GEICO auto rates vs. USAA: too good to be true?

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msa6
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GEICO auto rates vs. USAA: too good to be true?

Post by msa6 » Tue Mar 07, 2017 3:15 pm

No kidding...I was just reading Buffett's recent letter where he tells those coming to his annual meeting to stop by the GEICO booth for an insurance check up. This prompted me to do a quick comparison of what I pay USAA, who has insured my cars for years, with GEICO's rates. With the 8% discount that I was able to qualify for, GEICO's rates are 57% cheaper, with slightly lower collision deductibles.

USAA has been great, but I own four cars (don't ask) and the differential with GEICO is some serious money...enough to make me question if it could possibly be too good to be true. USAA suggested that GEICO is known to jack rates after a six month teaser. Anyone experience this? Any other reasons to be suspect? Needless to say, I have less than the usual skepticism doing business with a wholly-owned Buffett company...though he is the largest shareholder in Wells Fargo, and we all know they haven't always treated their customers properly.

Thanks!

Elena
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by Elena » Tue Mar 07, 2017 3:33 pm

msa6 wrote:No kidding...I was just reading Buffett's recent letter where he tells those coming to his annual meeting to stop by the GEICO booth for an insurance check up. This prompted me to do a quick comparison of what I pay USAA, who has insured my cars for years, with GEICO's rates. With the 8% discount that I was able to qualify for, GEICO's rates are 57% cheaper, with slightly lower collision deductibles.

USAA has been great, but I own four cars (don't ask) and the differential with GEICO is some serious money...enough to make me question if it could possibly be too good to be true. USAA suggested that GEICO is known to jack rates after a six month teaser. Anyone experience this? Any other reasons to be suspect? Needless to say, I have less than the usual skepticism doing business with a wholly-owned Buffett company...though he is the largest shareholder in Wells Fargo, and we all know they haven't always treated their customers properly.

Thanks!
My old co., Liberty Ins., suggested the same rate hiking after 6 mo. possibility. I switched to Geico. My first 6 mo. were fine. Renewal came up to be some $10 higher. Whether that is rate hiking or not it is for the consumer to judge, but so far I have saved over half of what I used to pay to Liberty yearly. No claims, so cannot speak for that.

mckaydw
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by mckaydw » Tue Mar 07, 2017 3:57 pm

I've been wondering about my USAA insurance. My cars are getting nothing but older, but somehow my premiums always go up. I got a quote from Geico and it was lower. Does anyone here have experience with GEICO, especially if they had to make a claim?

Do all insurance companies slowly raise your rates, making it advantageous to switch companies every few years?

goingup
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by goingup » Tue Mar 07, 2017 3:59 pm

I won't switch because we only have only one low mileage car on USAA, along with home and term-life. If I were to shop around, I'd check out Amica too. Then you'll know if GEICO quote is especially good. :beer

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Taylor Larimore
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Re: GEICO auto rates

Post by Taylor Larimore » Tue Mar 07, 2017 4:05 pm

Bogleheads:

After 10+ years at State Farm, three years ago I decided to get a quote form GEICO.

The premium was almost half so I switched.

I've had 2 renewals and the premium was not changed. :happy

Best wishes.
Taylor
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yearzero
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by yearzero » Tue Mar 07, 2017 4:21 pm

I'm a USAA member. Got a homeowner and auto quote from USAA, twice. Both were 50% higher than Geico/Liberty Mutual for same coverage, 850+ credit score.

If you like money, you should NOT be insured through USAA.

I've used Geico now for 10 years. Premium goes up 2%-7% a year, no claims, which I hate but every few years I'll check rates elsewhere and they are never close.
"Don't waste your time, or time will waste you"- Muse-Knights of Cydonia

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Re: GEICO auto rates vs. USAA: too good to be true?

