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Eric Said:

House/Car insurance a "win-win" money maker for the insurance firms ?

We Answered:

Insurance is rated moving forward. After you have the accident that your insurance company pays on, they asses you as a different type of risk. If you get in an accident, you prove that you are more likely to get into accidents. If you get a speeding ticket or another moving violation, you are also at a higher risk for accidents.

It is a hard concept to swallow, especially when you are paying money every month, and never use your insurance. An extreme example where it may make more sense is this....a gentleman never has an accident or speeding ticket, his whole life he pays religiously, this gentleman is now 90 years old. Don't you think that this man is more likely to get into a wreck? More likely that a 40 year old man at least (all things except age being equal). Or maybe 16yr olds should pay less because they have never been in an accident and never gotten a ticket for that matter. If Insurance companies didn't rate you on what they expect you to do in the future, then young inexperienced drivers should get some of the best rates. If they don't rate you moving forward then we would all pay the same rate which means that higher risks would pay lower than they should and lower risks would pay more.

You can always get quotes from other companies. Another company may not rate one accident as heavily as your current company.