Geico insurance rate increase: 26.24% APY?

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triceratop
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Geico insurance rate increase: 26.24% APY?

Post by triceratop » Mon Mar 27, 2017 9:18 am

With no changes in personal situation (other than turning 25yo), my policy with Geico in the state of California increased 12.35% over the prior 6 month period, which is 26.24% APY. A call to a GEICO agent suggested that there was nothing personal (just business!) about my rate increase: it was across the board due to (1) cost of health insurance (2) more drivers on the road.

Apparently (1) and (2) together increased the cost by 26.24%APY. :shock:

Has anyone else seen a similar increase recently, either with Geico or another insurance provider? Should I trust Geico's explanation? I may begin shopping around, because that is hard to seriously believe. I have a trained distrust of insurers given recent news about Aetna's public statements vs. corporate strategy.,,
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Re: Geico insurance rate increase: 26.24% APY?

Post by why3not » Mon Mar 27, 2017 9:27 am

triceratop wrote:I may begin shopping around, because that is hard to seriously believe.
15 minutes online could save you 15% or more cuts both ways.

My guess is you lost your "good student discount" when you turned 25. It is usually worth at least price checking your insurance every few years while young. At some point in your life (hopefully) the effort of finding a 2 to 3-figure savings may not be worth it, but @ 25, it usually is.

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Re: Geico insurance rate increase: 26.24% APY?

Post by triceratop » Mon Mar 27, 2017 9:30 am

why3not wrote:
triceratop wrote:I may begin shopping around, because that is hard to seriously believe.
15 minutes online could save you 15% or more cuts both ways.

My guess is you lost your "good student discount" when you turned 25. It is usually worth at least price checking your insurance every few years while young. At some point in your life (hopefully) the effort of finding a 2 to 3-figure savings may not be worth it, but @ 25, it usually is.
full disclosure: I spent more than 15 minutes when originally selecting Geico. ;)

I thought that might have been it prior to the call, but the agent claimed I was still benefiting from the good student discount. At the same time, the evidence I have seen is inconclusive on whether the discount no longer applies when one turns 25 in my state. More research is needed. Thanks for the suggestion.
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Re: Geico insurance rate increase: 26.24% APY?

Post by dm200 » Mon Mar 27, 2017 9:37 am

triceratop wrote:With no changes in personal situation (other than turning 25yo), my policy with Geico in the state of California increased 12.35% over the prior 6 month period, which is 26.24% APY. A call to a GEICO agent suggested that there was nothing personal (just business!) about my rate increase: it was across the board due to (1) cost of health insurance (2) more drivers on the road.
Apparently (1) and (2) together increased the cost by 26.24%APY. :shock:
Has anyone else seen a similar increase recently, either with Geico or another insurance provider? Should I trust Geico's explanation? I may begin shopping around, because that is hard to seriously believe. I have a trained distrust of insurers given recent news about Aetna's public statements vs. corporate strategy.,,
How does "health insurance" affect an auto policy?

More drivers on the road? Aren't almost all of them insured?

I do not agree with your 26.24%. While you have a six month policy, my guess is that this may be an annual type increase.

One key here is the detailed breakdown of how each part of the coverage premium changed: Collision, comprehensive, liability, uninsured motorist, medical payments, towing, other? It would seem that with the same car, your collision/comprehensive should go down a bit as the car is older.

I thought rates went down at age 25?

Go through every detail of things that affect rates, such as annual mileage, driver details, how car is used, garaged location, etc. Over the decades (State Farm, Virginia) we have found that making sure all such details are correct (and adjusted as possible, such as which car is used for commuting and miles driven) can affect the premiums. We never carried towing, only had "medical payments" when child(ren) were young and at home (carpools, etc.), had high ($1,000) deductibles for collision/comprehensive.

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Re: Geico insurance rate increase: 26.24% APY?

