GEICO rate increase: 49% annualized?!

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discman017
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GEICO rate increase: 49% annualized?!

Post by discman017 »

We switched to GEICO in November, and now for our May renewal, we're seeing a 22.2% rate increase for the six months, or 49% annualized! I called, and they gave me the standard line: It's nothing we've done, we have a perfect driving record, but premiums are going up as the cost of claims rises. But 49%? Really?!

This is for a two-vehicle policy, liability only, in Colorado.

Anyone else seeing the same thing for upcoming GEICO renewals?

Or did we fall prey to some practice of offering a teaser rate for the first six months to get us signed up? I've never heard that GEICO does this, but it's hard to fathom a 49% annualized increase.
Jags4186
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Re: GEICO rate increase: 49% annualized?!

Post by Jags4186 »

I’ve had GEICO for 6 years and never had a problem. My rates just went up 25% this time. I am in the process of switching to Progressive.
Amphian
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Re: GEICO rate increase: 49% annualized?!

Post by Amphian »

Colorado is one of the states where GEICO is no longer competitive. Mine went up 65% over the last year (six month policies, so two significant upgrades). I have been a customer for well over a decade - one vehicle, about 5K miles per year (work from home), no accidents, no tickets, no claims. The first time they said it was a one time increase due to rising costs in Colorado. The second time I switched. I'm paying almost the same amount for a year of coverage elsewhere (Amica) as the six month premium at GEICO.
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Pajamas
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Re: GEICO rate increase: 49% annualized?!

Post by Pajamas »

discman017 wrote: Fri Apr 06, 2018 11:17 am We switched to GEICO in November, and now for our May renewal, we're seeing a 22.2% rate increase for the six months, or 49% annualized! I called, and they gave me the standard line: It's nothing we've done, we have a perfect driving record, but premiums are going up as the cost of claims rises. But 49%? Really?!
I don't see how a 22.2% increase for a six month period is equivalent to a 49% increase annualized. It's a one-time increase of 22.2%. There may or may not be another increase (or decrease) for the following six month period.
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triceratop
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Re: GEICO rate increase: 49% annualized?!

Post by triceratop »

Careful, the last time I tried to annualize a GEICO premium increase I was pilloried for it.

Looks like it's already beginning; brace yourself. Good luck! :)
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."
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discman017
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Re: GEICO rate increase: 49% annualized?!

Post by discman017 »

triceratop wrote: Fri Apr 06, 2018 11:41 am Careful, the last time I tried to annualize a GEICO premium increase I was pilloried for it.

Looks like it's already beginning; brace yourself. Good luck! :)
:) Sure, the rate increase could be higher or lower for the subsequent six months.

But 22% for six months is nuts. That's the point. I just wanted to see what experience other people have had to see if I should look at switching (again, just five months after switching to GEICO).
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Pajamas
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Re: GEICO rate increase: 49% annualized?!

Post by Pajamas »

discman017 wrote: Fri Apr 06, 2018 11:44 am
triceratop wrote: Fri Apr 06, 2018 11:41 am Careful, the last time I tried to annualize a GEICO premium increase I was pilloried for it.

Looks like it's already beginning; brace yourself. Good luck! :)
:) Sure, the rate increase could be higher or lower for the subsequent six months.

But 22% for six months is nuts. That's the point. I just wanted to see what experience other people have had to see if I should look at switching (again, just five months after switching to GEICO).
Why are you trying to sensationalize it with math that doesn't have a basis in reality?
orlandoman
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Re: GEICO rate increase: 49% annualized?!

Post by orlandoman »

A very few companies, like The Hartford (AARP vendor) offer annual policies, with one possible rate increase per year, not two. Something to consider.
"Don't Believe Everything You Think"
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discman017
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Re: GEICO rate increase: 49% annualized?!

