Moral hazard is the idea that if you have this, whether the auto or health kind, you'll be less careful
[DOC] [TLE] Moral Hazard and Adverse Selection - Ingrimayne [PAR] If one out of 1000 homes will burn each year, and if each person contributes ... 
and the question of whether expensive homes are more or less likely to burn ... 
the insured person has less incentive to take steps to avoid the accident or 
misfortune.