Post by rigoodma » Mon Mar 27, 2017 9:41 am

I had the same thing happen to me back in November with AllState. I didn't calculate the APR, but it was a decent increase where I called them on it. Their response was that GA ranked 3rd on the number of accidents or accidents per driver (something like that). And they said they were hitting the customers with it now (ripping the bandaid off now - their words) instead of how other companies were doing it. However, they "assured" me I wouldn't have an increase once my next renewal comes up. We'll see what happens next month.

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Re: Geico insurance rate increase: 26.24% APY?

Post by triceratop » Mon Mar 27, 2017 9:43 am

dm200 wrote:
triceratop wrote:With no changes in personal situation (other than turning 25yo), my policy with Geico in the state of California increased 12.35% over the prior 6 month period, which is 26.24% APY. A call to a GEICO agent suggested that there was nothing personal (just business!) about my rate increase: it was across the board due to (1) cost of health insurance (2) more drivers on the road.
Apparently (1) and (2) together increased the cost by 26.24%APY. :shock:
Has anyone else seen a similar increase recently, either with Geico or another insurance provider? Should I trust Geico's explanation? I may begin shopping around, because that is hard to seriously believe. I have a trained distrust of insurers given recent news about Aetna's public statements vs. corporate strategy.,,
How does "health insurance" affect an auto policy?

More drivers on the road? Aren't almost all of them insured?

I do not agree with your 26.24%. While you have a six month policy, my guess is that this may be an annual type increase.

One key here is the detailed breakdown of how each part of the coverage premium changed: Collision, comprehensive, liability, uninsured motorist, medical payments, towing, other? It would seem that with the same car, your collision/comprehensive should go down a bit as the car is older.

I thought rates went down at age 25?

Go through every detail of things that affect rates, such as annual mileage, driver details, how car is used, garaged location, etc. Over the decades (State Farm, Virginia) we have found that making sure all such details are correct (and adjusted as possible, such as which car is used for commuting and miles driven) can affect the premiums. We never carried towing, only had "medical payments" when child(ren) were young and at home (carpools, etc.), had high ($1,000) deductibles for collision/comprehensive.
If one has personal injury coverage then the cost of health insurance would be expected to be a component.

I stated the 6 month rate as well as the annualized rate.

Geico does not charge lower fees automatically at age 25 as many believe: this much I confirmed with them before.

I am not primarily interested in the means to reduce price by changing coverage: I know that lower coverage often means lower premiums. My question concerns such a large increase for the same coverage over a 6 month period.
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Re: Geico insurance rate increase: 26.24% APY?

Post by stoptothink » Mon Mar 27, 2017 9:54 am

triceratop wrote: Apparently (1) and (2) together increased the cost by 26.24%APY. :shock:

Has anyone else seen a similar increase recently, either with Geico or another insurance provider?
In a matter of 2.5yrs, cost of my policy with esurance more than doubled. I did move literally 5 miles away, into a new city, but otherwise, no change in vehicles or coverage. I am now with Progressive, which is pretty close to half the cost.

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Re: Geico insurance rate increase: 26.24% APY?

Post by Abe » Mon Mar 27, 2017 10:11 am

It pays to shop around. My GEICO policy recently went up to $805.00 per 6 months for my car and truck. When I asked for a better price, they said there was no way they could do it for any less. I checked around and received a quote for $650ish for the same coverage with another company. When I called GEICO to cancel my policy, they said, "Oh, I see you qualify for our special discount for only $396.00." This was the same coverage that they had just quoted me $805.00 and there was "no way" they could do it for any less.
So, call GEICO and tell them to cancel your policy. Oh, and tell them it's nothing personal, just business.
Last edited by Abe on Mon Mar 27, 2017 11:20 am, edited 1 time in total.
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Re: Geico insurance rate increase: 26.24% APY?

Post by Trapper » Mon Mar 27, 2017 10:21 am

I would call two competitors, say Progressive and an Independant Agent and ask them for a quote with the current coverage you have. If you find the same coverage with another company for less,go for it and switch. Should take less then an hour to shop it.

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Re: Geico insurance rate increase: 26.24% APY?