Post by flamesabers » Tue Mar 07, 2017 4:29 pm

msa6 wrote:No kidding...I was just reading Buffett's recent letter where he tells those coming to his annual meeting to stop by the GEICO booth for an insurance check up. This prompted me to do a quick comparison of what I pay USAA, who has insured my cars for years, with GEICO's rates. With the 8% discount that I was able to qualify for, GEICO's rates are 57% cheaper, with slightly lower collision deductibles.

USAA has been great, but I own four cars (don't ask) and the differential with GEICO is some serious money...enough to make me question if it could possibly be too good to be true. USAA suggested that GEICO is known to jack rates after a six month teaser. Anyone experience this? Any other reasons to be suspect? Needless to say, I have less than the usual skepticism doing business with a wholly-owned Buffett company...though he is the largest shareholder in Wells Fargo, and we all know they haven't always treated their customers properly.

Thanks!
I wouldn't dismiss the possibility that any car insurance company would offer teaser rates to lure in new customers.

Before you consider whether to switch to GEICO or not, I recommend going through your USAA policy thoroughly to see if you're paying for more coverage then you really need. For instance, do you need full coverage on all four cars? Do you have an appropriate amount of mileage for each car on your policy? Can you put one or more of your cars in storage? Have you asked USAA if there are any discounts you can get on your policy?

If you still aren't able to get a more favorable price after doing all that, switch to GEICO.

Brewman
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by Brewman » Tue Mar 07, 2017 4:33 pm

Similar experience for my daughter. She was initially with liberty mutual when she moved out of state. She got a quote from Geico that was half the LM rate she was paying for virtually the same coverage. LM warned her that Geico was famous for giving a teaser rate that they would bump up after 6 months. She went with Geico and just had her 6 month renewal and the rate stayed exactly the same! Go figure?

msa6
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by msa6 » Tue Mar 07, 2017 4:37 pm

Before you consider whether to switch to GEICO or not, I recommend going through your USAA policy thoroughly to see if you're paying for more coverage then you really need. For instance, do you need full coverage on all four cars? Do you have an appropriate amount of mileage for each car on your policy? Can you put one or more of your cars in storage? Have you asked USAA if there are any discounts you can get on your policy?
I agree that it's worth looking to see if we have more coverage than we need. But the rate comparison I noted above (57% less for GEICO) is based on comparable coverage (actually slightly lower collision deductible for GEICO). We need all four cars...for the time being. And when I shared the GEICO rate information with USAA they did nothing other than suggest that I'm probably seeing a teaser rate.

I will certainly go back to them one more time before making the switch, to give them another opportunity to offer to reduce my rate. But I suspect the differential is too great.

Thanks for the quick replies.

misterno
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by misterno » Tue Mar 07, 2017 4:42 pm

I have been with GEICO for 11 years

I have 2009 Toyota Yaris and a 2016 Toyota RAV4 XLE

Paying only liability $330 every 6 months

Love it

Oh, I never had an accident

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Re: GEICO auto rates vs. USAA: too good to be true?

Post by afan » Tue Mar 07, 2017 5:20 pm

I shop auto and homeowners every few years. Every time our State Farm rates have been MUCH lower than other quotes, including GEICO. We have been with SF for a long time, no claims, low risk environment, etc. Apparently the kind of customers SF wants.

Without our various longevity discounts the costs would be higher but still better than what we are quoted elsewhere. With them, no one has come close.

Insurance pricing depends on so many variables that everyone has to shop for themselves.
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by High Income Parent » Tue Mar 07, 2017 5:23 pm

I look every year for the best deals and Allstate has been the cheapest for us the last 3 years where I live. I have both home and auto with them so there is a multi policy discount but they maybe worth looking into.
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by Rob5TCP » Tue Mar 07, 2017 5:27 pm

When I first bought a car in NYC, 20+ years ago, GEICO was literally 50-60% below comparable bids. I also thought there must be something wrong. Every 5 years or so I do a comparison and GEICO still comes out way below.. Only one quote was lower than GEICO and I could find nothing definitive about the insurance company (certainly not a well known one).

It's gotten a little better with the discount for owning Berkshire Hathaway.

NDfan27
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by NDfan27 » Tue Mar 07, 2017 5:33 pm

Brewman wrote:Similar experience for my daughter. She was initially with liberty mutual when she moved out of state. She got a quote from Geico that was half the LM rate she was paying for virtually the same coverage. LM warned her that Geico was famous for giving a teaser rate that they would bump up after 6 months. She went with Geico and just had her 6 month renewal and the rate stayed exactly the same! Go figure?
That's funny because Liberty Mutual did exactly that to me. They've been raising my premium by 20% each year for the last few years but this year will be the first where they're higher than the previous quotes I received.

I'm shopping around again. Thought I'd try the independent agent route as well.

bigred77
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by bigred77 » Tue Mar 07, 2017 5:46 pm

I had Geico for years, even had a claim, and my experience was very good.

Then I shopped around and USAA was priced the best. I had a claim with them too, no complaints.

Then a few years later I shopped around again and Amica was the best priced. Very happy with them, no claims so far, no complaints.

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Re: GEICO auto rates vs. USAA: too good to be true?

Post by Chuck » Tue Mar 07, 2017 5:54 pm

I've used GEICO for 10 years. At the time, they charged half what I was paying with Progressive. I don't feel that I've been teased by a teaser rate. I have an insurance broker that tries to beat them every year or two, and they don't come close. I've had two claims with GEICO and the experience was fine. No noticeable rate hike due to the claims.

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Re: GEICO auto rates vs. USAA: too good to be true?

Post by FRANK2009 » Tue Mar 07, 2017 5:57 pm

I had GEICO for auto insurance for several years with only small rate increases annually. One year they raised the premium by about 30%. No tickets or accidents, car was a year older too. I figured they didn't want my business. Found Amica for both home and auto and so far so good. It seems that consumer oriented publications and consumer advocate type people recommend shopping insurance every 2 years to check rates.

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Re: GEICO auto rates vs. USAA: too good to be true?

Post by stockfuturist » Tue Mar 07, 2017 6:46 pm

Just switched to Gieco from State Farm and saved ~50% on two cars. State Farm was outrageous, $2600/yr for two excellent 35 yr old drivers, a 2016 car and a 2011 car. Geico is $1400/yr for better coverage. I had State Farm for 15 years and they were taking advantage of me with high rates and poor coverage (my fault for not researching when we came back to the states 2 years ago).

BanditKing
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by BanditKing » Tue Mar 07, 2017 7:15 pm

I was a USAA member from the time I was 15 until age 44, which was two years ago, then I switched to Geico because it was almost 50% cheaper despite adding my wife and a second brand new car.

I think what saddened me more is that nobody from USAA even raised an eyebrow. USAA was like that perfect "Friend" that was always there since I was a teen, at least it always felt that way. Nobody contacted to say "Why are you leaving after 30 years?" or "We'd love a chance to win back your business". Clearly loyalty meant little to nothing.

I also moved all my banking away from them, and recently paid off my auto loan they held - so now I have really zero connection with them any more. I'm going to shop around this summer for insurance, so I'll give them a chance to price it out, but I'm not very hopeful.

TylerS7
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by TylerS7 » Tue Mar 07, 2017 7:23 pm

I have my auto, homeowners, and umbrella policy with usaa. Hypothetically if I were to switch to geico, what would I use for a homeowners and umbrella? I thought usaa required that you have all of your properties and cars insured with them in order to have an umbrella. Maybe that's not the case for other companies.

Jags4186
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by Jags4186 » Tue Mar 07, 2017 7:25 pm

I shop my auto insurance every 6 months. Geico has been cheapest for 3 years running. Be careful when shopping insurance sometimes you don't notice they're not giving you the coverage you previously had.

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Re: GEICO auto rates vs. USAA: too good to be true?

Post by Tycoon » Tue Mar 07, 2017 7:39 pm

My experience with GEICO was they raised my rates every year. Same with State Farm, Allstate, Farmers, and all the other insurance companies I've uncerimoneously dumped.

With GEICO I got angry seeing the same save 15% commericials every two minutes so I called them to save 15%. They didn't have any savings for this multiyear customer so I went to another company and saved 35%.

Amica hasn't raised my rates so I'm still with them.
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by kmurp » Tue Mar 07, 2017 7:54 pm

Longtime Geico customer who switched to Liberty Mutual last year. I did so because I'm saving $ over Geico. As was stated earlier, shop your policies around every few years. It is a pain though with homeowners and umbrella to do as a package.

spammagnet
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by spammagnet » Tue Mar 07, 2017 9:23 pm

I've been an AMICA customer for 20+ years. Customer service has always been good. The fact that I live in Florida (hurricane country) and they were willing to insure my house was important. Occasional efforts to find other full-service underwriters resulted in no reason to change.

We moved last year and they wouldn't insure our new residence because a sinkhole was detected within some ridiculously large radius. We had to look elsewhere with short notice. That started the slide away from them.

When our auto policies rolled around, I shopped in earnest. GEICO was the cheapest, by far, a 35% decrease. (USAA was not an option.) While I acknowledge that some savings came from adjusting the coverage on older cars, most of the savings was the simple fact that GEICO is cheaper.

They don't do homeowner's in Florida but they do offer umbrella. The package is much cheaper than the next best offer. I haven't had a claim but customer service had been good for the queries I've made since we opened the policy.

Maybe GEICO will raise our rates over time but they have a long way to go before we have reason to change. I'll probably do comparison shopping more frequently now, though.

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Re: GEICO auto rates vs. USAA: too good to be true?

Post by LarryAllen » Tue Mar 07, 2017 9:27 pm

Would love to hear more about Geico on homeowners and umbrella too? What about rental properties?

spammagnet
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by spammagnet » Tue Mar 07, 2017 9:28 pm

TylerS7 wrote:... Hypothetically if I were to switch to geico, what would I use for a homeowners and umbrella? I thought usaa required that you have all of your properties and cars insured with them in order to have an umbrella. Maybe that's not the case for other companies.
I have homeowner's through a separate underwriter and auto through GEICO. GEICO doesn't offer homeowner's in Florida but will write umbrella policies with auto coverage as long as your homeowner's liability limits meet their requirements.

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TimeRunner
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by TimeRunner » Tue Mar 07, 2017 9:34 pm

We have homeowners' thru USAA, and GEICO for two cars, motorcycle, and $2M liability. Just had rock chip in windshield fixed free thru Geico claim, with no ding on insurance claims. (They'd rather pay to fix a chip if possible than chip in on a new windshield. Me too.)
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by CincyGuy » Tue Mar 07, 2017 9:56 pm

Very timely post. I just switched from AAA insurance to Geico and saved about 50%. Premiums went from $1400 to about $700 for 2 autos. Hope the premiums stay the same at renewal time!

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Re: GEICO auto rates vs. USAA: too good to be true?

Post by k4carbon » Tue Mar 07, 2017 11:07 pm

I have been with USAA for decades and use them for home, auto, valuable personal property, and umbrella liability insurance. I think USAA has different internal insurance companies with different fee structures depending upon your membership type. I was active military and reserve officer. I have the USAA "savings account" with approx. $10K in it that USAA has paid into each year and I usually get a $150 -$250 distribution each year depending on their profitability previous year. These factors make USAA insurance fees more reasonable and their service is fantastic.

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Re: GEICO auto rates vs. USAA: too good to be true?

Post by NOLA » Tue Mar 07, 2017 11:17 pm

Have been with Geico for a few years and happy so far. Cheapest and has a claim (flooded car) and they gave me more than KBB said it was worth. It was an old car, but still. Price went up last year, but only because we bought new cars for the first time. Also have property insurance through them(Arrowhead) and so far so good. But no claims so tough to tell I guess.

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Nicolas
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by Nicolas » Tue Mar 07, 2017 11:54 pm

I just last week compared Liberty Mutual vs. GEICO vs. Safeco for auto, home, and umbrella, and found Safeco cheaper by far. I've been with LM for the past five years.

These are the prices, per year.

Home:
LM $1313
GEICO $1368
Safeco $578 (!)

Auto
LM $669 for 250/500/100
GEICO $459 for 250/500/100
Safeco $398 for 500/500/100 <--- (notice the higher limit)

Umbrella (1 MM)
LM $199
GEICO $203
Safeco $156 (with the higher auto liability)

All quotes are for the same underlying insurance limits except that Safeco was 500/500/100 for auto and also Safeco doesn't offer accident forgiveness. (I've never had an at-fault accident). We are a two-driver, two-vehicle, clean record, low-risk household. My last moving violation was in 1978. We carry collision/comprehensive on only one of our vehicles. We have uninsured/underinsured at our same liability limits for auto. We do not carry uninsured/underinsured in the umbrella.

As I said, I've been with Liberty Mutual for five years. I decided to switch to Safeco. When I called LM to cancel I was transferred to an account retention specialist who worked up a lower quote than what I had been paying as an inducement to stay with them: $830 for home and $562 for auto, they didn't quote for umbrella and I didn't ask as I'd already decided to jump ship.

I told her it was still higher than Safeco. They couldn't come down any further. So they went ahead and cancelled me. Funny thing though, LM owns Safeco, which she pointed out.

jwhitaker
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by jwhitaker » Wed Mar 08, 2017 7:19 am

Just so everyone knows, the is no such thing as teaser rates in insurance. Prices are regulated and the formula is publicly available. Different for each company which is why you get different prices. Many variables which is why no 2 people pay the same amount. Maybe some company has a 5 or 10% new biz discount but not 50.

Your agent is just saying that so you won't switch.

When you get a quote from Geico make sure to choose an affinity group, like alumni association. They give discounts for that.

Geico doesnt sell home or umbrella, but will give you a discount if you quote on their site. I've never seen another bundled price come close for me from other companies.

jadedfalcons
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by jadedfalcons » Wed Mar 08, 2017 7:32 am

Funny to see so many posters complaining about Liberty Mutual's rates. I just priced home insurance with them Monday. They were only a mere 76% higher than what I'm currently paying. :oops:

donaldfair71
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by donaldfair71 » Wed Mar 08, 2017 7:34 am

Switched to GEICO in 2007.

Got married in 2008, FIL had convinced my wife that Horace Mann was really cheap. Priced GEICO as a couple. The cost was less than half of Horace Mann. Made the switch.

I think our premiums have increased about 15% in the last 8.5 years. But that doesn't control for the fact that our car values have increased as well (probably by more than 15%). We have never made a claim, so I can't speak to how that would affect the cost.

dbr
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by dbr » Wed Mar 08, 2017 9:10 am

34 posts about rates and only one vague comment about claims experience. Wouldn't that be of concern? It's not that I have any data to argue the case one way or another, just that it seems odd not to consider the value of what one is getting along with the price.

wolf359
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by wolf359 » Wed Mar 08, 2017 9:43 am

USAA and Amica have the highest rated customer service in the business. Their claim services are top-notch. I can attest to that for USAA.

I have used GEICO in the past, and thought they were also good (but it's been about 20 years). Clark Howard recently complained on his radio show that GEICO will increase your rates if you have an accident that wasn't your fault, even if the other company covered all the costs. He considered this unfair.
(GEICO was not being singled out for this practice. Apparently Progressive does it as well.)

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Re: GEICO auto rates vs. USAA: too good to be true?

Post by neilpilot » Wed Mar 08, 2017 9:53 am

jwhitaker wrote:.

Geico doesnt sell home or umbrella, but will give you a discount if you quote on their site. I've never seen another bundled price come close for me from other companies.
Couple of years ago I dropped auto/home/umbrella at Nationwide and went with Geico for auto and umbrella. I'm reasonably sure they DO sell umbrella. They were not competitive for home, which they broker but do not sell.

Point is, I do believe that they write their own umbrella coverage. Their website quotes "GEICO Personal Umbrella Insurance is underwritten by Government Employees Insurance Company".

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midareff
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by midareff » Wed Mar 08, 2017 10:09 am

Elena wrote:
msa6 wrote:No kidding...I was just reading Buffett's recent letter where he tells those coming to his annual meeting to stop by the GEICO booth for an insurance check up. This prompted me to do a quick comparison of what I pay USAA, who has insured my cars for years, with GEICO's rates. With the 8% discount that I was able to qualify for, GEICO's rates are 57% cheaper, with slightly lower collision deductibles.

USAA has been great, but I own four cars (don't ask) and the differential with GEICO is some serious money...enough to make me question if it could possibly be too good to be true. USAA suggested that GEICO is known to jack rates after a six month teaser. Anyone experience this? Any other reasons to be suspect? Needless to say, I have less than the usual skepticism doing business with a wholly-owned Buffett company...though he is the largest shareholder in Wells Fargo, and we all know they haven't always treated their customers properly.

Thanks!
My old co., Liberty Ins., suggested the same rate hiking after 6 mo. possibility. I switched to Geico. My first 6 mo. were fine. Renewal came up to be some $10 higher. Whether that is rate hiking or not it is for the consumer to judge, but so far I have saved over half of what I used to pay to Liberty yearly. No claims, so cannot speak for that.

Same... Geico was half of what I was paying Liberty and 1/3 of what Liberty was quoting for a new car. When they tried to save the deal after being with Liberty for about 45 years they were still about 50% higher than Geico. I have had in total about 5% in raises with Geico and am now in my 5th year with them. I can only describe Liberty in words that are not allowed on this friendly board.

tidelandp
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by tidelandp » Wed Mar 08, 2017 10:19 am

I count my association w/State Farm in decades. When I last shopped my coverages, Geico was indeed substantially cheaper for auto. Package wise, however, it could not compete w/State Farm, where I benefit from big relationship and longevity discounts as well as claim free experience. Despite finding Geico very fragmented (each coverage is handled separately), I would have seriously considered switching had I been able to cobble together a more economical package.

260chrisb
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by 260chrisb » Wed Mar 08, 2017 10:43 am

Hmmmmmm....msa6 has four cars......I'm two up on that, insure a boat, and a house. I've been with State Farm my entire insuring life and have often wondered why I've never even compared rates? Seems like it's time and I could easily switch a couple cars as a litmus test for a year or two or as leverage if it gets to that.

spammagnet
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by spammagnet » Wed Mar 08, 2017 12:23 pm

tidelandp wrote:... Package wise, however, [GEICO] could not compete w/State Farm, where I benefit from big relationship and longevity discounts as well as claim free experience.
I found the opposite to be true when shopping recently but we don't benefit from longevity discounts and our circumstances probably differ. The conclusion should be that comparison shopping is good.

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Re: GEICO auto rates vs. USAA: too good to be true?

Post by Hockey10 » Wed Mar 08, 2017 12:57 pm

k4carbon wrote:I have been with USAA for decades and use them for home, auto, valuable personal property, and umbrella liability insurance. I think USAA has different internal insurance companies with different fee structures depending upon your membership type. I was active military and reserve officer. I have the USAA "savings account" with approx. $10K in it that USAA has paid into each year and I usually get a $150 -$250 distribution each year depending on their profitability previous year. These factors make USAA insurance fees more reasonable and their service is fantastic.
My situation with USAA sounds identical to "k4carbon" above. I have also had to file multiple claims over the years (homeowners, flood, and several auto claims). Each time their service was outstanding. I once had a contractor tell me that they preferred to work with USAA as USAA pays bills faster than any other company he ever dealt with.

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Re: GEICO auto rates vs. USAA: too good to be true?

