Geico price too low??

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bostondan
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Geico price too low??

Post by bostondan » Sat Apr 13, 2019 7:32 am

I have had Traveler’s insurance for auto, home, and umbrella for several years. This year my premiums are going up by about $1000 to $2200 for the two-car auto policy. We don’t have any prior accidents.

I had previously priced out the competitors last year, but nobody was cheaper, including Geico. With the price increase this year I decided to look again.

Unbelievably, Geico is quoting me a 12 month policy of under $700 for what seems to be the same coverage for auto. They also have discounts for bundling renter’s and umbrella insurances (but I think they are just resellers of those).

The next lowest price available to me seems to be Plymouth Rock Insurance, around $1300.

How is such a dramatic price difference possible, particularly given that it wasn’t cheaper last year? Is this a bait and switch?

Should I switch to Geico? Plymouth Rock? Stick with Travelers?

Thanks!
“There may be times when we are powerless to prevent injustice, but there must never be a time when we fail to protest.” - Elie Wiesel

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Rob5TCP
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Re: Geico price too low??

Post by Rob5TCP » Sat Apr 13, 2019 7:39 am

When I first checked for auto insurance GEICO was literally less than 1/2 of 4 other places I tried (Progressive was not around then).
As for renters and umbrella, GEICO writes the umbrella policy, my renters is with Traveler's (but listed on the GEICO site).

I've not had dramatic increases (though 25% the last 3 years on my umbrella policy) -- I can not say whether they will up your insurance
rates in a year. That has not been my experience.

Doohop65
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Re: Geico price too low??

Post by Doohop65 » Sat Apr 13, 2019 7:45 am

Make the change to geico and step on the insurance hamster wheel. In order to keep your prices reasonable you will need to change every couple of years. Their algorithms for pricing seem to be based on cheap upfront pricing followed by upward creep. If drives me crazy that nobody will price yearly but I believe that is part of the game. 6 month terms makes it easier to have “smaller” and quicker increases.

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HueyLD
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Re: Geico price too low??

Post by HueyLD » Sat Apr 13, 2019 8:52 am

The OP may want to contact an independent agent in his area. If your insurance score is high, you can get good coverage at reasonable prices with a highly rated firm.

Using an independent agent can save you a lot of time.

P.s. There are a few companies to my knowledge that price their premiums annually.

Broken Man 1999
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Re: Geico price too low??

Post by Broken Man 1999 » Sat Apr 13, 2019 9:08 am

HueyLD wrote:
Sat Apr 13, 2019 8:52 am
The OP may want to contact an independent agent in his area. If your insurance score is high, you can get good coverage at reasonable prices with a highly rated firm.

Using an independent agent can save you a lot of time.
Yes. Absolutely the best way to shop insurance.

I use to go thru the drill of calling around, sending emails, etc.

Got tired of it, and hooked up with a great insurance agency. So my contact Mandy shops my policies around renewal time, and sometimes I stay with a company, sometimes I change. No fuss, no muss.

Even though I have received great service, every couple of years I send my info to a couple of other agencies for a sanity check. Last year I could have saved a tiny bit with another agency, but there will be some variability year to year depending on the particular policy. Wasn't worth changing.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven than I shall not go. " -Mark Twain

orlandoman
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Re: Geico price too low??

Post by orlandoman » Sat Apr 13, 2019 9:12 am

Geico auto rates normally include a 1 time new customers discount & then they go up the 2nd year ... when asked how much they go up the 2nd year they say they don't know. Ask if this is true for your quote.
"Don't Believe Everything You Think"

Jags4186
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Re: Geico price too low??

Post by Jags4186 » Sat Apr 13, 2019 9:20 am

It is a hamster wheel. Definitely go to an agent. In fact go to multiple agents as most of them only quote for certain companies. Depending on your state you could have 100s of insurance providers that you’ve never heard of that only sell through agents.

I used to have Geico and Progressive prior to that. Every year I would call around to All State, Amica, Travelers, Geico, Progressive, Liberty, i.e. all the ones who advertise heavily. Geico was the cheapest. When we bought a house and I had home owners to bundle I contacted a broker and she got me insurance through NJ Skylands; homeowners and car insurance with better auto coverage for less than I was paying Geico for car insurance. It is also an annual quote as opposed to 6 months with Geico.

Now what are the downsides? The website hasn’t been updated since what looks to be 1997 and they don’t have live reps 24/7. I have no idea how claims friendly they are. But it is inexpensive coverage—at least compared to what I used to have. I’ll be reaching out to agents again in a month or two.

pdavi21
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Re: Geico price too low??

Post by pdavi21 » Sat Apr 13, 2019 9:25 am

Geico has always been the cheapest for me.
Last edited by pdavi21 on Sat Apr 13, 2019 12:09 pm, edited 1 time in total.
"We spend a great deal of time studying history, which, let's face it, is mostly the history of stupidity." -Stephen Hawking

bob60014
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Re: Geico price too low??

Post by bob60014 » Sat Apr 13, 2019 10:37 am

Geico here also, only a couple dollar rate increase in 7 years. Currently at $450/yr full coverage, Honda Accord in the Chicago area. I can't complain. Ymmv!

frankandbeans
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Re: Geico price too low??

Post by frankandbeans » Sat Apr 13, 2019 10:47 am

I just switched auto to Geico after seven years of Travelers creep. It was 50 percent less. Both homeowners policies staying with Travelers, which remains the cheapest. Was reluctant to break up the policies to two insurers, but for $500/year it was worth it.

mariezzz
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Re: Geico price too low??

Post by mariezzz » Sat Apr 13, 2019 12:44 pm

I have Geico. $425 annually plus $33 roadside assistance. Comparing a total cost for insurance doesn't tell you much - you have to look at the details.
I don't carry comprehensive or collision, so I doubt the year/make of the car is relevant but I have an old, sedate sedan. I get a discount for low mileage; states laws vary here. No moving violations or accidents. I have 100/300 coverage on everything I have to carry, and have opted out of the all the medical coverage that I'm able to. I think I get a 3% discount for bundling homeowners & auto.
I've called around and compared but haven't found anything priced enough lower to motivate me to move - if you call around, set up a dummy email account so you can ignore all the follow-up emails you get.

Paul78
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Re: Geico price too low??

Post by Paul78 » Sat Apr 13, 2019 1:00 pm

Yep a similar thing happened to me.

Was previously with Geico but got in an accident. Geico quadrupled my rate, most of the big companies tripled my rate, and then comes Progressive which only doubled my rate.

And still 2 years after the accident Progressive is by far the cheapest. Will be interesting to see what the rates are 3 years after the accident (ie when the accident will fall off my record).

On a side note I find it awkward that getting in an accident that has a "minor" medical claim puts you in the same category as an accident where the insurance has to pay out a 1 million dollar medical claim. At least this is what the Geico rep told me. In my case it almost would have been cheaper for me just to offer the other driver cash for his minor medical claim than the 3 years of increased insurance rates. Obviously that would have been a dumb move as it would not have been legally binding AND per insurance company they have a 10 year window to file the medical claim.

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cowdogman
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Re: Geico price too low??

Post by cowdogman » Sat Apr 13, 2019 1:23 pm

We've had the same State Farm agent for 30+ years--Home, Earthquake, 2 Cars, Umbrella and Small Business Cover--have had three claims--a burglary and two fender benders, all over 20 years ago.

Last year I decided to shop around and contacted a local independent agent and also a Travelers agent. Neither could come close to the State Farm price or cover--and they both had to piece together cover from different insurers, whereas State Farm is the primary insurer on all our coverages. And the independent agent told me that if I switch and then make a claim, I will likely get dropped at the next renewal. So I met with our State Farm agent (first time in 9 years) and made a few tweaks to our cover (increasing coverage) and we're still with State Farm.

I'm not sure what lessons to draw from the above. I do take a lot of comfort in having a long term relationship with State Farm and our agent--not sure if that's naive on my part. And I take comfort in all our insurances being provided by one insurer--especially given the umbrella coverage over the home and cars. I don't know if our long-term relationship has resulted in lower costs. I'm sure our lack of claims has resulted in a discount.

What are my points? Cost shouldn't be the only criterion in choosing insurance. Finding an agent you trust is important. Also, based on what I was told last year, jumping around insurers could lead to your cover being dropped if you have a claim. And getting all your insurances with one insurer (not just one agent) could avoid headaches if you have a claim that crosses insurances (EDIT: or worse, falls between insurances).

P.S., I also checked Geico and Progressive last year on auto. Their rates were higher than what I was paying.

Broken Man 1999
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Re: Geico price too low??

Post by Broken Man 1999 » Sat Apr 13, 2019 1:44 pm

Paul78 wrote:
Sat Apr 13, 2019 1:00 pm
Yep a similar thing happened to me.

Was previously with Geico but got in an accident. Geico quadrupled my rate, most of the big companies tripled my rate, and then comes Progressive which only doubled my rate.

And still 2 years after the accident Progressive is by far the cheapest. Will be interesting to see what the rates are 3 years after the accident (ie when the accident will fall off my record).

On a side note I find it awkward that getting in an accident that has a "minor" medical claim puts you in the same category as an accident where the insurance has to pay out a 1 million dollar medical claim. At least this is what the Geico rep told me. In my case it almost would have been cheaper for me just to offer the other driver cash for his minor medical claim than the 3 years of increased insurance rates. Obviously that would have been a dumb move as it would not have been legally binding AND per insurance company they have a 10 year window to file the medical claim.
Progressive was our insurance company during the DDs' early driving history. One daughter seemed to be in an accident every few months.

True story, I dropped her off at a repair shop so she could pick up her just repaired vehicle she had wrecked. I drove home, and got a call from her, she had just had a fender bender! :oops: I think one summer her entire summer earnings were forfeited to me to pay for her accident costs, both deductibles and premium increases. I forgave her when she scored a scholarship for college. I figured we were even.

The interesting thing is Progressive did increase my premiums, but even with the history of numerous accidents, my rates were cheaper than my friend's rates for his sons, who had better driving records that my daughter(s). Progressive was easy to work with, they knew I'd be back with a higher premium before long. :x

Due to Flo's commercials, I cannot afford Progressive now, so I'm with MetLife. I think sometimes companies don't like to insure modified vehicles, when they pull up the VIN of my van, they see the basic chassis and driver's cab the wheelchair van was built upon. I imagine rather than do due diligence on my van's specifics, they simply throw out a rate that will not be accepted.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven than I shall not go. " -Mark Twain

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