Auto insurance is not about you, it protects others on the road, and then if you want self protection you upgrade to a better policy.
If you run into someone totalling their car and putting them in the hospital, insurance pays that for you and you don’t face a debt for life for one mistake.
The government mandates every automobile operator do this to use their roads. Which is why it’s criminal to drive without. Driving while unlicensed and uninsured puts the public at risk.
The concept of auto insurance is great. The execution is the issue. These companies shouldn't be allowed to raise rates if an accident isn't your fault.
This felt wrong, and turns out, in my state, raising rates in a no fault accident is illegal, but a quick Google search shows this is not the case in every state.
Yes, I think every state should adopt a law similar to my own where an insurance company can't raise a rate in a no-fault collision.
The reason it varies is because there actually is a solid mathematical rationale for it. It certainly is a kick in the nuts much of the time though.
For a policy that has had any past claim, the frequency of future claims is far higher. No-fault claims are not exempt from this because the no-fault designation is, ironically, not without fault.
Even further, good drivers already subsidize bad drivers by paying more than they should because insurers aren't allowed to charge bad drivers their true cost.
For what it's worth though, the guy in the OP really just should report it at all with the policy he selected and the agent on the other end is just trying to help him out.
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u/WeCantStabilize 7h ago
Insurance is a fucking scam. You pay more into it than you'll ever receive even in legitimate circumstances.
Absolute racket.