Why do auto insurance companies typically cancel coverage after too many accidents, when those drivers are the ones who need insurance the most?

Auto Insurance

They typically have tiers for rates that fit a criteria of their customers. Once you exceed that criteria they will non-renew your policy. This is because they consider you a higher risk than the typical driver in the tier. From a risk management standpoint by leaving you in that group your claims will drive up the rates for everyone and they can no longer offer competitive rates and be a player in the auto insurance marketplace.

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