Post by discman017 »

Amphian wrote: Fri Apr 06, 2018 11:34 am Colorado is one of the states where GEICO is no longer competitive. Mine went up 65% over the last year (six month policies, so two significant upgrades). I have been a customer for well over a decade - one vehicle, about 5K miles per year (work from home), no accidents, no tickets, no claims. The first time they said it was a one time increase due to rising costs in Colorado. The second time I switched. I'm paying almost the same amount for a year of coverage elsewhere (Amica) as the six month premium at GEICO.
Thanks for the suggestion. I just got a quote from Amica, and for my situation Amica is still 11% higher. But it was worth a try.
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Re: GEICO rate increase: 49% annualized?!

Post by Amphian »

discman017 wrote: Fri Apr 06, 2018 12:10 pm Thanks for the suggestion. I just got a quote from Amica, and for my situation Amica is still 11% higher. But it was worth a try.
Bummer. I would try a couple other places and see if you can get something better.
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Alexa9
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Re: GEICO rate increase: 49% annualized?!

Post by Alexa9 »

All you can do is shop around. I've found Geico is way cheaper than the others even after they raised their rates on me too.
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Re: GEICO rate increase: 49% annualized?!

Post by surfstar »

Shop around. See if you qualify for any of the numerous Geico discounts.
That's about all you can do.
H-Town
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Re: GEICO rate increase: 49% annualized?!

Post by H-Town »

discman017 wrote: Fri Apr 06, 2018 11:17 am We switched to GEICO in November, and now for our May renewal, we're seeing a 22.2% rate increase for the six months, or 49% annualized! I called, and they gave me the standard line: It's nothing we've done, we have a perfect driving record, but premiums are going up as the cost of claims rises. But 49%? Really?!

This is for a two-vehicle policy, liability only, in Colorado.

Anyone else seeing the same thing for upcoming GEICO renewals?

Or did we fall prey to some practice of offering a teaser rate for the first six months to get us signed up? I've never heard that GEICO does this, but it's hard to fathom a 49% annualized increase.
Which state you live in? I saw about $10 bump when I renew for the 6 month policy. I swore it off and moved on.
sport
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Re: GEICO rate increase: 49% annualized?!

Post by sport »

My State Farm auto insurance rate decreased for this 6 months.
viewtopic.php?f=2&t=246039
denovo
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Re: GEICO rate increase: 49% annualized?!

Post by denovo »

discman017 wrote: Fri Apr 06, 2018 11:17 am We switched to GEICO in November, and now for our May renewal, we're seeing a 22.2% rate increase for the six months, or 49% annualized! I called, and they gave me the standard line: It's nothing we've done, we have a perfect driving record, but premiums are going up as the cost of claims rises. But 49%? Really?!

This is for a two-vehicle policy, liability only, in Colorado.

Anyone else seeing the same thing for upcoming GEICO renewals?

Or did we fall prey to some practice of offering a teaser rate for the first six months to get us signed up? I've never heard that GEICO does this, but it's hard to fathom a 49% annualized increase.
Shop around and let us know if GEICO still comes out cheapest. I also think it's wrong to annualize the rate increase.
"Don't trust everything you read on the Internet"- Abraham Lincoln
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Re: GEICO rate increase: 49% annualized?!

Post by denovo »

Jags4186 wrote: Fri Apr 06, 2018 11:22 am I’ve had GEICO for 6 years and never had a problem. My rates just went up 25% this time. I am in the process of switching to Progressive.
I can assume Progressive was cheaper than GEICO? How much cheaper.
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denovo
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Re: GEICO rate increase: 49% annualized?!

Post by denovo »

triceratop wrote: Fri Apr 06, 2018 11:41 am Careful, the last time I tried to annualize a GEICO premium increase I was pilloried for it.

Looks like it's already beginning; brace yourself. Good luck! :)
I noticed that post was from March 2017 so you've had (2) renewals since then. Were the next renewals of similar percentage increases?
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Re: GEICO rate increase: 49% annualized?!

Post by triceratop »

denovo wrote: Fri Apr 06, 2018 1:07 pm
triceratop wrote: Fri Apr 06, 2018 11:41 am Careful, the last time I tried to annualize a GEICO premium increase I was pilloried for it.