Post by fsrph » Mon Mar 27, 2017 10:22 am

Geico raised my rates at last renewal. No claims by me so called them for clarification. They told me there was an increase in claims in my area hence the increase. I'm only a Geico customer a few years. I hope they didn't give me a teaser rate to switch. Oh well, I'll stick with Geico for now. The premium is still far less than State Farm.

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Re: Geico insurance rate increase: 26.24% APY?

Post by Nate79 » Mon Mar 27, 2017 10:55 am

Insurance rates are raised all the time. Call around and see if you can get a better price. Your rate went up 12% in 6 months. Sounds pretty normal. Not sure what calculating some APY value adds to the discussion.

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Re: Geico insurance rate increase: 26.24% APY?

Post by triceratop » Mon Mar 27, 2017 11:03 am

Thanks everyone.
Nate79 wrote:Insurance rates are raised all the time. Call around and see if you can get a better price. Your rate went up 12% in 6 months. Sounds pretty normal. Not sure what calculating some APY value adds to the discussion.
I find APY is how most think of rate increases: on a year to year basis. There is no telling what will happen in the future. Thank you for your very informative help.
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Re: Geico insurance rate increase: 26.24% APY?

Post by amd2135 » Mon Mar 27, 2017 11:07 am

We just paid our 6-month Geico car insurance bill a couple weeks ago. We saw a decrease of 12.76% with no change in coverage.

It does look like they made some major rate adjustments recently. Thankfully for us it was in our favor.

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Re: Geico insurance rate increase: 26.24% APY?

Post by batpot » Mon Mar 27, 2017 11:13 am

Yes, rates are generally going up across the board; State Farm reported $7 Billion loss in 2016.
http://www.insurancejournal.com/news/na ... 443224.htm

Time to shop around, but you may be disappointed to find that Geico is still the cheapest.
When your rate approaches that of Amica, switch to Amica.
Last edited by batpot on Mon Mar 27, 2017 11:14 am, edited 1 time in total.

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Re: Geico insurance rate increase: 26.24% APY?

Post by Gronnie » Mon Mar 27, 2017 11:14 am

Raising rates is par for the course with any and all carriers. It seems that the longer you stay with them without switching, the more they creep them up too (maybe figuring the consumer is loyal, too lazy to shop around, or both)?

Personal claims history is only one part of rates as well. Insurance is a pool of risk, so if the overall pool has had many claims or has seen an increase in risk, the rate is going to go up for everyone.

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Re: Geico insurance rate increase: 26.24% APY?

Post by AAA » Mon Mar 27, 2017 11:17 am

I have insurance through AARP with Hartford. Our car usage went down significantly during last year and the kids became very infrequent drivers after moving away, so I was expecting some reduction. Got the renewal policy recently and there's a $200 increase instead. They said rates went up in my geographic location. I'm getting quotes from other companies. Not much luck so far.

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Re: Geico insurance rate increase: 26.24% APY?

Post by mickroark » Mon Mar 27, 2017 11:49 am

Try Everquote.com. They will price every carrier all at once for you. I am 65 and as has happened, Nationwide gave me the best quote. Geico I think was second in price.

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Re: Geico insurance rate increase: 26.24% APY?

Post by baritone » Mon Mar 27, 2017 12:02 pm

I recently switched from Geico to Ameriprise (thru Costco) and save BIGLY.

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Re: Geico insurance rate increase: 26.24% APY?

Post by talzara » Mon Mar 27, 2017 4:47 pm

triceratop wrote:With no changes in personal situation (other than turning 25yo), my policy with Geico in the state of California increased 12.35% over the prior 6 month period, which is 26.24% APY. A call to a GEICO agent suggested that there was nothing personal (just business!) about my rate increase: it was across the board due to (1) cost of health insurance (2) more drivers on the road.
That's like buying a bond one day before it pays interest and saying that the dividend yield is 200%.

GEICO's rates in California are still lower than they were in 2010. The "APY" since 2010 has been negative. When they filed for their 2016 rate increase, their loss and DCC ratio was around 100%. GEICO breaks even at 80%. They're going to need about +25% of rate change to restore profitability in California.

If you thought +12.35% was bad, just wait. More rate increases are coming.

