-Homeowners Insurance
-Auto Insurance
At the end of every policy term, if a claim HAS NOT been submitted to the insurance company, a partial refund (NOT to exceed 50% of the policy premium) be returned back to the customer.
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I don’t think insurance companies could survive with this regulation. In my understanding, insurance companies only work because they can pay for a few claims using a large pool of subscriptions. I.e: They use the money they get from many insured to pay for a comparably small number of claims and earn a profit.
If they have to pay much of that money back to the insured when they don’t make a claim, there likely won’t be enough left for any insurance company to make a profit.
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This sounds like something for the insurance companies to figure out, not for the federal government to get involved in.
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Unfortunately this would only increase premiums tenfold. We insurers and brokers make little to nothing on a large scale when it comes to premiums. Should some premium be returned? Absolutely.
But up to 50% would exacerbate the problem. Depending on the insured it should go up to 30%.
If you have a ticket for speeding, DUI, or other infractions you should not be able to get much or any premium back. But if you have a clean record year after year absolutely you should get premium.
For homeowners insurance, we should have more credits available to people and those credits give bigger % reductions to your overall premium.
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