GEICO Umbrella: Significant Increase in Premium

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neilpilot
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Re: GEICO Umbrella: Significant Increase in Premium

Post by neilpilot »

My $2M renewal premium in TN, due end of April, is a 60% increase over last year. GEICO says this increase is market wide in TN and does not reflect my personal risk. Based on that I’m moving my auto & umbrella to State Farm. While their auto is a bit higher, their $2M umbrella comes in at about half of GEICO and more than makes up for the difference.
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patriciamgr2
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Re: GEICO Umbrella: Significant Increase in Premium

Post by patriciamgr2 »

I'd like to repeat my earlier thanks to Forum members for sharing their renewal experiences. It helps each of us to be a better consumer. Thanks for taking the time--I know how busy everyone is. Kind regards, Patricia MGer
abner kravitz
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Re: GEICO Umbrella: Significant Increase in Premium

Post by abner kravitz »

JonnyDVM wrote: Tue Oct 27, 2020 6:36 am You need to find an independent insurance agent to do all the legwork for you. I did that this year and it was soooo much easier than spending hours shopping around. Typically bundling home/auto/umbrella with one company will be the way to go. Coincidently the best option for me was Geico/Travelers.
I think this is good advice. Until recently I assumed you would get better rates if you did the legwork yourself, but I have found that it is really not the case. I will probably never buy insurance without an agent going forward, it is a much better experience
tj
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Re: GEICO Umbrella: Significant Increase in Premium

Post by tj »

abner kravitz wrote: Thu Apr 22, 2021 12:57 pm
JonnyDVM wrote: Tue Oct 27, 2020 6:36 am You need to find an independent insurance agent to do all the legwork for you. I did that this year and it was soooo much easier than spending hours shopping around. Typically bundling home/auto/umbrella with one company will be the way to go. Coincidently the best option for me was Geico/Travelers.
I think this is good advice. Until recently I assumed you would get better rates if you did the legwork yourself, but I have found that it is really not the case. I will probably never buy insurance without an agent going forward, it is a much better experience
Well, yeah, you won't have access to all the insurers if you DIY, but you can look up premium comparison on your state and see what insurers you might want to try to get quotes from. That's how I ended up with Auto Owners in Arizona. No way to get a quote on my own.
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ShaftoesSpreadsheet
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Re: GEICO Umbrella: Significant Increase in Premium

Post by ShaftoesSpreadsheet »

Planner01 wrote: Thu Aug 06, 2020 4:24 pm I have an umbrella policy with Geico for $1M, as well as the cars, and home. I was paying $200 for the year. The new premium as of September when it renews is $362!
I just got hit with the exact same hike for the Geico for $1M umbrella. Decided to stay for now but will shop around this summer.
DesertGator
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Re: GEICO Umbrella: Significant Increase in Premium

Post by DesertGator »

Couple months ago Geico refused to renew my $2M umbrella, listing 3 auto claims from different family members, most recent was over 3 years ago, the remaining two were each 1 and 2 years older than that. One claim ended up paying $0. The total of the other 2 were less than $1000 combined. No tickets. A+ students. Association Discount, bundled policies.

Not having an umbrella was unacceptable, so I shopped the market. I easily got coverage from Nationwide, including umbrella for more than 60% less for everything than with Geico. I even replaced my Geico-sourced homeowner's policy with a Nationwide policy...literally got significantly more/better coverage for 1/2 the cost.

Kicking myself for not kicking Geico years ago...had been with them about 15 years. I know to shop insurance every 1-2 years but have been very busy.
BruDude
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Re: GEICO Umbrella: Significant Increase in Premium

Post by BruDude »

Mine just renewed and they increased it 50%. Haven't shopped around yet...
Northern Flicker
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Re: GEICO Umbrella: Significant Increase in Premium

Post by Northern Flicker »

Grt2bOutdoors wrote: Wed Mar 31, 2021 10:49 pm My wild guess on why premiums are rising: the insurer deliberately mispriced their offering to build a book of business but now is reversing course to lower their overall expense ratio lower than 100, expenses above 100 denotes operating at a loss.
I call that bait-and-switch.
My postings are my opinion, and never should be construed as a recommendation to buy, sell, or hold any particular investment.
Northern Flicker
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Re: GEICO Umbrella: Significant Increase in Premium

Post by Northern Flicker »

When shopping insurance, lowest rate is not my highest priority-- (my perception of) the experience I will have if I need to file a claim is my #2 priority. Getting the policies I need is #1. Price is #3.

Rightly or wrongly, I expect a better claims experience from State Farm, Amica, or Traveler's than I do from Allstate, Liberty Mutual, Progressive, Nationwide, or Farmer's. USAA and GEICO fail criterion #1.
My postings are my opinion, and never should be construed as a recommendation to buy, sell, or hold any particular investment.
Northern Flicker
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Re: GEICO Umbrella: Significant Increase in Premium

Post by Northern Flicker »

talzara wrote: Wed Dec 30, 2020 2:20 pm The top four companies have over 50% of the auto insurance market.
This has different market share data, but includes property casualty as well.
The top 10 property/casualty companies reporting to date have a cumulative market share of 50.04%.
My postings are my opinion, and never should be construed as a recommendation to buy, sell, or hold any particular investment.
Osprey
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Re: GEICO Umbrella: Significant Increase in Premium

Post by Osprey »

DesertGator wrote: Thu Apr 22, 2021 4:07 pm Couple months ago Geico refused to renew my $2M umbrella, listing 3 auto claims from different family members, most recent was over 3 years ago, the remaining two were each 1 and 2 years older than that. One claim ended up paying $0. The total of the other 2 were less than $1000 combined. No tickets. A+ students. Association Discount, bundled policies.

Not having an umbrella was unacceptable, so I shopped the market. I easily got coverage from Nationwide, including umbrella for more than 60% less for everything than with Geico. I even replaced my Geico-sourced homeowner's policy with a Nationwide policy...literally got significantly more/better coverage for 1/2 the cost.

Kicking myself for not kicking Geico years ago...had been with them about 15 years. I know to shop insurance every 1-2 years but have been very busy.
I just got a notification that geico wasn’t going to renew my umbrella due to auto violations in 2019 and an accident by my child in 2016. Child is an adult who moved out of our house in 2018. Auto policies reflected no kids in house but umbrella didn’t. Have sent letter and utility bill showing child is living elsewhere and geico is reviewing the info.

Based on this thread I may get a price increase if they decide to offer me an umbrella policy renewal. Great info on this thread, so I won’t be surprised if I get a premium increase if they renew the policy. Time to shop around!
Grt2bOutdoors
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Re: GEICO Umbrella: Significant Increase in Premium

Post by Grt2bOutdoors »

BruDude wrote: Thu Apr 22, 2021 8:05 pm Mine just renewed and they increased it 50%. Haven't shopped around yet...
When you shop do you use an independent agent or do you call each company independently?
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BruDude
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Re: GEICO Umbrella: Significant Increase in Premium

Post by BruDude »

Grt2bOutdoors wrote: Fri Apr 23, 2021 6:19 am
BruDude wrote: Thu Apr 22, 2021 8:05 pm Mine just renewed and they increased it 50%. Haven't shopped around yet...
When you shop do you use an independent agent or do you call each company independently?
I usually call 3-4 captive companies (State Farm, Farmers, etc) and 1 or 2 independent agents. Property and casualty it a little different given the prevalence of captive companies where the agent can’t sell any other products.
tj
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Re: GEICO Umbrella: Significant Increase in Premium

Post by tj »

Northern Flicker wrote: Fri Apr 23, 2021 12:17 am When shopping insurance, lowest rate is not my highest priority-- (my perception of) the experience I will have if I need to file a claim is my #2 priority. Getting the policies I need is #1. Price is #3.

Rightly or wrongly, I expect a better claims experience from State Farm, Amica, or Traveler's than I do from Allstate, Liberty Mutual, Progressive, Nationwide, or Farmer's. USAA and GEICO fail criterion #1.
Why can't you get the policy you need from USAA? What criteria do you use to determine State Farm, Amica and Travelers would be better than Allstate, Liberty Mutual, Progressive, Nationwide or Farmers?
talzara
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Re: GEICO Umbrella: Significant Increase in Premium

Post by talzara »

Northern Flicker wrote: Fri Apr 23, 2021 2:43 am
talzara wrote: Wed Dec 30, 2020 2:20 pm The top four companies have over 50% of the auto insurance market.
This has different market share data, but includes property casualty as well.
The top 10 property/casualty companies reporting to date have a cumulative market share of 50.04%.
Private passenger auto is on page 6. The top four companies -- State Farm, GEICO, Progressive, and Allstate -- have 52.14% of the auto insurance market.

Auto insurance is much more concentrated than the other lines of insurance, and it's getting more concentrated every year.
Northern Flicker
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Re: GEICO Umbrella: Significant Increase in Premium

Post by Northern Flicker »

tj wrote: What criteria do you use to determine State Farm, Amica and Travelers would be better than Allstate, Liberty Mutual, Progressive, Nationwide or Farmers?
Personal experience and experiences of people I know with some of the companies (State Farm, Farmer's, Amica, Allstate, Progressive), issues with quotes from some of the companies, and ratings of claims experience by organizations I trust for the other companies on the list were how I arrived at my assessment of the companies for customer service. I had a hard time getting a quote from Traveler's which did not bode well, but they seem to be rated highly.

I mainly just consider State Farm and Amica for my insurance needs. I'm not in the category of people who need to deal with Chubb to meet insurance needs, but they have a high reputation for service, presumably with a cost level to match.

I'm not suggesting that the other companies are bad, or that they should be avoided. Rather, that State Farm and Amica may not be the cheapest options, but the extra cost (which is not dramatic) is worth it to me.

For auto insurance, I don't think it matters so much.

For homeowner's insurance, some companies seem cheaper, but they also may be rating the cost per square foot to rebuild lower, leading to a lower dollar value for the structure. If your house burns to the ground in that scenario, it won't be rebuilt with the same quality of finishings as you had, and the replacement house will be worth less.
My postings are my opinion, and never should be construed as a recommendation to buy, sell, or hold any particular investment.
LPSpecial
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Re: GEICO Umbrella: Significant Increase in Premium

Post by LPSpecial »

OnTrack2020 wrote: Tue Oct 27, 2020 5:54 am We pay a ridiculous amount for umbrella--over $800 for $1M. I should add we do have young adult/teen drivers. I don't know if we can get it any lower.
We also have a young adult and a teen driver. The next renewal went up quite a bit. It is just under $700 for $1M of coverage.
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Flobes
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Re: GEICO Umbrella: Significant Increase in Premium

Post by Flobes »

My GEICO $1million umbrella renewal notice just arrived. Increase of $1, to $121 this year.

2021 $121 • 2019-2020 $120 • 2014-2018 $104

I was pleasantly surprised, having followed this conversation. Datapoint: Not all GEICO umbrellas are significantly increasing.
Gill
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Re: GEICO Umbrella: Significant Increase in Premium

Post by Gill »

I hadn't paid much attention to this thread until my premium notice from Geico arrived. The Umbrella policy increased from $670 to $1,111 for $3M of coverage, a 66% increase on top of a smaller increase last year. We are the most risk free couple imaginable with a house and two cars which mainly sit in the garage (about 3,500 miles combined last year). Time to shop around.
Gill
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patriciamgr2
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Re: GEICO Umbrella: Significant Increase in Premium

Post by patriciamgr2 »

Yes - the bizarrely large percentage increase in my Nevada premium (and I am also someone who wouldn't appear to pose much underwriting risk either) is what prompted me to post in the first place. OTOH, Flobes' increase was in line with what I had experienced for many years--a miniscule premium increase. I don't know what state Flobes is in. Another poster noted that GEICO was playing "catch up" with premiums in some states. In any event, thanks to all for posting your experiences. We'd all love to learn of any experiences from shopping the coverage around. Regards, Patricia MG-er
Osprey
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Re: GEICO Umbrella: Significant Increase in Premium

Post by Osprey »

Osprey wrote: Fri Apr 23, 2021 4:50 am I just got a notification that geico wasn’t going to renew my umbrella due to auto violations in 2019 and an accident by my child in 2016. Child is an adult who moved out of our house in 2018. Auto policies reflected no kids in house but umbrella didn’t. Have sent letter and utility bill showing child is living elsewhere and geico is reviewing the info.

Based on this thread I may get a price increase if they decide to offer me an umbrella policy renewal. Great info on this thread, so I won’t be surprised if I get a premium increase if they renew the policy. Time to shop around!
[ quote fixed by admin LadyGeek]

Geico decided to renew our $2M umbrella policy and the price increased from $449 to $479.
DesertGator
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Re: GEICO Umbrella: Significant Increase in Premium

Post by DesertGator »

I can't remember the details, but I remember about a year ago Geico sent a policy change letter about that last renewal of my Umbrella, and I remember really not liking it. I wish I could remember what the change was.

In any case, I'd encourage you if you are keeping Geico's umbrella because you are happy with the rate, to review the last 1-2 years of policy terms/letters to make sure you are still happy with the wording.
Ron Ronnerson
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Re: GEICO Umbrella: Significant Increase in Premium

Post by Ron Ronnerson »

$1M policy, renewed today. Went from $224 to $226, so a 1% increase.
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