Looks like it's already beginning; brace yourself. Good luck! :)
I noticed that post was from March 2017 so you've had (2) renewals since then. Were the next renewals of similar percentage increases?
Q3 2017 was no increase (0% annualized -- hey at least I'm fair) and Q2 2018 was 10.6% higher than Q3 2017. At the risk of being attacked for annualizing, I'll let you do the math to annualize that.
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."
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Re: GEICO rate increase: 49% annualized?!

Post by Info_Hound »

orlandoman wrote: Fri Apr 06, 2018 12:10 pm A very few companies, like The Hartford (AARP vendor) offer annual policies, with one possible rate increase per year, not two. Something to consider.
I was with GEICO for decades and moved to Colorado. Rates went up, way up every 6 months. Same excuse, nothing you have done, blah, blah, blah. I finally decided they were trying to slowly boil the frog (me) without me noticing. Same as OP - 5K a yr driving for one car and 10K a year on the other.

My best quote came from AAA. One year AAA policies are available (went that route). AAA one year policy was half the cost of a GEICO policy (2 6 month renewals) and I got more insurance coverage under the AAA policy. YMMV.

Forgot to add - waiting to see what the 2017 Colorado mega hailstorm did to rates across insurance companies here in CO. My area was spared but doubt that will come into play with insurance.
Last edited by Info_Hound on Fri Apr 06, 2018 1:39 pm, edited 2 times in total.
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Re: GEICO rate increase: 49% annualized?!

Post by Jags4186 »

denovo wrote: Fri Apr 06, 2018 1:06 pm
Jags4186 wrote: Fri Apr 06, 2018 11:22 am I’ve had GEICO for 6 years and never had a problem. My rates just went up 25% this time. I am in the process of switching to Progressive.
I can assume Progressive was cheaper than GEICO? How much cheaper.
GEICO went from $1225 to $1574. I got Progressive for $1192. 2 cars/2 drivers for 6 months. I will be losing mechanical breakdown insurance in the switch, but that only was $30/6 months on 1 of the vehicles.
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discman017
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Re: GEICO rate increase: 49% annualized?!

Post by discman017 »

Thanks for all the replies. I got a couple of other quotes, from Amica and Progressive. Progressive was about the same, and Amica was 11% higher than GEICO. So I guess I should be happy that I got a really good deal for six months, and now (even after the 22% increase) I'm paying the lowest rate that seems to be available. I do wonder about whether the first six months is a teaser rate (or a "boil the frog" pricing model, like someone else suggested), but for now I'll stick with GEICO and see what happens at the next renewal.
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Re: GEICO rate increase: 49% annualized?!

Post by Jags4186 »

I don’t remember what GEICO does, but in my Progressive quote it labels me getting $895 of “discounts” and one of the discounts is “new online shopper” or something to that effect. I expect my rate will jump several hundred in 6 months and I’ll just switch again.
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Re: GEICO rate increase: 49% annualized?!

Post by sport »

sport wrote: Fri Apr 06, 2018 1:01 pm My State Farm auto insurance rate decreased for this 6 months.
viewtopic.php?f=2&t=246039
Apparently people don't feel this is a viable option. Or, perhaps they don't believe me. :annoyed
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Re: GEICO rate increase: 49% annualized?!

Post by jpa »

I've been with Geico for 5 years. Usually have a couple dollar increase each year. This year my rate rose ~15%, even though I had accidents coming OFF my record. When I called, they said pretty much all states were experiencing this.
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Re: GEICO rate increase: 49% annualized?!

Post by boglegirl »

triceratop wrote: Fri Apr 06, 2018 11:41 am Careful, the last time I tried to annualize a GEICO premium increase I was pilloried for it.

Looks like it's already beginning; brace yourself. Good luck! :)
You weren't pilloried, you were corrected. The only way it makes sense to annualize a 6-month bill is if you know what your next bill is going to be. You even admitted you did it because the annualized rate sounded more dramatic:
triceratop wrote: Wed Mar 29, 2017 12:05 pm ...
lol, good point. My APY calculation was not meant entirely seriously but added for shock value. ...
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Re: GEICO rate increase: 49% annualized?!

