Based upon a few factors, your car insurance company basically assigns you odds that you will do something that will result in the company having to fork over some money to someone (they might say, for example, that I have a 1-in-100,000 chance of damaging my car somehow). These odds are inversely proportional to the amount of your insurance payment. Now, when you do something that costs your insurance company money (getting into an accident, for instance), you are assigned new odds (and a new, higher payment). When you think about that in terms of the probability theory of random events (10 tails in a row doesn’t mean a higher probability for a tail on the 11th flip…it’s still a 50/50 chance), it hardly seems fair, does it? (I know, I know, apples and oranges).