How I’d Run an Auto Insurance Company

Let’s talk about auto insurance. Everyone needs it, yet most people grumble about how expensive it is. So, I’ve been thinking: what if we flipped the script and made it fairer for those who drive responsibly? Here’s how I’d run an auto insurance company.

The Rule That Changes Everything

If you make a claim and it’s your fault, you’re out. That’s right—no renewal next year. Why? Because your behavior as a driver directly impacts everyone’s premiums. If you’re taking risks or being careless, you’re making it more expensive for everyone else.

Imagine how much money could be saved if the riskiest drivers were simply refused a policy after an at-fault claim. It’s not personal; it’s about fairness. For too long, careful drivers have been subsidizing reckless ones. Not on my watch!

Keeping Premiums Down for the Careful

With this system in place, the people who follow the rules of the road—the ones who stop at yellow lights instead of speeding through them—get rewarded. Their premiums stay low because the pool of insured drivers is made up of responsible individuals.

It’s like a club for the best drivers. You respect the rules, and you benefit. Simple as that.

Accountability and Incentive

This approach doesn’t just save money; it changes behavior. If drivers know they can lose their insurance for bad decisions, they’ll think twice before making them. It’s a built-in incentive to drive safely and be mindful on the road.

And let’s not forget: there are other insurance companies out there. If someone does get dropped from my company, they can try their luck elsewhere—but they might find those premiums sky-high because their record follows them.

The Big Question

Would it work? Maybe, maybe not. But I think it’s worth considering. The current system punishes everyone for the mistakes of a few, and that feels fundamentally unfair.

So, what do you think? Would this kind of model make sense? Would you sign up for an auto insurance company that rewards the careful and holds the careless accountable?