Bogleheads

greenspam · Joined: 26 Feb 2007 Posts: 194 Location: east coast

just got my bill from GEICO for next 6 months of insurance coverage...

went from about 2K last cycle to 5.5k for next 6 month cycle !!!

details: NJ, 3 vehicles; 4 drivers (me, wife, 2 kids: 19, 22 yo)

i called GEICO and they said we are no longer getting the 'preferred' customer rate due to 2 accidents my daughter had over the last several years. one accident was her fault, the other wasn't.... and she did get a ticket with 3 pts...

but c'mon, an INCREASE of about 175% ???? Ridiculous. I do not want to pay 11K for car insurance next year !!!

QUESTIONS:

1. Has anyone had a similar experience and can offer advice ?

2. Does anyone know if i can just get a separate policy for the 1 vehicle which my kids share, and remove them from the policy for the other 2 vehicles ?

3. Any suggestions on a better company to go with ??? I mean, Warren B. is trying to rip me off here !!!

thanx in advance for any and all guidance,
cheers,
happy holidays,
don't forget to donate clothing and food this holiday season !!!!
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as always,
peace,
greenie.

tonyd · Joined: 07 Apr 2007 Posts: 3

I live in Texas and had Geico auto insurance for 16 years. They kept raising my rates. My son switched to Progressive Insurance and I thought I would get a quote. Progressive was $300 cheaper every 6 months. I asked Geico if they would match Progressive's quote - They Said NO. I switched to Progressive. Worth a try. Hope it all works out.

Tony

CyberBob · Posted: Mon Dec 17, 2007 1:38 pm Post subject:

I had Geico back in '93-'95. I got a speeding ticket (the only one I've ever had), and Geico dropped me like a hot potato. Well, the 'good' Geico anyway. I got a letter a few days later that said the 'risky-driver' division of Geico would take me at rates more than double what I was paying.

I just went to Allstate and they gave me the same insurance I had at Geico at a price that was actually lower than the 'good' Geico rate.

Two years after that, I switched to Progressive and lowered my rates about another 40%.

Now I'm back at Allstate and am actually paying less than I was 15 years ago.

MWCA · Joined: 30 Nov 2007 Posts: 1621 Location: Golden State

I have AAA for the wife and I. 2 vehicles. I priced Geico for the heck of it. Their cheapest rate in CA vs our AAA policy was around 200 to 300 dollars more.

I guess those accidents really jack up the rate Sad

FISH · Joined: 19 Nov 2007 Posts: 45 Location: Michigan

Be aware that insurance is a state regulated product, so each piece of advice you recieve may or not be applicable to you and your family. That being said, I would suggest you look at the type of vehicles you are insuring for your kids. Physical damage premiums (collision and comprehensive) are extremely high for young drivers. (Statistically they just have more accidents while they learn to become safe drivers.) If you can insure them on vehicles that don't need physical damage, the savings can sometimes be significant. Best of luck.

greenspam · Joined: 26 Feb 2007 Posts: 194 Location: east coast

thanx all..

i just got an online quote from Progressive for about $1,800 for 6 months.

i guess warren b. has lost another customer....
_________________
_______________________________________

as always,
peace,
greenie.

tommy_gunn · Posted: Mon Dec 17, 2007 2:29 pm Post subject:

Sorry Greenspam, I feel your pain, but do not deny you are getting what you deserve (so to speak)

You have a young, female, ticket/accident prone driver, and you live in New Jersey, one of the most difficult states to insure vehicles in the entire USA. There are VERY few insurers that do business any more in NJ. I am sure you are aware of that fact. So combine a difficult insurance market with a bad young driver = $$$$ rates.

Best advice: get your daughter a beater car that does not need comp+coll, only liability. This will chop the rate down A LOT. See if you can get them insured on their own policy. This may or may not be cheaper.
Reason: they get discounts for being on your policy (multi-car discount) and probably persistence discount (# of years insured with Geico)

I would do some immediate price shopping. I worked at Geico for a year, and can attest to the fact that their rating systems really only favor perfect drivers with top rated careers, degrees, or associations that get discounts. Anyone not in those categories does not get the top program, they get the indemnity or casualty rates. If you have young drivers with points, you will be in the casualty rate category for a long time.

Get out now.