You should shop your policy around, but keep in mind that other companies will have a hard time being competitive. However, you won't know unless you try. You might fall right through the cracks of another company's actuarial model.

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Re: Geico insurance rate increase: 26.24% APY?

Post by Tycoon » Mon Mar 27, 2017 4:52 pm

One of the many reasons I dumped GEICO.
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Re: Geico insurance rate increase: 26.24% APY?

Post by talzara » Mon Mar 27, 2017 5:27 pm

batpot wrote:Yes, rates are generally going up across the board; State Farm reported $7 Billion loss in 2016.
http://www.insurancejournal.com/news/na ... 443224.htm

Time to shop around, but you may be disappointed to find that Geico is still the cheapest.
When your rate approaches that of Amica, switch to Amica.
State Farm Auto made a $7 billion underwriting loss on just $38.8 billion of earned premium. That's an 18% underwriting loss, which is high even for State Farm.

GEICO made an underwriting profit of $462 million on $25.5 billion of earned premium. That's a 1.8% profit, which is not bad considering how badly the rest of the auto insurance industry is doing.

Warren Buffett is expecting a 100th birthday present from GEICO when it knocks State Farm out of the #1 spot. The way things are going at State Farm, it's looking more like a 97th birthday present.

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Re: Geico insurance rate increase: 26.24% APY?

Post by talzara » Mon Mar 27, 2017 6:47 pm

AAA wrote:I have insurance through AARP with Hartford. Our car usage went down significantly during last year and the kids became very infrequent drivers after moving away, so I was expecting some reduction. Got the renewal policy recently and there's a $200 increase instead. They said rates went up in my geographic location. I'm getting quotes from other companies. Not much luck so far.
Traditional auto insurance does not give give much of a discount for low mileage cars. A car that is driven 1 mile a year will pay 80% the premium of a car that is driven 12,000 miles a year.

Depending on which state you live in, how many miles each car is driven each year, and how aggressively you drive, Usage Based Insurance (UBI) or Pay Per Mile (PPM) insurance may be an option. You would have to let the insurer monitor your driving, but in return, they are willing to give much more aggressive discounts for low-mileage cars.

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Re: Geico insurance rate increase: 26.24% APY?

Post by knpstr » Mon Mar 27, 2017 6:55 pm

Well, I have some potentially good news.

If your next 6 months stays about the same level as this increase (12% over last years rate), your APY for they year will go down to 12%!!

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Re: Geico insurance rate increase: 26.24% APY?

Post by drawpoker » Mon Mar 27, 2017 7:23 pm

How long have you been with Geico? Five, six, seven years?

All of the insurance companies are now doing what is called Price Optimization. SnakeFarm and a few others call it by a diff name: "predictive modeling"

they use data mining to target longtime customers and think they can identity (predict) which ones will meekly accept a hefty premium increase, swallow some b.s. line from the agent about why the increase, and not bolt.

We had a very lengthy thread on this a while back.

viewtopic.php?t=167811

By all means, do not accept this baloney the agent is dishing out and start comparing prices with other companies right away. As I recall, one of your fellow mods here contributed quite a bit to that thread 2 years ago because she was getting ripped off by SnakeFarm, she balked, and reported saving quite a bit of $$$ by switching companies.

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Re: Geico insurance rate increase: 26.24% APY?

Post by djmbob » Mon Mar 27, 2017 8:44 pm

We had a very lengthy thread on this a while back. viewtopic.php?t=167811
All interesting discussions as I have been with USAA for over 36 years.

Question: If insurers use credit scores to price your policies, do you take a hit on your credit score from each company you receive a quote?

Thanks in advance,
Cheers
Ray

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Re: Geico insurance rate increase: 26.24% APY?

Post by AAA » Tue Mar 28, 2017 7:45 am

talzara wrote:Traditional auto insurance does not give give much of a discount for low mileage cars. A car that is driven 1 mile a year will pay 80% the premium of a car that is driven 12,000 miles a year.
That seems to defy logic as I would think risk of accident is approximately proportional to number of miles driven.

