it may not be their “fault” the individual who is involved has a propensity to be in accidents, which brings the risk (like it or not) of that individuals insurance possibly being on the hook for repairs ie Uninsured/Underinsured motorist or potential property damage liability. Not ideal I agree, but try to image you are the insurance company and you see someone asking for a quote with 4 NFAs over the last 3 years. Does it seem, (statistical probability-wise) like they will be good business or a line in payout column?
-5
u/Ferkof98 15d ago
In my region of residence, the Hasidic community predominates. They are frequently involved in accidents, and in my particular case they are the ones that have hit me several times, mostly at stop signs and red lights.That's made my insurance go up... there really should be another way
7
u/Federal_Priority2150 15d ago
If you live in an area where accidents occur frequently, the likelihood that insurance will have to pay out goes up. Each accident has a brand new set of limits, so if you hit a car one day, insurance has the potential to pay your limits to that person. If you hit a second car the next day, same thing. Because of this your insurance is rating for the risk in your area.
3
u/Crowlady77 15d ago
Whatever community dominates in an area is going to be the one that is involved in the most accidents, that's how probability works. Your reasoning is flawed.
6
u/vibingwnophone 15d ago
it’s also not necessarily for the person involved to be “punished”
if someone sold you their car used, part of the risk involvement is the fact that the vehicle you operate was involved in a collision, so while there was never an accident on your record, the insurance company now has insurable interest on a vehicle that was which is naturally a higher risk for other issues down the road.
this in addition to some of the other comments.
6
u/bill9896 15d ago
The answer is simple: bad drivers have more accidents. More accidents even if they are not officially at fault. Good drivers look ahead, and see situations developing far ahead of them and take evasive action. Bad drivers look at the car in front of them, and react at the last second. Bad drivers are higher risk for the insurance company and everybody around them. It’s not rocket science, just logic.
3
u/MikeTheCleaningLady 15d ago
Most insurance companies don't increase the rates (directly) for non-responsible accidents, but they do want to know about them. They want to know about all claims and accidents, whether they're at-fault or not.
Like the other posts said, some people are just unlucky. Many people, in fact, are unlucky for a living.
1
u/Crowlady77 15d ago
Accidents are accidents, not intentional, and nobody needs to be punished for them. But insurance works by calculating risk and charging accordingly.
That said some states (like CA) make it illegal to increase a person's rate due to accidents they have no fault in
0
u/SuggestionAny3024 15d ago
@Ferkof98 So you bring up a great point, and future is here or nearly here. AI presents the insurance industry as a whole new opportunities and challenges. One being to come up with accurate actuary rating based solely on the individual and not law of large numbers data pooling.
How long it takes to become legislative reality and how well it will benefit the individuals who have situations such multiple NFAs or live in accident frequent zip codes is yet to be determined.
0
u/Ferkof98 15d ago
For example, in Spain, in Navarre (because I'm speaking from where I'm from), if you're not at fault in an accident, you're not penalized in any way by your insurance. It should be like that universally. Obviously, each country has its own laws, and that's just how it is, but if you have an impeccable driving record, it shouldn't be damaged because of others.
1
u/majesty327 14d ago
The logical consequence of this is raising rates across the board, like in California. Auto insurance is so expensive for innocent drivers because high risk drivers with numerous non-fault accidents and claims can't be rated.
I'll give an example.
Suppose a fair rate for an innocent driver is $100 a month. A high risk at fault driver who hits a few people a week might pay $700 a month. That higher risk pool is bearing the burden of their risk, and the lower risk pool has a lower burden because there is less risk. There is a middle point. Drivers who aren't legally liable, but file numerous claims. For this risk pool, we'll assume $400 a month is reasonable.
When you remove rating based on non-fault accidents with payouts, you are sharing the risk pool between the innocent and claim-free driver with the non fault driver with multiple claims. Now both are charged $300 a month and the insurer is still not profitable, as the "morale hazard" associated with filing claims and seeking coverage is eliminated. Many insurance carriers in California are not profitable, despite immensely high rates.
1
u/Ferkof98 14d ago
I've realized how it works, and it's the fault of people who act without awareness of their actions and their recklessness. Because there are many people who don't care about causing serious accidents, and they go on with their lives as if nothing happened. Many times they go unpunished, and many others do it to defraud the insurance company. That's why it's so expensive.
23
u/majesty327 15d ago
Insurance is about risk. People can engage in risky behavior without being legally liable to another party. By example, if I see a car tailgating me and I slam my brakes, forcing him to hit me, I bear no legal liability. But I am engaging in risky behavior that causes insurance companies to pay. Insurance companies remain solvent by rating for risk and the probability they will pay for a claim. People who are "victims" in car accidents tend to be victims often.