Post by White Coat Investor » Wed Mar 08, 2017 12:58 pm

msa6 wrote:No kidding...I was just reading Buffett's recent letter where he tells those coming to his annual meeting to stop by the GEICO booth for an insurance check up. This prompted me to do a quick comparison of what I pay USAA, who has insured my cars for years, with GEICO's rates. With the 8% discount that I was able to qualify for, GEICO's rates are 57% cheaper, with slightly lower collision deductibles.

USAA has been great, but I own four cars (don't ask) and the differential with GEICO is some serious money...enough to make me question if it could possibly be too good to be true. USAA suggested that GEICO is known to jack rates after a six month teaser. Anyone experience this? Any other reasons to be suspect? Needless to say, I have less than the usual skepticism doing business with a wholly-owned Buffett company...though he is the largest shareholder in Wells Fargo, and we all know they haven't always treated their customers properly.

Thanks!
I really like USAA's service when I do have a claim. I would prefer to stay with USAA. However, I suspect I probably am overpaying (as I haven't comparison shopped in years.) What I wonder is if I call USAA and tell them the quote I got from GEICO, will they give me a discount to keep me?
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course

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Re: GEICO auto rates vs. USAA: too good to be true?

Post by White Coat Investor » Wed Mar 08, 2017 1:02 pm

Rob5TCP wrote:
It's gotten a little better with the discount for owning Berkshire Hathaway.
That's a no brainer. If you're going to use GEICO, buy a share.

How much is the discount?
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by MichaelRpdx » Wed Mar 08, 2017 1:05 pm

I switched to Geico several years ago and am a happy camper.
All of my claims have been handled well.

At last renewal I received an unexpected premium decrease.
Yay!
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Re: GEICO auto rates vs. USAA: too good to be true?

Post by spammagnet » Wed Mar 08, 2017 3:29 pm

White Coat Investor wrote:How much is the [Berkshire-Hathaway share ownership] discount?
When I inquired I was told that other discounts exceeded it and double discounts were not allowed. Hopefully, I was not misled.

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Re: GEICO auto rates vs. USAA: too good to be true?

Post by Wabbit » Wed Mar 08, 2017 3:56 pm

California maintains a list of the justified consumer complaint ratio for insurance companies, perhaps other states do also. It seems useful here, at least I assume they are looking at a considerable amount of data from a reasonably large number of people. At least on this list, Geico is behind USAA but probably comparable to it. The ratio really starts ramping up toward the end of the list:

http://www.insurance.ca.gov/01-consumer ... posite.cfm

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Re: GEICO auto rates vs. USAA: too good to be true?

Post by kaudrey » Wed Mar 08, 2017 4:07 pm

mckaydw wrote:I've been wondering about my USAA insurance. My cars are getting nothing but older, but somehow my premiums always go up. I got a quote from Geico and it was lower. Does anyone here have experience with GEICO, especially if they had to make a claim?

Do all insurance companies slowly raise your rates, making it advantageous to switch companies every few years?

I have been a GEICO policy holder for over 20 years. I have been in several accidents over that time, including 1 totaled car, and their repair service has always been very good and my rates have always been comparable or lower than what I could get elsewhere. I check every few years. I'm sure my rates went up after the totaled car, but I don't recall it being a crazy increase. That was many years ago now.

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Re: GEICO auto rates vs. USAA: too good to be true?

Post by kaudrey » Wed Mar 08, 2017 4:11 pm

TylerS7 wrote:I have my auto, homeowners, and umbrella policy with usaa. Hypothetically if I were to switch to geico, what would I use for a homeowners and umbrella? I thought usaa required that you have all of your properties and cars insured with them in order to have an umbrella. Maybe that's not the case for other companies.

Traveler's for home insurance; GEICO for the car.

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Re: GEICO auto rates vs. USAA: too good to be true?

Post by knpstr » Wed Mar 08, 2017 4:19 pm

misterno wrote: I have 2009 Toyota Yaris and a 2016 Toyota RAV4 XLE

Paying only liability $330 every 6 months
wait a minute? is the $330 every 6 months for the two cars combined? Or is it $330/per car per 6 months... $660 in total?
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