Insurance rebates

I just got a notice from Geico that the lizard is rebating part of my auto insurance premiums. It looks like roughly 20%, and it'll be issued as a credit when I renew.

The rationale is that there are far fewer claims, now that people are driving much less. I understand that other insurance companies are doing this, too.

I don't get it. They're not contractually obligated to do this. I would expect them to just take all that extra cash and go dancing off into the sunset. It's insurance--basically, a casino, and the house just won big time.

Could it be as simple as one company did it and the rest felt obligated to follow suit?

I saw that too, auto insurance pity stimulus rebate.  It will be useful IF the next renewal rate is not increased, as often is the case.   Certainly a customer retainment strategy.

 It is probably a marketing measure done in the hope that people will remember this "generosity" come renewal time, and don't forget, since people, on a hole, aren't driving there are presently less claims to pay.

Some Auto Insurers Are Giving Rebates

Poor old DonDiego just checked the internets, . . . and learned his insurer will be giving rebates too ! ! !

Reported yesterday that accident reports are down 50%.

they may feel pressured into a credit but, I agree with Kevin they are not obligated to do so.

we have Farmers Mutual, as far as I know they have not announced any rebates yet.

Flo is rebating about one billion. To me and some other people, I suppose.

Insurance companies are regulated, and, afaik, have to justify their premiums, profit margins etc,. so maybe this is a pre-emptive move to avoid  windfall profits that would get an evil eye from state regulators as well as generating a lot of bad press.