text: Insurance is a pool. When an accident happens, money is taken out of the pool. The reason why insurance rates go up is because people get into accidents. Governments (state) mandate how much money insurance companies can make on the premiums (that's why Geico can only say "We can save you UP TO 20% on car insurance," and not "We can save you up to 100% on car insurance." Insurance is one of the most highly regulated industry. The insurance companies aren't to blame, bad drivers and low licensing standards are.