Why Is Health Insurance Different From Car Insurance? 
In theory they both operate on the law of large numbers to spread a risk . They both segment the policyholders ; however , they use different factors . Your auto insurer is going to be interested in the year , make and model of the car and will be less interested in your age . Your auto insurer will not be interested in your medical history , but your health insurance carrier might be . Regardless the companies maintain records that help them evaluate the possibility and severity of claims and from that information they develop a standard rate . Those rates then are applied to individual applications . 