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Re: Geico insurance rate increase: 26.24% APY?

Post by dm200 » Tue Mar 28, 2017 9:25 am

AAA wrote:
talzara wrote:Traditional auto insurance does not give give much of a discount for low mileage cars. A car that is driven 1 mile a year will pay 80% the premium of a car that is driven 12,000 miles a year.
That seems to defy logic as I would think risk of accident is approximately proportional to number of miles driven.
Yes - it does seem to "defy logic". Our State Farm policy has a threshhold of 7,500 miles per year per car. Now, in retirement my wife and I drive about 10,000 miles per year on TWO cars.

If this really is a significant issue (where the insurance company is earning much more in premiums related to risk on low mileage drivers), then it would seem to me that competition might cause it to change. BUT - it has not.

Maybe there are other risk and cost factors involved? Maybe (just a guess) low mileage drivers (on average) have higher risks per mile driven?

In some ways, we could get along with one car, but we are used to the convenience of each going and coming when we want. Having two cars also allows having two older (and less costly) cars instead of one, newer and more costly car. Some alternatives look somewhat promising (or a combination) such as short term rental (for some trips), ZIPCAR and car2go. We do not have this "opportunity", but in some situations folks can share a relative's or neighbor's car.

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Re: Geico insurance rate increase: 26.24% APY?

Post by stoptothink » Tue Mar 28, 2017 9:45 am

AAA wrote:
talzara wrote:Traditional auto insurance does not give give much of a discount for low mileage cars. A car that is driven 1 mile a year will pay 80% the premium of a car that is driven 12,000 miles a year.
That seems to defy logic as I would think risk of accident is approximately proportional to number of miles driven.
It does, but it's true...speaking as someone who, combined with his wife, drives <6k miles per year and whose 2nd car gets driven maybe 20 miles a month. When we moved so that I could walk to work and my wife's commute was ~3 miles, and showed over the next 1.5yrs that our driving was cut dramatically (by about 75%), our car insurance actually went up considerably, and I get quotes every 6-months. Driving much less dramatically decreases chances of automobile accidents and saves us on gas, but it has not saved us anything on insurance.

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Re: Geico insurance rate increase: 26.24% APY?

Post by jharkin » Tue Mar 28, 2017 10:46 am

Amica customer here, and Ive never seen these massive increases year over year that I hear in many complaints about the "discount" insurers. Typically our insurance premium decreases a few bucks each year as the car value decreases and along with it the cost of the collision part of the coverage.

Granted I am in Mass and our rates are more heavily regulated than in other states. Also 40+, married, stellar 800+ credit and clean driving records. In other words the lowest risk group for premiums.

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Re: Geico insurance rate increase: 26.24% APY?

Post by dm200 » Tue Mar 28, 2017 11:22 am

stoptothink wrote:
AAA wrote:
talzara wrote:Traditional auto insurance does not give give much of a discount for low mileage cars. A car that is driven 1 mile a year will pay 80% the premium of a car that is driven 12,000 miles a year.
That seems to defy logic as I would think risk of accident is approximately proportional to number of miles driven.
It does, but it's true...speaking as someone who, combined with his wife, drives <6k miles per year and whose 2nd car gets driven maybe 20 miles a month. When we moved so that I could walk to work and my wife's commute was ~3 miles, and showed over the next 1.5yrs that our driving was cut dramatically (by about 75%), our car insurance actually went up considerably, and I get quotes every 6-months. Driving much less dramatically decreases chances of automobile accidents and saves us on gas, but it has not saved us anything on insurance.
Each locality (where vehicle is 'garaged') may have different insurance rates, and the "mix" between collision, comprehensive, property liability and injury liability can change as well.

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Re: Geico insurance rate increase: 26.24% APY?

Post by cleosdad » Tue Mar 28, 2017 1:53 pm

jharkin wrote:Amica customer here, and Ive never seen these massive increases year over year that I hear in many complaints about the "discount" insurers. Typically our insurance premium decreases a few bucks each year as the car value decreases and along with it the cost of the collision part of the coverage.

