33. Negative Incident Based Determination of Drivers’ Insurance Rates

The most important factor for determining the price of car insurance should be a driver’s number of negative incidences (accidents, tickets, etc.) per 10,000 miles driven. Different weights would be given to different categories of incidents so that accidents, for example, would be looked at far more seriously than tickets. Incidents caused by drivers who are not the registered owner of the vehicle would not negatively affect the owner. Calculations/estimates would need to be made on a yearly basis to determine the number of miles driven by each driver who shares the vehicle. This factor should be the dominant factor (90-95%) in determining vehicle insurance (excluding theft insurance, etc.) while perhaps place of residence (actually it should be the areas where the most driving occurs: home, school, work, church, etc.) and type of vehicle driven could be the next largest considerations.


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