[joshribakoff]

> they could just raise rates

Well, they (insurance companies in general ) also dropped a lot of homeowners in certain states, rather than simply raising the rates.

Perhaps they have done some market research and determined that there is an inflection point beyond which raising rates would actually reduce profits due to reduced competitiveness

[dd82]

Car insurance in general is a race to the bottom with competition. A good quarter has 70% of incoming premium going out to settle claims.

When you have fender bender claims costing 20-40k USD to repair, how do you price that risk?

[aleph_minus_one]

> When you have fender bender claims costing 20-40k USD to repair, how do you price that risk?

This is a solved problem. Ask any actuary who specializes in casualty insurance, or read a standard textbook about non-life insurance mathematics.

[gnu8]

Shush, I want to see a YC25 auto insurance startup that uses a pile of overheated video cards as a crystal ball to make underwriting decisions.

[pokerface_86]

most people buying specialty casualty insurance also have MUCH deeper pockets than even most people buying a cyber truck

[dd82]

Not really, car insurance rates need to go through alot of state level validation in order to be approved.

Other models are not considered insurable by GEICO as well. So likely small pool of policyholders + exorbiant claim payments == not worth the headache