I have a couple of qn's if someone can help. 1. e.g car insurance. Why, if someone has an accident, can they not receive a refund of the remaining premium if they decide to cancel the insurance mid term? Whereas someone who has not had a claim can receive a partial refund? 2. Some car insurance companies appear to rate for a "no fault claim", ie that is they assume that the person is more likely to have an accident and/or have a claim after they have had an accident that was no fault of their own.? Thanks
1. I rather suspect it's because the company is taking every opportunity it can to claw back some of the loss you've caused it! I don't think it's any more complicated than that. 2. Some not-at-fault claims would indicate a higher possibility of future claims - for example, if you've been burgled (which isn't strictly speaking your fault), then you're more likely to be burgled again. Then, of course, there are always the people that drive very slowly and other drivers tend to drive into the back of them. Each time it will be the other driver's fault (according to the law at least), but I would still think their likelihood of being involved in other accidents to be higher than the norm.
