Insurance companies are not in business to pay claims , they are in business to collect money . Had an interesting discussion with an insurance employee about why the rates go up if you've had an accident , after all I felt , I'd been paying premiums for years . In her vision , I pay premiums to pay the wages of the employees to keep track of things . If you have an accident , they pay off the car or pay you to get it fixed , but that's just a loan to you . They then raise your rates , so you can pay off your loan .