23rd May 2006, 8:24 PM
Dark Jaguar Wrote:Here's what I don't get. What's the deal with raising insurence rates after an accident? Isn't the whole purpose of insurance supposed to be that they get a LOT of money from someone over many years so that if they do get into an accident, a small amount of what has been payed is more than enough to pay for it? I'm not a rastafarian accountant, so maybe I'm missing something about "dividends" or "market point fluctuations", but seriously, what's going on? I'm hearing horror stories about tiny scratches or "bumps" getting massive insurance price increases and I'm wondering, aren't the insurance companies supposed to expect such things? I really can only see this being a good response in the event of someone causing enough damage that the insurance they pay is not enough to pay for the accident.Exactly. Almost defeats the purpose.
Great Rumbler Wrote:Insurance companies are in the business of making money. When you don't get into wrecks, they make money. When you get into wrecks, they LOSE money. So what happens when you make a claim on your insurance? They raise your rates so that they can MAKE MONEY. It's as simple as that.Exactly again. It's pretty much a scam.