What Is Rebating In Insurance?

In insurance, rebating is when an insurance agent offers to pay part of their commissions to a policyholder as an incentive to buy from them. Rebating can be done in several ways, including discounts on future premiums, cash back, or refunds. 

Is Rebating In Insurance Legal?

The answer to this question depends on the state you reside. Some states prohibit insurers from giving rebates to their policyholders because it allows unfair competition or inadequate coverage. However, some states allow rebates, but the insurance department regulates them. Also, rebates are only offered for a limited time. This means that you’ll need to use them before they expire.

Who Benefits From Rebating In Insurance?

Both the insurers and policyholders can benefit from rebating insurance. Policyholders benefit from rebating insurance because it helps them save money on insurance premiums. Insurers benefit from rebating because it allows them to compete with other companies. It also helps them attract customers.


You won’t be allowed to take advantage of this offer if you live in a state where rebating insurance is illegal. If you reside in a state where the insurance department regulates rebates and you’re looking to buy an insurance policy, then it’s best to look for an insurance company that offers rebates. Rebating your insurance policy can reduce your premium.