This is just not true. Most vehicle accidents have very little affect on your insurance costs. What is eating away your insurance costs are two things. Compulsory insurance and the fact that property and life insurance aren't seperate from auto insurance.
Compulsory insurance means that no matter what, a plaintiff can gain way more wealth from a defendant if the defendant has insurance because the insurance will pay it. If the defendant didn't have that much to give to pay, then the plaintiff would get what he could and that would be that. Things such as drunk driving accidents could cause the loss of your home and all wealth. But again, if you had insurance that wasn't compulsory, it would not affect your rates.
The other factor in auto insurance rates is that the insurance companies will NEVER lose money. Ever. Just like Vegas doesn't lose. Ever. When a huge storm or natural disaster occur, and there are BILLIONS owed on claims and the funds paid in won't come close to covering the loss, meaning the insurance companies either take money out of their reserves (never EVER will that happen) they just raise the rates on auto insurance, renters insurance and things like that. It happens all the time.
Compulsory insurance is a bad deal.
