Why does the Insurance Industry wants the government to cap bodily injury claims so much?
The drive behind every corporation is the need to make profits. The business of auto insurance is no different. Insurance companies make money based on their overall success in assessing risk. In other words, they try to foresee the odds of their policy owners (customers) being involved in an auto accident and what will be the magnitude of the damages they will pay. They then charge their customers a price to provide them with the financial protection that if an accident does occur, it will not cost that customer anything because it will be covered by the insurance company. As a result, the object of the game is to get the best customers out there; those less likely to be in an accident. If a company is successful at it, then it collects millions of dollars every year and does not have to pay anything out. Obviously, it is more complicated than that since insurance companies also take the money they charge their customers for insurance and invest that money in the market to make more m
