The province I’m in has socialized car insurance through a crown corporation. We all pay relatively the same rate, and there are discount tiers applied based on years of experience. If they have a good year of low payouts we get rebate cheques because its not a profit corp.
Drive less > less chance of accident > fewer payouts > bigger refund check > adjust forecast lower for next year > lower premiums > GOTO 1
Or maybe it’s closer to zero sum. because some think that way while some asshole coughAlberta uses the money on extra tires and gasoline to drive even more.
Why would you pay for a car to not drive it but instead collect the refunds? It would be cheaper to not have a car. I think it would incentivize driving more as the premiums are low and when that causes premiums to rise higher it would disincentivize owning a car.
Not surprising that the refund check doesn’t reduce driving in practise. If memory serves - you can’t reward a behaviour into extinction, just like you can’t punish a new behaviour into existence.
At least, that’s if you credit what they teach in applied behaviour analysis courses. I don’t get to use my degree much, except at times like this.
The province I’m in has socialized car insurance through a crown corporation. We all pay relatively the same rate, and there are discount tiers applied based on years of experience. If they have a good year of low payouts we get rebate cheques because its not a profit corp.
That’s the way you do it, if it must be done at all. And despite my antipathy towards cars, it seems it must.
I would think it would disincentivize driving?
Drive less > less chance of accident > fewer payouts > bigger refund check > adjust forecast lower for next year > lower premiums > GOTO 1
Or maybe it’s closer to zero sum. because some think that way while some asshole cough Alberta uses the money on extra tires and gasoline to drive even more.
Why would you pay for a car to not drive it but instead collect the refunds? It would be cheaper to not have a car. I think it would incentivize driving more as the premiums are low and when that causes premiums to rise higher it would disincentivize owning a car.
Not surprising that the refund check doesn’t reduce driving in practise. If memory serves - you can’t reward a behaviour into extinction, just like you can’t punish a new behaviour into existence.
At least, that’s if you credit what they teach in applied behaviour analysis courses. I don’t get to use my degree much, except at times like this.
What happens if they pay out more than forecast?
Then there might be a rate increase for everyone in subsequent years, but not your current contract.