Hi everyone!  How are you?  So, my coworker, Drew, was in a car accident last night.  Don't worry, he's okay!  Anyway, he now has to deal with his insurance agency and is using a rental car throughout the rest of the week.  Quite a hassle!  Based on the accident report, Drew was not at fault.  So, the person who caused the accident will have her insurance agency pay for Drew's car to be fixed.  She will most likely also have to pay a deductible (the portion not paid by the insurance company) with her own money. 

Car insurance is required by law, which means everybody has to pay a premium each month, quarter, or year for their car insurance.  However, when a person gets into a car accident that they caused, their insurance premium, or rate, goes up.  So, in this case, Drew's insurance premium would stay the same, but the other driver's insurance rate would increase.  Although I'm glad Drew's rate won't go up, I don't always understand why the rate should increase for the person who caused the accident.  Afterall, the reason you are paying for insurance is because you need protection in case you're in an accident.  You could pay insurance premiums for years without ever having an accident.  Then, one day you might cause a minor accident and have to start paying a higher rate.  I suppose a rate increase could be considered a deterrent so that people would be more cautious on the roads.  And you would now be considered a higher risk driver.  Like most situations, the issues surrounding insurance aren't quite black and white. 

Anyway, thanks for reading my tirade.  What are your thoughts on car insurance and accidents?