Post by boglegirl »

sport wrote: Fri Apr 06, 2018 2:03 pm
sport wrote: Fri Apr 06, 2018 1:01 pm My State Farm auto insurance rate decreased for this 6 months.
viewtopic.php?f=2&t=246039
Apparently people don't feel this is a viable option. Or, perhaps they don't believe me. :annoyed
I believe you! Our rate went down about 1% this year. I think it's just dependent on where you live, claims history, age, etc., as others suggested in your thread. So they might not have the best price for the OP.
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Re: GEICO rate increase: 49% annualized?!0p

Post by petulant »

The thing to always remember on insurance is that these people are not your friends and they do not operate on laws of moralism or fairness. Every six months is a new contract, and you should be prepared to bid out to new providers at any time.
boglegirl wrote:
triceratop wrote: Careful, the last time I tried to annualize a GEICO premium increase I was pilloried for it.

Looks like it's already beginning; brace yourself. Good luck! :)
You weren't pilloried, you were corrected. The only way it makes sense to annualize a 6-month bill is if you know what your next bill is going to be. You even admitted you did it because the annualized rate sounded more dramatic:
triceratop wrote: ...
lol, good point. My APY calculation was not meant entirely seriously but added for shock value. ...
I remember reading the thread at the time. Boglegirl is 100% correct.
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Re: GEICO rate increase: 49% annualized?!

Post by triceratop »

Glad to see it continue in the current thread. :beer

Anyway, there was nothing wrong with annualizing because the increase in the previous 6 months was 0%. I'm sure someone will be along shortly to "correct" me on this, though. :D

As I said in post that you heavily edited:
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?
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."
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Re: GEICO rate increase: 49% annualized?!

Post by Freefun »

Geico had many claims due to hurricane Harvey.
Remember when you wanted what you currently have?
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Re: GEICO rate increase: 49% annualized?!

Post by furwut »

Freefun wrote: Fri Apr 06, 2018 6:29 pm Geico had many claims due to hurricane Harvey.
In Colorado?
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Re: GEICO rate increase: 49% annualized?!

Post by sf99 »

I was with Geico for the last 4 years. But recently Geico increased my rates by almost 100% (agree that I had a small low cost incident last year). But I got quotes from others and switched to Costco AmeriPrise which was significantly lower. This is in San Jose CA.
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Re: GEICO rate increase: 49% annualized?!

Post by SimonJester »

sport wrote: Fri Apr 06, 2018 2:03 pm
sport wrote: Fri Apr 06, 2018 1:01 pm My State Farm auto insurance rate decreased for this 6 months.
viewtopic.php?f=2&t=246039
Apparently people don't feel this is a viable option. Or, perhaps they don't believe me. :annoyed
Everything is situation and risk rating dependent. For me they were the 2nd highest out of the 12 companies I just quoted.

The difference between the lowest insurance company and the highest was $4,000 per year for identical coverage.
"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." - Benjamin Franklin
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Re: GEICO rate increase: 49% annualized?!

Post by jhfenton »

sport wrote: Fri Apr 06, 2018 2:03 pm
sport wrote: Fri Apr 06, 2018 1:01 pm My State Farm auto insurance rate decreased for this 6 months.
viewtopic.php?f=2&t=246039
Apparently people don't feel this is a viable option. Or, perhaps they don't believe me. :annoyed
It must vary by state. We have State Farm too, and our rates have been flat. When I shopped around a couple of years ago, GEICO and Progressive were not competitive. We've had State Farm for more than 30 years, but I would switch if the savings were compelling.
SimonJester wrote: Sat Apr 07, 2018 12:02 am The difference between the lowest insurance company and the highest was $4,000 per year for identical coverage.
$4,000? :shock: I don't even want to know what you're insuring where the delta could be $4,000.
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Re: GEICO rate increase: 49% annualized?!

Post by SimonJester »

jhfenton wrote: Sat Apr 07, 2018 6:59 am $4,000? :shock: I don't even want to know what you're insuring where the delta could be $4,000.
Right 3 autos and home with a teen driver. Auto insurance alone is the equivalent of a car payment. Lowest quote for 12months was $3,600 highest was over $7,600. All pretty standard insurance with newest vehicle being 12 years old. Teenage boys just carry insane liability risks, it basically doubled my monthly insurance rate...