If you can keep your vehicles and spin them off to another company, great. Personally if I could have Geico for my insurance, I would. They are a top notch 24/7 service that will be there for you. But again, that is if you are lucky in fall into the Geico preferred rates. Otherwise, get the heck out.
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"I love competition. And I want to win." R. Murdoch

tommy_gunn

Opponent Process · Joined: 18 Sep 2007 Posts: 2891 Location: San Diego, CA

stupid question:

why are you paying for your adult childrens' auto insurance?

tommy_gunn · Posted: Mon Dec 17, 2007 3:09 pm Post subject:

probably still in college .. my folks kept me on the family policy until I graduated.
_________________
"I love competition. And I want to win." R. Murdoch

greenspam · Joined: 26 Feb 2007 Posts: 194 Location: east coast

why pay for the kids insurance ? as tommygunn suggested,

yes, the kids are still in local community college, and they really only share 1 car for school and their part-time jobs. i figure as long as they are students, i will help them out as much as possible... and they are very aware that any accidents/tickets cause rate increases, and that someday soon they will be purchasing their own vehicles and insurance policies.

in my Progressive quote i elected to EXCLUDE both kids from comp/collision for my vehicle, which they have never and will never, ever, ever drive (my 2002 midnight blue miata).

also, Progressive apparently uses credit scores in their calculations, and they said mine was in the 86th percentile, so that was good newz...

i must admit i was so upset when i got this geico bill, even though "its only money", the thought of throwing an extra 7k per annum down the toilet did not sit well.

i will call progressive and give them vin #s and dl #s as tommygun suggested. thanx very much for all the help... especially tg
_________________
_______________________________________

as always,
peace,
greenie.

dm200 · Posted: Mon Dec 17, 2007 3:21 pm Post subject: Suggestion:

Look into getting a separate policy for your daughter. Title a car in her name, and get a policy on her car only. That might be better for you. I don't know that, but check it out.

IF you had done this BEFORE she had the accidents, then (I think) it would have gone against her policy and not on yours.

The answers may depend on your state.

dan

stratton · Joined: 04 Mar 2007 Posts: 7897 Location: Puget Sound

My dad was Driver Education teacher. The parents gave put me on their autos. If I did anything that raised the insurance rates *I* had to pay the extra. Grades go down voiding the grade discount; I pay. Get a ticket or in an accident, I pay. No pay, no drive. I didn't have any problems. When you're making minimum wage and paying university tuition free auto insurance is like getting paid to do homework.

Paul

tomd37 · Joined: 01 Mar 2007 Posts: 705 Location: Brentwood, TN

Greenspam,

While everything else is being discussed, how is your FICO credit score? A lower score can affect insurance rates as I understand it.
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Tom D.

magellan · Joined: 09 Mar 2007 Posts: 940

jeffyscott · Joined: 27 Feb 2007 Posts: 3119 Location: Wisconsin

bolt · Joined: 30 May 2007 Posts: 870 Location: Boston

[removed at request of poster]

Indexfan · Joined: 23 Sep 2007 Posts: 40

2 teenage drivers and 4 cars on my USAA auto policy. Daughter 17 and Son 19. Just received my policy renewal from USAA and my 6 month premium is $2496.00 as we have no accidents/tickets for our 4 drivers on policy. USAA is for miltary only as I'm retired military so be aware of the qualifications for USAA insurance. We pay $416.00 per month for our auto insurance.

When my kids got their license, I told them any at fault accidents/tickets will cause them to lose their nice cars and use public transportation, bus.
We can only help our children so much as they must accept responsibility for poor driving habits. Driving is a privilage not a right and poor drivers will always pay higher insurance rates.

The 4 cars we have on our policy are a 01 Focus Son,99 Toyota Rav Wife,
99 VW Jetta me, 06 Honda Accord Daughter. I ensured all of our vehicles had 4 cylinder engines as gas isn't getting any cheaper.

Our older cars only have liability and comprehensive with 1K deductable.
The Honda is fully insured with $500 deductables for Coll and comp.

My Daughter is very responsible and works 25 hours a week and is a Senior in HS. She pays her own auto insurance and a small car payment.
We did help her purchase her car with a big DP to ensure the monthly payment was affordable for her.

Young auto drivers are high risk and very expensive to insure. In your case I would recommend an older family sedan with liability only coverage for your Daughter. Ford Taurus, Buick Century or a Toyota Camary. Title car in her name. Shop around and look forward to the day the kids are 25 and off your policy.

Good Luck........Index Fan

Indexfan · Joined: 23 Sep 2007 Posts: 40

Sacramento, CA area

Index Fan

tommy_gunn · Posted: Wed Dec 19, 2007 2:07 pm Post subject: Re: Suggestion: