40+% increase in auto policy (GEICO) - normal?

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Topic Author
noraz123
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40+% increase in auto policy (GEICO) - normal?

Post by noraz123 » Wed Jun 12, 2019 4:11 pm

My wife and I were previously on separate auto insurance policies. I was with GEICO, and she was with State Farm.

When she bought a new car last July, we found it cheapest to both be insured with GEICO. We were quoted $711 for every 6 months for both our cars, and added her to my policy (one policy, two cars, two drivers). This past December, my insurance went up to $946. I just received my most recent bill for the next 6 months, and its is $1019. This is 43+% increase within first year.

I followed up with GEICO if this was normal rate hikes or if perhaps my quote was for a different amount of coverage. Their response was:
[From GEICO]
An increase in the number of serious accidents, as well as increasing costs associated with injury payments and auto repairs across the state, has led us to adjust premiums.
Thankfully, there is a competition and switching costs with insurance is low. So I will shop around. But want to know if others have seen similar increases in premiums in the first year, especially with GEICO

My wife and I have not filed any claims, have had any accidents or received any tickets. We reside in California if that matters.

Suggestions for other insurance companies to consider or sites to purchase insurance from are welcomed.

DSInvestor
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by DSInvestor » Wed Jun 12, 2019 4:14 pm

I insure with GEICO and have not seen an increase in rates. I am not in California.
Wiki

HawkeyePierce
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by HawkeyePierce » Wed Jun 12, 2019 4:18 pm

I had the same problem with Geico. Perfect driving record, no claims but every year my rates increased.

I switched to Liberty Mutual earlier this year.

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Flobes
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by Flobes » Wed Jun 12, 2019 4:20 pm

noraz123 wrote:
Wed Jun 12, 2019 4:11 pm
But want to know if others have seen similar increases in premiums in the first year, especially with GEICO
My first two renewals with GEICO, the semi-annual premium actually went down. It has been rising steadily since. I am not in California.

fabdog
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by fabdog » Wed Jun 12, 2019 4:20 pm

I just renewed Geico, no increase for me this year. I did get quotes this year, as I do every 2 years. Geico was lowest for me where I live.

There are many threads here on getting auto quotes with tons of advice, search in the box at upper right

There is no one size fits all best answer. You can get lots of quotes online as well as use a broker who represents multiple companies to get quotes

Mike

vu8
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by vu8 » Wed Jun 12, 2019 4:27 pm

This is a classic sales tactic. The company knows that customers are usually reluctant or think its too much of a hassle to switch their insurance. Therefore they are banking on the fact that the majority of customers would rather pay an increased rate than switching. When they do this to you, you shop for cheaper rates with same or better coverage and switch.

I was with nationwide. Every six months they raise my premium and every single time I call them and they replied with an increase in traffic accidents in my local area. Every single time. After a year and a half I realized that is their strategy [language removed by Moderator Misenplace] and switched to root insurance.

baritone
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by baritone » Wed Jun 12, 2019 4:43 pm

If you're a Costco member, get Ameriprise through them. Saved me a bundle.

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8foot7
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by 8foot7 » Wed Jun 12, 2019 4:46 pm

No way I would accept that when it is so easy to switch companies. Takes 10 minutes online.

For what it is worth, we have been with farm bureau and our premiums have actually decreased every six months for several periods now.

I firmly believe you ought to shop your auto every two years and your homeowners every 3-4 years, if only to keep everyone honest. You don’t necessarily have to switch even if your current carrier isn’t rock bottom but don’t be the frog in the warming pot.

LISD
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by LISD » Wed Jun 12, 2019 5:10 pm

I'm in CA, have had Geico for decades, and the last year they raised the price 24%. I'll be looking for other insurance.

dharma student
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by dharma student » Wed Jun 12, 2019 5:13 pm

Yes I just had this scam and am going to switch to AARP....got a notice my rates were going up due to a "negative credit report" Fearing ID theft, checked everything. Nothing. No debt, credit score 800+, called them. I have 1 CC BTW.. one line saying not enough revolving, another saying too many. They would not change. Dumping them and taking my homeowners too.

quantAndHold
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by quantAndHold » Wed Jun 12, 2019 5:19 pm

Auto insurance in CA is heavily regulated. If their rates went up that much, it’s because their claims went up that much.

Mine has gone down slightly the past couple of years, but it isn’t with Geico.

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HueyLD
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by HueyLD » Wed Jun 12, 2019 5:32 pm

I talked to a GEICO agent a few months ago and was informed of their pending "new and improved underwriting system that more accurately reflected the risk of each insured." I asked the agent what that meant, more specifically what that would do to my premiums.

He plugged my insurance information into the new underwriting software and my premiums would double even without any change to my claims records.

I think GEICO needs more revenues to pay for their $1 billion+ annual advertising budget.

bob60014
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by bob60014 » Wed Jun 12, 2019 5:35 pm

No increases or issues with Geico, in Illinois.

Topic Author
noraz123
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by noraz123 » Wed Jun 12, 2019 6:05 pm

baritone wrote:
Wed Jun 12, 2019 4:43 pm
If you're a Costco member, get Ameriprise through them. Saved me a bundle.
Thanks for this. I didn't know this was even an option. Checking them out now, as both my auto and renters insurance is with GEICO (albeit renters insurance is with Assurant via GEICO).

fabis
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by fabis » Wed Jun 12, 2019 6:23 pm

I would stay away from Geico. I work insurance claims and the worst company to negotiate with is Geico.

They are the epitome of "take premiums, don't pay claims". I pray to god you do not get hit and severely injured by an uninsured driver, you'll be in for a fight with your own company for your own uninsured motorist policy.

It may actually be cheaper to shop around for "Insurance Agents" and not "Insurance Companies". Some independent agents can get you deals with lesser known insurance companies who dabble in personal lines.

Trader Joe
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by Trader Joe » Wed Jun 12, 2019 6:32 pm

noraz123 wrote:
Wed Jun 12, 2019 4:11 pm
My wife and I were previously on separate auto insurance policies. I was with GEICO, and she was with State Farm.

When she bought a new car last July, we found it cheapest to both be insured with GEICO. We were quoted $711 for every 6 months for both our cars, and added her to my policy (one policy, two cars, two drivers). This past December, my insurance went up to $946. I just received my most recent bill for the next 6 months, and its is $1019. This is 43+% increase within first year.

I followed up with GEICO if this was normal rate hikes or if perhaps my quote was for a different amount of coverage. Their response was:
[From GEICO]
An increase in the number of serious accidents, as well as increasing costs associated with injury payments and auto repairs across the state, has led us to adjust premiums.
Thankfully, there is a competition and switching costs with insurance is low. So I will shop around. But want to know if others have seen similar increases in premiums in the first year, especially with GEICO

My wife and I have not filed any claims, have had any accidents or received any tickets. We reside in California if that matters.

Suggestions for other insurance companies to consider or sites to purchase insurance from are welcomed.
No, this increase is highly abnormal.

SC Anteater
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by SC Anteater » Wed Jun 12, 2019 7:05 pm

Californian here. . . . I've been with CSAA for years now and have only seen mildly incremental increases in rates. I shopped around for both auto and home this year, just to check, and they were definitely cheapest for the amount of coverage we have. It's worth the small annual membership fee.

Another bonus from them -- I can take my college age kids off the policy entirely except when they're home for more than 30 days. Saves me a bundle.

ERguy101
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by ERguy101 » Wed Jun 12, 2019 7:41 pm

I've just read about some service called Gabi that can help you shop car insurance. I've never used it, and I don't know if it works. But you apparently give them your login and they scan your insurance and get you multiple other quotes.

finite_difference
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by finite_difference » Wed Jun 12, 2019 8:12 pm

HawkeyePierce wrote:
Wed Jun 12, 2019 4:18 pm
I had the same problem with Geico. Perfect driving record, no claims but every year my rates increased.

I switched to Liberty Mutual earlier this year.
How much did you save by switching?

OP: did you contact Geico to ask about discounts (can also mention you are a shareholder, in some states they have a discount for that.)

Let us know how much you save if you end up switching.

For a HCOL area, honestly $2k/year for 2 cars doesn’t sound bad. How much are your deductibles? What are your coverage limits?
The most precious gift we can offer anyone is our attention. - Thich Nhat Hanh

HawkeyePierce
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by HawkeyePierce » Wed Jun 12, 2019 8:50 pm

finite_difference wrote:
Wed Jun 12, 2019 8:12 pm
HawkeyePierce wrote:
Wed Jun 12, 2019 4:18 pm
I had the same problem with Geico. Perfect driving record, no claims but every year my rates increased.

I switched to Liberty Mutual earlier this year.
How much did you save by switching?

OP: did you contact Geico to ask about discounts (can also mention you are a shareholder, in some states they have a discount for that.)

Let us know how much you save if you end up switching.

For a HCOL area, honestly $2k/year for 2 cars doesn’t sound bad. How much are your deductibles? What are your coverage limits?
I think it was about $200 a year in savings. I pay $460 a year now for $100/300 liability plus property damage and uninsured motorist coverage. No comp/collision because my car is paid off and not worth enough to warrant insuring.

Aku09
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by Aku09 » Wed Jun 12, 2019 8:57 pm

I switched to Geico from USAA about 2 years ago almost cutting my rate in half. Every 6 months since then my policy has increased in average 10%. No accidents or tickets. I have shopped it around, but it is still the lowest. On a side note my wife was rear ended a couple months ago and we got our renewal last week for the next 6 months and it actually went down slightly (only a couple %, but it’s better than going up)!

I will say when my wife got rear ended Geico was practically worthless. I called them to let them know what happened and gave the other parties information. Geico said if I want to talk with them and file it through my insurance I would have to pay my deductible and get it reimbursed. Otherwise I can call the other insurance company and handle it myself and she will log the accident on my record. The agent was almost rude about it and not helpful at all. Called State Farm (other parties insurance) and they were very helpful and got me fixed up).

BlueFin
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by BlueFin » Thu Jun 13, 2019 8:35 am

Yes, this is normal operating procedure for insurance companies. Once they get you as a customer by offering a low rate they assume you'll be too lazy to shop around so they start increasing prices. [Off-topic comment removed -- moderator oldcomputerguy]

batpot
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by batpot » Thu Jun 13, 2019 10:33 am

there's no such thing as customer loyalty in insurance.
Shop around.

KlangFool
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by KlangFool » Thu Jun 13, 2019 10:39 am

batpot wrote:
Thu Jun 13, 2019 10:33 am
there's no such thing as customer loyalty in insurance.
Shop around.
+1,000.

It pays to shop around every 1 to 2 years.

KlangFool

Jags4186
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by Jags4186 » Thu Jun 13, 2019 10:48 am

I used to be with Progressive and then with Geico. I used to shop around myself every 6 months wasting hours to not really save much money. Last year I went to a broker and I was able to get car insurance and homeowners insurance for the same price I was previously paying just for car insurance.

Depending on your state there could be over 100 insurance companies that do not sell direct to consumer and only through brokers. I recommend everyone explore that avenue.

Pros: the agent will shop around for you for free. Sure they don’t have access to every insurance company but the agent I work was able to get quotes from 15 insurance companies I wouldn’t be able to get on my own.

Cons: these are insurance companies you’ve probably never heard of, don’t advertise, don’t have 24-7 customer service, and have crappy websites. I’m willing to deal with that to save $1000/yr.

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Rob5TCP
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by Rob5TCP » Thu Jun 13, 2019 11:02 am

My auto insurance has gone down a fair amount over the last few years.
However, my umbrella policy went up 33% over 3 years.
When I called I received basically the same answer you did.
Since the umbrella is a the major part of my insurance costs, I stayed
with GEICO.

LISD
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by LISD » Thu Jun 13, 2019 11:03 am

And speaking of crappy websites and service, I just went on the Liberty Mutual website to find out if they offer umbrella coverage. On the website, there is no email address to contact them, and no chat feature, so I called them twice, and each time the phone was disconnected after 10 seconds. Wow - I'm staying away from them. If the service is that lousy trying to sell you their product, I would expect worse once your a customer.

Godot
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by Godot » Thu Jun 13, 2019 11:15 am

vu8 wrote:
Wed Jun 12, 2019 4:27 pm
This is a classic sales tactic. The company knows that customers are usually reluctant or think its too much of a hassle to switch their insurance. Therefore they are banking on the fact that the majority of customers would rather pay an increased rate than switching. When they do this to you, you shop for cheaper rates with same or better coverage and switch.

I was with nationwide. Every six months they raise my premium and every single time I call them and they replied with an increase in traffic accidents in my local area. Every single time. After a year and a half I realized that is their strategy [language removed by Moderator Misenplace] and switched to root insurance.
I'm with Farmers, and for last few years my home insurance has gone up by quite a bit. Their reason: "Severe weather patterns" in the state. I emailed agent and asked for evidence of the "severe weather patterns." Crickets.
“Estragon: I can't go on like this. | Vladimir: That's what you think.” ― Samuel Beckett, Waiting for Godot

Davie_100
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by Davie_100 » Thu Jun 13, 2019 2:42 pm

Geico just raised my premium by 44% also. My new vehicle was a Tesla Model 3 in 2018. This is my second renewal with the Model 3. There are many forum posts in other channels about the insurance companies hiking rates on Teslas across the board.

Been with Geico for maybe 10 years with no claims. Currently shopping around.

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noraz123
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by noraz123 » Thu Jun 13, 2019 3:30 pm

Davie_100 wrote:
Thu Jun 13, 2019 2:42 pm
Geico just raised my premium by 44% also. My new vehicle was a Tesla Model 3 in 2018. This is my second renewal with the Model 3. There are many forum posts in other channels about the insurance companies hiking rates on Teslas across the board.

Been with Geico for maybe 10 years with no claims. Currently shopping around.
OP here. This is good to know. My wife's car is a Tesla Model 3. Perhaps it is more because of the car.

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noraz123
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by noraz123 » Thu Jun 13, 2019 3:37 pm

finite_difference wrote:
Wed Jun 12, 2019 8:12 pm

OP: did you contact Geico to ask about discounts (can also mention you are a shareholder, in some states they have a discount for that.)

Let us know how much you save if you end up switching.

For a HCOL area, honestly $2k/year for 2 cars doesn’t sound bad. How much are your deductibles? What are your coverage limits?
I already have some discounts with GEICO. And you are spot on re: $2K for cars isn't that bad. I started shopping around last night, starting with the Costco/Ameriprise. Seems like my quotes are inline or slightly higher than what I am paying now with GEICO. Perhaps less of a case of paying too much vs. getting a decent price to start with.

Another poster (Davie_100) mentioned that s/he had seen rates go up by 44% for a Tesla Model 3, which is what my wife purchased. So I am wondering if rates have risen on that car specifically.

For now, seems like I will stick with GEICO for auto insurance. However, going to the Ameriprise/Costco site, I see that they offer renters insurance as well. While I won't save any money from switching from GEICO (technically Assurant), it looks like I can get better coverage for the same price.

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noraz123
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by noraz123 » Thu Jun 13, 2019 3:38 pm

KlangFool wrote:
Thu Jun 13, 2019 10:39 am
batpot wrote:
Thu Jun 13, 2019 10:33 am
there's no such thing as customer loyalty in insurance.
Shop around.
+1,000.

It pays to shop around every 1 to 2 years.

KlangFool
It sure does.

atdharris
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by atdharris » Thu Jun 13, 2019 3:59 pm

This was my worry. I am currently with USAA and pay about $1150 every 6 months. GEICO quoted me $607, but I was worried they would just jack up my rates once I switched. That, and a friend of mine who is a PI attorney said GEICO was awful if you ever needed to use them, and USAA was the best you could have.

I'm still considering a switch, but every other insurer I quoted outside of GEICO was on par with USAA.

regularguy455
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by regularguy455 » Thu Jun 13, 2019 4:09 pm

atdharris wrote:
Thu Jun 13, 2019 3:59 pm
This was my worry. I am currently with USAA and pay about $1150 every 6 months. GEICO quoted me $607, but I was worried they would just jack up my rates once I switched. That, and a friend of mine who is a PI attorney said GEICO was awful if you ever needed to use them, and USAA was the best you could have.

I'm still considering a switch, but every other insurer I quoted outside of GEICO was on par with USAA.
I wouldn’t pay 2x based on what someone said. You can always go back.

LISD
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by LISD » Thu Jun 13, 2019 4:56 pm

Costco/Ameriprice just quoted me HALF the rate for auto insurance as Geico ($546 every 6mos for 2 cars). Home and Umbrella were lower too but not by much.

atdharris
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by atdharris » Fri Jun 14, 2019 9:01 am

regularguy455 wrote:
Thu Jun 13, 2019 4:09 pm
atdharris wrote:
Thu Jun 13, 2019 3:59 pm
This was my worry. I am currently with USAA and pay about $1150 every 6 months. GEICO quoted me $607, but I was worried they would just jack up my rates once I switched. That, and a friend of mine who is a PI attorney said GEICO was awful if you ever needed to use them, and USAA was the best you could have.

I'm still considering a switch, but every other insurer I quoted outside of GEICO was on par with USAA.
I wouldn’t pay 2x based on what someone said. You can always go back.
That's my dilemma. I just worry if I sign up for GEICO and they jack my rates up 6 months later, it will be more of a hassle than it's worth. Granted, I have never used my auto insurance in the years I have been driving, but I also had never really needed dental insurance until I cracked a tooth and needed major surgery last year... you never know.

cherijoh
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by cherijoh » Fri Jun 14, 2019 9:27 am

Jags4186 wrote:
Thu Jun 13, 2019 10:48 am
I used to be with Progressive and then with Geico. I used to shop around myself every 6 months wasting hours to not really save much money. Last year I went to a broker and I was able to get car insurance and homeowners insurance for the same price I was previously paying just for car insurance.

Depending on your state there could be over 100 insurance companies that do not sell direct to consumer and only through brokers. I recommend everyone explore that avenue.

Pros: the agent will shop around for you for free. Sure they don’t have access to every insurance company but the agent I work was able to get quotes from 15 insurance companies I wouldn’t be able to get on my own.

Cons: these are insurance companies you’ve probably never heard of, don’t advertise, don’t have 24-7 customer service, and have crappy websites. I’m willing to deal with that to save $1000/yr.
Hopefully they are responsive if you have an accident. I always worry with no-name insurance companies if its like buying a cheap parachute.

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Abe
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by Abe » Fri Jun 14, 2019 9:46 am

Geico did the same thing to me. When I asked them for a lower rate, they said there was no way they could give me a lower rate. I found a lower rate with another company. When I called Geico to cancel my policy, they cut my premium in half. Since then they have been increasing my rate a little at a time, but it's still far below the original amount.
Slow and steady wins the race.

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rh00p
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by rh00p » Fri Jun 14, 2019 10:12 am

Same here with GEICO and Allstate. Attractive rates upon sign up then +24% at renewal.

Anyone know if there are repercussions when you develop a history of bouncing from company to company?
Preparing for the worst. Hoping for the best.

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dm200
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by dm200 » Fri Jun 14, 2019 10:14 am

Been with State Farm for 45+ years - have never had such an increase year to year.

stoptothink
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by stoptothink » Fri Jun 14, 2019 10:18 am

atdharris wrote:
Fri Jun 14, 2019 9:01 am
regularguy455 wrote:
Thu Jun 13, 2019 4:09 pm
atdharris wrote:
Thu Jun 13, 2019 3:59 pm
This was my worry. I am currently with USAA and pay about $1150 every 6 months. GEICO quoted me $607, but I was worried they would just jack up my rates once I switched. That, and a friend of mine who is a PI attorney said GEICO was awful if you ever needed to use them, and USAA was the best you could have.

I'm still considering a switch, but every other insurer I quoted outside of GEICO was on par with USAA.
I wouldn’t pay 2x based on what someone said. You can always go back.
That's my dilemma. I just worry if I sign up for GEICO and they jack my rates up 6 months later, it will be more of a hassle than it's worth. Granted, I have never used my auto insurance in the years I have been driving, but I also had never really needed dental insurance until I cracked a tooth and needed major surgery last year... you never know.
What hassle? It literally takes 5min to get various quotes and then switch over. We switch every few years and haven't had a claim ever. We switched 2yrs ago to Progressive; their quote was $341 for 6 months, our insurance and the time was nearly double and Geico quoted us like $500. It is ~$400 now, still less than other quotes.

FWIW, I had Geico in the past (but no claims), but my parents have Geico and have had like half a dozen claims in the last few years, including a totaled vehicle. Geico has been great for them.

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dm200
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by dm200 » Fri Jun 14, 2019 10:22 am

Since GEICO heavily advertises how much you can save with GEICO, what I might do is "pretend" you are not a GEICO customer and see what GEICO would offer you as a "new" customer. if that quote is a lot lower than your premium, that would sound like GEICO is doing a bait and switch. I hope not - but who knows?

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8foot7
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by 8foot7 » Fri Jun 14, 2019 10:24 am

stoptothink wrote:
Fri Jun 14, 2019 10:18 am
atdharris wrote:
Fri Jun 14, 2019 9:01 am
regularguy455 wrote:
Thu Jun 13, 2019 4:09 pm
atdharris wrote:
Thu Jun 13, 2019 3:59 pm
This was my worry. I am currently with USAA and pay about $1150 every 6 months. GEICO quoted me $607, but I was worried they would just jack up my rates once I switched. That, and a friend of mine who is a PI attorney said GEICO was awful if you ever needed to use them, and USAA was the best you could have.

I'm still considering a switch, but every other insurer I quoted outside of GEICO was on par with USAA.
I wouldn’t pay 2x based on what someone said. You can always go back.
That's my dilemma. I just worry if I sign up for GEICO and they jack my rates up 6 months later, it will be more of a hassle than it's worth. Granted, I have never used my auto insurance in the years I have been driving, but I also had never really needed dental insurance until I cracked a tooth and needed major surgery last year... you never know.
What hassle? It literally takes 5min to get various quotes and then switch over. We switch every few years and haven't had a claim ever. We switched 2yrs ago to Progressive; their quote was $341 for 6 months, our insurance and the time was nearly double and Geico quoted us like $500. It is ~$400 now, still less than other quotes.

FWIW, I had Geico in the past (but no claims), but my parents have Geico and have had like half a dozen claims in the last few years, including a totaled vehicle. Geico has been great for them.
Precisely. If it takes you 15 minutes to save $75 every six months, then you have earned $300 an hour and you have saved $150 for the year.

LiterallyIronic
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by LiterallyIronic » Fri Jun 14, 2019 10:32 am

We have Geico and the last time we renewed it went up by like a dollar month. Now we're at about $288 for six months (two drivers; two cars).

bryansmile
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by bryansmile » Fri Jun 14, 2019 10:38 am

Try to avoid 6 month policies. We all know price will increase at every renewal. With an 1 year policy, the price is locked in for one year, even if you have an accident during the year (east coast winters are bad and there're many crazy drivers here too).
And, you'd only have to price shop once a year, instead of twice a year.

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dm200
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by dm200 » Fri Jun 14, 2019 10:44 am

bryansmile wrote:
Fri Jun 14, 2019 10:38 am
Try to avoid 6 month policies. We all know price will increase at every renewal. With an 1 year policy, the price is locked in for one year, even if you have an accident during the year (east coast winters are bad and there're many crazy drivers here too).
And, you'd only have to price shop once a year, instead of twice a year.
Many, many decades ago - I had 12 month policies - but with State Farm - for the past 45+ years, I believe all have been six months. Do some (or many) companies commonly offer 12 month policies?

bryansmile
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by bryansmile » Fri Jun 14, 2019 10:59 am

dm200 wrote:
Fri Jun 14, 2019 10:44 am
Many, many decades ago - I had 12 month policies - but with State Farm - for the past 45+ years, I believe all have been six months. Do some (or many) companies commonly offer 12 month policies?
Yes, amica, liberty mutual, etc. And some regional companies I know that only do business in the east coast.
Last edited by bryansmile on Fri Jun 14, 2019 12:36 pm, edited 1 time in total.

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dm200
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by dm200 » Fri Jun 14, 2019 11:11 am

Any opinions or experience whether GEICOs "save 15% or more on car insurance" is bait and switch? or if there is a "catch"?

Just out of curiosity - I made the query to GEICO - and they said our premiums would go down about $9 or $10 a month from the current $68.

We are sticking with State Farm.

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dm200
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by dm200 » Fri Jun 14, 2019 11:14 am

Different issue - but I have had a car and car insurance continuously since my senior year of college - March 17, 1967. Even though the state of residence has changed from then and have had several different insurance companies - I always note that our car insurance spring renewal date is still March 17. :sharebeer

Hiker-Biker
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Re: 40+% increase in auto policy (GEICO) - normal?

Post by Hiker-Biker » Fri Jun 14, 2019 12:10 pm

Recently called USAA to get quotes if we move out of the DC area and Erie isn’t available. Bottom line, Erie has superior rates for auto, home owners, umbrella, and so-called inland marine.

I was pleasantly surprised that disposing of an eight year old compact car and adding a much more expensive late model CUV only raised our premium by about $100 (< $1100/year). I do take advantage of vanpooling to the office and my wife takes public transportation so we drive under 8500 miles per year giving us the lowest rates. Accident, violation free, and 800+ credit score help too.

When I was shopping around, I didn’t contact Geico due to reading stories where a customer’s rate was raised significantly due an accident or what I’m reading in this thread.

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