I'm finding the insurance companies that advertise on TV are the highest, ie the lizard was the highest for auto just about double the lowest quote.

My point is you have to shop or have an independent agent shop the various companies.
"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." - Benjamin Franklin
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Re: GEICO rate increase: 49% annualized?!

Post by AMG79 »

I'm also in Colorado. I spent a long time price shopping a couple of years ago and settled on Esurance. We were able to get better coverage for a lower cost than with State Farm or Geico. We've had to deal with them for a catastrophic hail storm claim (part of the reason rates could be rising in CO) and also a not-at-fault accident in which our vehicle was totaled. They were excellent in all situations. Worth a quote I think if you are shopping around.
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Re: GEICO rate increase: 49% annualized?!

Post by dziuniek »

discman017 wrote: Fri Apr 06, 2018 11:17 am We switched to GEICO in November, and now for our May renewal, we're seeing a 22.2% rate increase for the six months, or 49% annualized! I called, and they gave me the standard line: It's nothing we've done, we have a perfect driving record, but premiums are going up as the cost of claims rises. But 49%? Really?!

This is for a two-vehicle policy, liability only, in Colorado.

Anyone else seeing the same thing for upcoming GEICO renewals?

Or did we fall prey to some practice of offering a teaser rate for the first six months to get us signed up? I've never heard that GEICO does this, but it's hard to fathom a 49% annualized increase.
That's been pretty much the case for any insurance company I've used in the past. I've probably used 10 of them in the past.

It's best to keep them in rotation.

I use a broker every year and was able to keep my insurance cost basically the same. (close enough)

Good luck.
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Re: GEICO rate increase: 49% annualized?!

Post by sport »

SimonJester wrote: Sat Apr 07, 2018 8:24 am Right 3 autos and home with a teen driver. Auto insurance alone is the equivalent of a car payment. Lowest quote for 12months was $3,600 highest was over $7,600. All pretty standard insurance with newest vehicle being 12 years old. Teenage boys just carry insane liability risks, it basically doubled my monthly insurance rate...
You should only pay the higher rate for a teen driver on one car, not all three. After all, he/she can only drive one car at a time.
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Re: GEICO rate increase: 49% annualized?!

Post by Traveler »

I have had GEICO for several years and the last few renewals (six month), the rates have increased. However, when shopping other companies, they are still the best price. I may try a broker to access companies that don't sell direct and see if I can get something better, but I may just stay with GEICO.
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Re: GEICO rate increase: 49% annualized?!

Post by kd2008 »

We are bogleheads. We like to go to data source. Not go by data anecdote over which insurance provider is cheaper.

OP, please check your state insurance commission webpage on which insurance company is cheapest for standard insured driver.

For example, here in Oklahoma, we have this page:
https://www.ok.gov/oid/Consumers/Home_a ... ison_Chart:

Your state government data helps you find cheapest auto and home insurance

https://thefinancebuff.com/save-money-o ... rveys.html

Colorado state has this website:

http://www.dora.state.co.us/pls/real/In ... O&p_label=

Hope this helps!
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Re: GEICO rate increase: 49% annualized?!

Post by mikebee »

Excessive advertising cant help. Over frequent Geico ads in every conceivable media outlet. Yesterday a plane flew low over my house making the heck of a noise - yes, towing a Geico banner. Shopping around takes forever. No easy online instant quotes for car insurance just get sidetracked to an agent who spews endless incomprehensible jargon.
Health and car insurance in this country is a disgrace.
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discman017
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Re: GEICO rate increase: 49% annualized?!

Post by discman017 »

kd2008 wrote: Sat Apr 07, 2018 9:52 am Colorado state has this website:

http://www.dora.state.co.us/pls/real/In ... O&p_label=
Thanks so much! I had no idea that the state division of insurance did surveys like this. Very helpful.

Observations:

Whoa, there are a lot of insurers in the report. 77 of them!

