Car insurance vs. Health insurance.

[SSSnail]

What gives car insurance companies the precedence to raise your rates after you make a claim? (assuming the accident is 100% your fault). Health insurance companies do not follow the same trend. So what gives?

 

[Kelvrick]

Originally posted by: SSSnail
What gives car insurance companies the precedence to raise your rates after you make a claim? (assuming the accident is 100% your fault). Health insurance companies do not follow the same trend. So what gives?

Do you buy health insurance personally or through work? I think that it does go up if there are a lot of payouts to a company's employees. Not sure about personally purchased.

 

[Zenmervolt]

You just explained it. The car accident is your fault. A health issue is not.

Auto insurance uses accidents to determine your main risk group. Sure age and type of car and marital status all play into it, but the largest driving factor for that metric is past accident history. People with an accident are riskier to insure than people who haven't had an accident. Same for people with tickets.

Helth insurance uses job, marital status, gender, and chronic health conditions to determine risk group. You don't change risk groups by making a claim the way that you do with auto insurance.

ZV

 

[kami333]

The worst part about health insurance is that even if you don't make any claims it goes up every year as people leave the policy.

 

[SSSnail]

Originally posted by: Zenmervolt
You just explained it. The car accident is your fault. A health issue is not.

Auto insurance uses accidents to determine your main risk group. Sure age and type of car and marital status all play into it, but the largest driving factor for that metric is past accident history. People with an accident are riskier to insure than people who haven't had an accident. Same for people with tickets.

Helth insurance uses job, marital status, gender, and chronic health conditions to determine risk group. You don't change risk groups by making a claim the way that you do with auto insurance.

ZV

From what you just said, car insurance have already placed you in risk groups before selling the insurance to you, according to stats (tickets, years driven, age, prior accidents, etc...) and charge you the appropriate premium. So when you make the claim, assuming the money that you've paid into the insurance years after years should have covered for the accident. After all, they did charge you according to stats.

Frankly, no one wants to get into an accident and the insurance is there to cover us in case we get into one, that's why they're called "accidents". Does one accident make me more of a risky driver than I was previous to my accident? What's the point of paying into an insurance to have them recoup it by making us pay more when something happen?

With health insurance, let's say I break my arm playing basketball and went to the ER (clearly my fault right?), that will not change my risk category, nor will it increase my health insurance premium.

I personally think that it's all just a scam, that and the high deductibles.