Good point that more miles driven might increase both accidents and premiums and thus increase insurance company profit.
However, how many more miles will they drive? Double? If there's a 90% reduction in accidents as KellyCriterion alluded to, then the total number of accidents will still go down. That means total premiums will go down, and total profit will go down.
Good point that more miles driven might increase both accidents and premiums and thus increase insurance company profit.
However, how many more miles will they drive? Double? If there's a 90% reduction in accidents as KellyCriterion alluded to, then the total number of accidents will still go down. That means total premiums will go down, and total profit will go down.