This is the same weird logic used in health care insurance, which also wants to charge more or less based on individual risk. So if we follow their logic...
- They increase their accuracy in predicting who will be in an accident and change them more.
- They increase their accuracy in detecting good drivers and charge them less.
Extrapolating this out, they eventually end up charging each individual exactly what it will cost the insurance company to pay each individual's claims plus their profit margin. At that point, the insurance company is a useless middle man and everyone may as well be self-insured.