Granted I am in Mass and our rates are more heavily regulated than in other states. Also 40+, married, stellar 800+ credit and clean driving records. In other words the lowest risk group for premiums.
You are lucky. I live in Co. and my Amica policy renews next month. I have home,car, and umbrella and no claims or tickets. Homeowners is going up 16% and I have never had a decrease on any policy. I shopped through an agent and Travelers was a little cheaper but I am staying with Amica although I will keep shopping around.

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Re: Geico insurance rate increase: 26.24% APY?

Post by talzara » Tue Mar 28, 2017 2:20 pm

AAA wrote: That seems to defy logic as I would think risk of accident is approximately proportional to number of miles driven.
Crash risk is almost directly proportional to miles driven. Once you take out the other actuarial factors, the residual mileage risk is almost a straight line. Insurers have known about this for almost 100 years.

The problem is that many people underreport their mileage. Since insurance policies are billed prospectively, the insurer can never capture the lost miles. If the insurer finds out about the mileage and raise their rate, that person could just switch to another insurance company and start over with another low-mileage discount.

That's why the low-mileage discounts are so small with traditional insurance policies.

You really have to switch to a Usage Based Insurance or Pay Per Mile policy to get the real discounts.

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Re: Geico insurance rate increase: 26.24% APY?

Post by Alexa9 » Tue Mar 28, 2017 2:24 pm

I find most companies that charge you a monthly fee try to raise the rate eventually. Threaten to switch or switch every year or two if they play these games.

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Re: Geico insurance rate increase: 26.24% APY?

Post by talzara » Tue Mar 28, 2017 3:02 pm

dm200 wrote: If this really is a significant issue (where the insurance company is earning much more in premiums related to risk on low mileage drivers), then it would seem to me that competition might cause it to change. BUT - it has not.

Maybe there are other risk and cost factors involved? Maybe (just a guess) low mileage drivers (on average) have higher risks per mile driven?
Low-mileage drivers are a higher risk per mile, because they do more city driving and less highway driving. However, most of the additional risk is already captured in the other rating variables.

GEICO has long offered a 3,000 mile discount in most states. This allows them to skim off the very low-mileage drivers from insurers that are using a 7,500 mile discount.

In the last 10 years, Usage Based Insurance has become available. Because the insurer is monitoring your driving, they can distinguish city driving from highway driving and adjust for the relative risks. Depending on the company and the state, a car that is driven 1 mile can pay 50% to 80% as much as a car that is driven 12,000 miles.

Pay Per Mile insurance is now available in some states. Depending on the company and the state, a car that is driven 1 mile can pay 15% to 40% as much as a car that is driven 12,000 miles.

UBI and PPM policies are still in their infancy in the United States. Eventually, they're going to skim off the low-mileage drivers from the traditional insurance policies. UBI policies have made more inroads in Great Britain and Italy, but people in those countries are less privacy-conscious than Americans.

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Re: Geico insurance rate increase: 26.24% APY?

Post by Phineas J. Whoopee » Tue Mar 28, 2017 8:48 pm

It isn't recent but GEICO slightly more than doubled my semiannual auto insurance premium for the same coverage and limits on the same car at the same address one time, with no claims and no violations, not so much as a parking ticket which doesn't even count, and no change to my employment or credit. When I shopped around they still were the least expensive available to me. Their competitors had done roughly the same to my cohort. Best of luck, sincerely, in your situation.
PJW

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Re: Geico insurance rate increase: 26.24% APY?

Post by kiddoc » Tue Mar 28, 2017 9:33 pm

Abe wrote:It pays to shop around. My GEICO policy recently went up to $805.00 per 6 months for my car and truck. When I asked for a better price, they said there was no way they could do it for any less. I checked around and received a quote for $650ish for the same coverage with another company. When I called GEICO to cancel my policy, they said, "Oh, I see you qualify for our special discount for only $396.00." This was the same coverage that they had just quoted me $805.00 and there was "no way" they could do it for any less.
So, call GEICO and tell them to cancel your policy. Oh, and tell them it's nothing personal, just business.
LOL, same think happened with me and GEICO, except they told me, "we are able to offer you this one time special rate as we recently revised the rate chart in your state". This when they had said 12 hours ago that the increase is justified and there is nothing else they can offer. Somehow, GEICO seems to find new rules offering deep discounts as soon as you call to cancel :P
"The four most dangerous words in investing are: 'this time it's different.'" - Sir John Templeton

Beensabu
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Re: Geico insurance rate increase: 26.24% APY?

