Yes, this is my point: rate increases after accidents are done by choice of the insurance company, not because their risk management requires them to do so, as the grandparent post implied:
> Premiums go up after an accident because it is more likely that you are a poor driver and likely to have another accident.
No, premiums go up in that situation when the insurance company thinks they can do so and not lose too many customers. As you point out, not every insurance company operates this way.
An insurance company only cares about managing risk and revenue across the entire pool. They plan to pay out a certain number of claims, so any given accident might simply be fulfilling the actuarial expectations and not altering their risk calculations at all.
> Premiums go up after an accident because it is more likely that you are a poor driver and likely to have another accident.
No, premiums go up in that situation when the insurance company thinks they can do so and not lose too many customers. As you point out, not every insurance company operates this way.
An insurance company only cares about managing risk and revenue across the entire pool. They plan to pay out a certain number of claims, so any given accident might simply be fulfilling the actuarial expectations and not altering their risk calculations at all.