Well, the idea is that the market takes care of lies. If a different insurer can correctly predict that a lower premium is sufficient to cover your risk, they should try to sell their product to you at a lower price to gain you as a customer and thus increase their revenue.<p>Now, that does <i>not</i> mean that it would be fair. Insurance doesn&#x27;t care about fairness. They balance premiums with modeled risk, not with actual risk.