Post by Beensabu » Tue Mar 28, 2017 11:07 pm

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Last edited by Beensabu on Wed Jun 21, 2017 12:44 am, edited 1 time in total.

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jharkin
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Re: Geico insurance rate increase: 26.24% APY?

Post by jharkin » Wed Mar 29, 2017 6:09 am

cleosdad wrote: You are lucky. I live in Co. and my Amica policy renews next month. I have home,car, and umbrella and no claims or tickets. Homeowners is going up 16% and I have never had a decrease on any policy. I shopped through an agent and Travelers was a little cheaper but I am staying with Amica although I will keep shopping around.
Yeah, but we are not talking about homeowners in this thread - we are talking about auto. Its my auto that stays pretty much flat or declining.

Yes, my Amica home went up this year as well - a similar %. They increase my home rebuilding cost estimate by about 5% and I had a big claim last year. Some years it goes up significant like that, other years it barely changes. I ran some rough numbers and for the last decade or so it looks like its averaged about a 5-6% annual increase.

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Re: Geico insurance rate increase: 26.24% APY?

Post by nps » Wed Mar 29, 2017 7:01 am

knpstr wrote:Well, I have some potentially good news.

If your next 6 months stays about the same level as this increase (12% over last years rate), your APY for they year will go down to 12%!!

:beer
Even better, using OP's math (compare current 6 mo premium to last then annualize) the APY would go to zero.

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Sandtrap
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Re: Geico insurance rate increase: 26.24% APY?

Post by Sandtrap » Wed Mar 29, 2017 9:11 am

Wow. 26.24%
Perhaps regional adjustment and claims costs. HCOL. California, Hawaii, DC, etc. vs Montana, Kansas, Iowa. . . . +- demographics +- actuarial stats.
My insurance is less than half between DW and I. Perhaps a combo of HCOL to LCOL move, city to rural, "senior age-isms", retired vs no commutes, cheaper cars, +- actuarial stats. (not an expert) We use USAA for auto, Allstate for homeowners and business. We compare annually but still best rates over 30 years.

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Re: Geico insurance rate increase: 26.24% APY?

Post by Trapper » Wed Mar 29, 2017 11:56 am

I hope the OP reports back to us on what he did!

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triceratop
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Re: Geico insurance rate increase: 26.24% APY?

Post by triceratop » Wed Mar 29, 2017 12:05 pm

nps wrote:
knpstr wrote:Well, I have some potentially good news.

If your next 6 months stays about the same level as this increase (12% over last years rate), your APY for they year will go down to 12%!!

:beer
Even better, using OP's math (compare current 6 mo premium to last then annualize) the APY would go to zero.
lol, good point. My APY calculation was not meant entirely seriously but added for shock value. I include the 6 month rate change as well and of course I understand the limitations. My only point with the APY change is that my rate had remained essentially unchanged for a year prior. Did the factors they describe really increase at that rate over the 6 month time period?

Of course, I will report back with what I decide.
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."

talzara
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Re: Geico insurance rate increase: 26.24% APY?

Post by talzara » Wed Mar 29, 2017 7:26 pm

triceratop wrote: lol, good point. My APY calculation was not meant entirely seriously but added for shock value. I include the 6 month rate change as well and of course I understand the limitations. My only point with the APY change is that my rate had remained essentially unchanged for a year prior. Did the factors they describe really increase at that rate over the 6 month time period?
Not over 6 months, but over the last 3 years.

GEICO last filed for a rate increase in 2013. They have absorbed 3 years' worth of cost increases without taking a rate change. The longer they wait, the bigger the cumulative rate increase.

