Re:Some auto insurers are sending refunds to customers as cr...
by unbalancedevh on Monday April 06, 2020 @11:00PM
(#22799990)
I just got a refund check from Progressive, the same time I got my next bill. I wish they had just reduced the bill.
Re:Some auto insurers are sending refunds to customers as cr...
by Spivak on Monday April 06, 2020 @11:07PM
(#22800021)
I can’t even imagine how annoying a system like that would be to implement. So you credit everyone’s account but then you have mark this money as special to ensure that it eventually gets paid out to every account in either credit or cash. Then you have to monitor the accounts for policy cancellations and issue checks.
Re:Some auto insurers are sending refunds to customers as cr...
by djannzjkzxn on Monday April 06, 2020 @11:47PM
(#22800205)
The credit card companies don’t seem to have any trouble applying my cash back rewards to my account balance without sending me a check. But if I do cancel my account and end up with a positive balance, they do send a check. Seems like basic accounting to me, not some sort of wizardry like you suggest. Mailing checks is probably more expensive if anything.
It's not getting your premium back because you didn't need it. You'd still get back this portion of the premium even if you get into a car accident on your way to the grocery store, because it's not about you, it's about everybody else. The average risk went down, so the average premium went down.
This certainly happens in the other direction too, they'll raise your premium for the next period if the average risk goes up. But their marketing departments aren't stupid. Sending everybody a check right now makes their "largess" more conspicuous to customers than sending everybody a smaller bill next quarter. It also keeps you from canceling your policy with them and switching to someone else currently offering a lower rate because of the currently lower risk.