Insurance companies make money by collecting premiums and denying claims. Once you've proven to be a greater liability to insure than originally expected, your rates go up and typically stay there. This is also why insurance company commercials are so prevalent. The idea of saving money on premiums by switching insurance companies is the prevailing strategy of the accident-prone masses.
cresser1985 t1_jae6qai wrote
Reply to ELI5: why do insurance rates go up? by Upper_Fig3303
Insurance companies make money by collecting premiums and denying claims. Once you've proven to be a greater liability to insure than originally expected, your rates go up and typically stay there. This is also why insurance company commercials are so prevalent. The idea of saving money on premiums by switching insurance companies is the prevailing strategy of the accident-prone masses.