Any insurer which raises rates to pay for this would quickly lose most of its business unless they're (a) the only insurer in the state or (b) convince the rest of the insurers in-state to collude on pricing. The first isn't the case of any state with respect to auto insurance, and the second is a state and federal felony punishable by many years in jail for any executive stupid enough to participate.

And that's assuming they can get away with the rate increases in the first place. States like CA have insurance commissioners empowered to review and reject rate increases.

You do know that progressive has been doing it for a few years, right? With that little device that you can plug into your car to lower the rates?