"if YOU were an insurance company and you KNEW that spotty-OIKS would cost you VASTLY more than geriatrics (like myself) AND that us geriatrics can get VERY cheap insurance from OTHER companies..... what would YOU do about the rates for spotty-OIKS and .... me?"
Well I'd raise the price for spotty oiks, (obviously). But what if there was a way for careful drivers who'd had no accidents to get a lower rate? As an insurance company I would have no interest in giving a significantly lower rate to such drivers (for a start, it would cut my profits and I'd have to raise prices for young drivers who have had accidents) but through regulation it is easily possible.
Note, that regulation isn't a bad thing, it would be a similar thing to what currently prevents insurance companies having a meeting between themselves and deciding to increase the prices for all drivers ten fold.
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