GEICO has the fifth-lowest rate in the survey. Not bad.

The survey shows Progressive 29% higher than GEICO and Amica 64% higher. When I quoted those yesterday, Progressive was nearly identical to GEICO and Amica was only 11% higher, albeit for somewhat different coverage. So I'm a little suspicious of the quality of the state's data.

Still, I checked out the four insurers that the state shows with lower rates than GEICO. Three of them only sell through brokers. The fourth offers online quotes but requires a social security number for a quote.

Questions:

1. How do people effectively shop around for insurance when some of the companies that supposedly have the best rates only sell through brokers? Do you actually find a local broker for each insurer and call them up to get a quote? Sounds like a hassle, particularly if I'm going to have to do it every six months.

2. Do people really disclose their SSN just to get a quote on insurance? I might be OK with giving my SSN to my insurer after I've chosen one. But I'm not about to give it to a dozen insurers when I'm just shopping around.

And one more observation: It sounds like at least some insurers as a standard practice offer an intro rate to get you in and then raise your rate later. So insurance pricing is starting to sound like cable/internet. Sign up with one company for a year to get their special new-customer promo rate, then when they jack up your rate, switch to another company for a year. Then switch back, and repeat. I suppose I should have realized that insurance was the same game, but I never thought about it that way.

Thanks again for all the helpful replies!
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Re: GEICO rate increase: 49% annualized?!

Post by midareff »

I have had Geico for the last 5 years. Just switched to a much more expensive vehicle and rates went up significantly so I quoted Progressive and Hartford as a comparison. Both were more than $600 annually higher.
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Re: GEICO rate increase: 49% annualized?!

Post by SimonJester »

sport wrote: Sat Apr 07, 2018 9:11 am
SimonJester wrote: Sat Apr 07, 2018 8:24 am Right 3 autos and home with a teen driver. Auto insurance alone is the equivalent of a car payment. Lowest quote for 12months was $3,600 highest was over $7,600. All pretty standard insurance with newest vehicle being 12 years old. Teenage boys just carry insane liability risks, it basically doubled my monthly insurance rate...
You should only pay the higher rate for a teen driver on one car, not all three. After all, he/she can only drive one car at a time.
Correct, and this is seen on all the policies I have been quoting.
Basically each insurer puts the teen on which ever vehicle their rating / risk profile produces the lowest cost. One insurer will put the teen on one vehicle another on a different vehicle. They all tell me that results in the lowest premium. In the end the yearly dollar amount is what it is...

I have also been quote home and auto together as I believe that results in the lowest over all yearly cost for the two products. One company may have lower auto but higher home etc... However everyone was a lower rate when combined then with just the individual policies...
"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." - Benjamin Franklin
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Re: GEICO rate increase: 49% annualized?!

Post by neilpilot »

SimonJester wrote: Sat Apr 07, 2018 2:00 pm
I have also been quote home and auto together as I believe that results in the lowest over all yearly cost for the two products. One company may have lower auto but higher home etc... However everyone was a lower rate when combined then with just the individual policies...
When I shopped (all my coverage had been with Nationwide), ended up writing auto+umbrella with GEICO, homeowner's with a different company. That was hundreds of dollars less than placing all 3 policies with one company, even with multi-policy discount.
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Re: GEICO rate increase: 49% annualized?!

Post by jbrey »

I had a similar experience and decided to end my relationship with Geico. I was paying $1087 for a 6 month term on a 2015 Infiniti QX50 AWD and then replaced it with a 2018 Q50 AWD sedan. The policy went from $1087 to $1567 in two weeks time. I didn’t realize the change at first between the conversation with the rep for the new car’s coverage and the first confirmation email but 2 weeks later I received a note saying my rates had gone up. It said a combination of things occurred to cause the change so I called to clarify. The rep basically read the official responses back to me suggesting that i was still receiving $400 in discounts but the rate increase was approved by NY. I pressed on how much Geico requested NY for their rate increase but the rep couldn’t say other than my increase was most likely less than others with spottier records. Absurd. Somehow it’s ok to increase rates by more than 40% and then blame it on their inability to pass a discount for a college degree or safer car. More absurd was the explanation that safe cars are more expensive to fix so that also added to the increase even though my new car is nearly identical to the previous. After going in circles with the rep about uninsured drivers, increased medical costs and car repairs I decided to shop around. I ultimately signed up with Progressive for the same coverage for $920! Now we’re talking! Long story short - shop around for the best deal.
tj
Posts: 3727
Joined: Thu Dec 24, 2009 12:10 am

Re: GEICO rate increase: 49% annualized?!

Post by tj »

In AZ, I am getting the best rates from USAA, AAA, Progressive and Mercury. Geico never seems to be competitive.
TheHouse7
Posts: 514
Joined: Fri Jan 13, 2017 2:40 am
Location: Washington State

Re: GEICO rate increase: 49% annualized?!

Post by TheHouse7 »

mikebee wrote: Sat Apr 07, 2018 10:28 am Excessive advertising cant help. Over frequent Geico ads in every conceivable media outlet. Yesterday a plane flew low over my house making the heck of a noise - yes, towing a Geico banner. Shopping around takes forever. No easy online instant quotes for car insurance just get sidetracked to an agent who spews endless incomprehensible jargon.
Health and car insurance in this country is a disgrace.
I have realized this is my biggest expense (advertising), not taxes, health care, financing, :oops:
"PSX will always go up 20%, why invest in anything else?!" -Father-in-law early retired.
sterlinga
Posts: 2
Joined: Sun Jun 23, 2019 5:30 pm

Re: GEICO rate increase: 49% annualized?!

Post by sterlinga »

Been with GEICO 15 to 20 years, can't even recall not having them. Generally, good service and helpful in keeping my rates low,\; lowest ever last year, both of us retired, very low mileage and I diligently take my Defensive Driver course as needed.
Just received my July-January renewal and it has increased by 22%! I usually project an ever-so-slight reduction due to depreciation of the vehicles and was totally blindsided by this news.
WORSE, after a 20 minute line by line review of my last three policies I found the one & only difference, I (and my Def Driver discount) have been switched from "Veh 2" the one I drive to "Veh 1", the one my wife drives.
STILL WORSE: Assuming I had found the glitch (feeling very proud of myself) I called to explain to the GEICO agent what I'd discovered and assumed all would be well in a minute or two. But, no. She explained in a "prepared speech manner" that GEICO has "moved away from a manual assignment of drivers to their vehicle in lieu of an Intentional Automatic SYSTEM-assignment of "highest risk driver to highest risk vehicle." (Unsure of what determines a 'higher risk vehicle.') However, my agent was very clear that this CHANGE OF ASSIGNMENTS was not a manual oversight or mistake, it was system generated and CAN NOT be reassigned/changed manually and, it was indeed the basis for my 22 % increase.
When I suggested my wife and I each simply insure our own vehicles she instantly, without a moment's reflection told me that would be more expensive. I asked how she could know and she told me she had done this comparison lots of
times. Knowing it would be futile, I asked her to give me the two quotes, both of which were even higher then the renewal I was facing... she was right.

Next comments will be to the Insurance Commissioner and then ClassAction.org
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Ketawa
Posts: 2309
Joined: Mon Aug 22, 2011 1:11 am
Location: DC

Re: GEICO rate increase: 49% annualized?!

Post by Ketawa »

sterlinga wrote: Sun Jun 23, 2019 5:35 pm Next comments will be to the Insurance Commissioner and then ClassAction.org
Seriously, a class action? How is that an appropriate response?

Anyway, I received my first renewal with GEICO. My premium is exactly the same. I'm very pleased. I'm single and live in DC.
sterlinga
Posts: 2
Joined: Sun Jun 23, 2019 5:30 pm

Re: GEICO rate increase: 49% annualized?!

Post by sterlinga »

It seems to me that a unilateral choice by an insurer to ignore the actual driver/vehicle relationship in lieu of a system algorithm to assess and assign the highest risk with the highest risk with the only obvious result being to enhance(maximize) premium income is actionable.
I could be wrong, but I don't think so.
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