As I explained above, GEICO was losing money hand-over-fist in California. They're still losing money after the 2016 rate increase. GEICO will have to take some more large rate increases over the next few years in California.

Almost there
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Re: Geico insurance rate increase: 26.24% APY?

Post by Almost there » Thu Aug 17, 2017 12:05 pm

mickroark wrote:
Try Everquote.com. They will price every carrier all at once for you. I am 65 and as has happened, Nationwide gave me the best quote. Geico I think was second in price.
Has anyone else used everquote?

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Re: Geico insurance rate increase: 26.24% APY?

Post by bottlecap » Thu Aug 17, 2017 12:33 pm

Had to laugh at the "APY" calculation. I guess any increase in a 6 month policy doubles the yearly increase percentage!

JBTX
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Re: Geico insurance rate increase: 26.24% APY?

Post by JBTX » Thu Aug 17, 2017 11:35 pm

I don't recall how much, probably not 26%, but my GEICO auto policy did jump substantially. I called and asked seemed like it was some sort of across the board increase - and they did increase in two consecutive 6 mo periods.

I probably should shop around again. I haven't been terribly pleased with them - I was in 3 accidents, not my fault at all (standing still) and still ate a $1000 deductible on two of them. In theory they are supposed to pursue the at fault party, but it was obvious they don't waste too much time doing it. I'm not sure if other Ins cos are better in that respect.

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Re: Geico insurance rate increase: 26.24% APY?

Post by Ruger » Fri Aug 18, 2017 1:13 am

triceratop wrote:
Mon Mar 27, 2017 9:18 am
With no changes in personal situation (other than turning 25yo), my policy with Geico in the state of California increased 12.35% over the prior 6 month period, which is 26.24% APY. A call to a GEICO agent suggested that there was nothing personal (just business!) about my rate increase: it was across the board due to (1) cost of health insurance (2) more drivers on the road.

Apparently (1) and (2) together increased the cost by 26.24%APY. :shock:

My rates have gone way up over the last six months and I called State Farm to see what was going on. They gave me the same excuses they gave you.
I checked rates on line with Geico and Progressive and they wasn't enough of a difference to make me want to switch.

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Re: Geico insurance rate increase: 26.24% APY?

Post by BarbK » Fri Aug 18, 2017 6:51 am

I was with Geico for 4 years and my increases ranged from $60-$70 every 6 months. This August it went to $1032 and just passing the $1K mark made me look elsewhere.

I went with Progressive and my bill was $592 for the exact same coverage saving $440 for the 6 months. I had been with Progressive for 7 years prior to Geico and had used their snapshot devices before.

When I called Geico to cancel my policy they asked if Progressive was giving me the 'new customer' discount rate. Probably, but even so it should take a few years to reach $1K+.

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Re: Geico insurance rate increase: 26.24% APY?

Post by Church Lady » Sat Aug 19, 2017 8:49 am

Wow, reading this thread, I am feeling very lucky. By retiring and moving to a new state, GEICO dropped my rates by over $300/year. That sounds great to me, but I have no idea how that compares to what my new neighbors are paying. :D

GEICO did tell me they were using a 3rd party to calculate my quote, and it would take into account my credit history! Is this even legal???? I must have remembered to pay my bills.

Maybe they cut rates for all the retirees. We have plenty to time to shop rates!
He that loveth silver shall not be satisfied with silver; nor he that loveth abundance with increase: this is also vanity. Ecclesiastes 1:8

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Re: Geico insurance rate increase: 26.24% APY?

Post by Jehman » Wed Mar 14, 2018 11:12 am

I can verify that my bill has increased 21% from the previous billing through GEICO.

My bill July-Dec2017 was $847 while the latest bill Jan-July2018 is $1028. I've been a GEICO member for over 20years and never had a faulted accident. Maybe have three claims during that whole time and none in the last 5years. They claim it was due to some California regulation change.
I have three cars insured through them in California.

GEICO has decided to take its most loyal customers and screw them. Corporate greed has found a new home. I will be finding a new insurer shortly.

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