Yes. For example no-claims bonuses on car insurance means you pay less if you claim less.
> If you pay a rate based on how much you used it, you might as well pay for the thing you're having the insurance pay for.
No. For example say my car insurance is £500 or something. It goes down £50 a year every year I don't use it, due to no-claims bonuses. But it's still less than paying for a major accident out-of-pocket that could cost £5 million.
Yes. For example no-claims bonuses on car insurance means you pay less if you claim less.
> If you pay a rate based on how much you used it, you might as well pay for the thing you're having the insurance pay for.
No. For example say my car insurance is £500 or something. It goes down £50 a year every year I don't use it, due to no-claims bonuses. But it's still less than paying for a major accident out-of-pocket that could cost £5 million.