Complaint Review: Geico

I am an insurance agent licensed in 15 states so I do know a little about insurance. For one, the fact that you have such little experance driving and the fact that you have had accidents and tickets is going to give you a higher rate. Sorry, that is the nature of the business.

As for Steve, you have submitted two reports about the same thing and have also gone on a rant about how insurance companies pay out less then they receive in premiums every year and how it is a big scam. One, insurance is a business just like everything else. Show me one company that isn't trying to make money and I will show you a company that is bankrupt. Two most states have liability limits at least around $25,000 per person, $50,0000 per accident. One Accident could cost the company thousands of dollars, and often do. There is no way an average person will ever pay that much money in premiums.

Auto insurance is a state mandated price of owning and operating a vehicle.As such, the insurance agency is heavly regulated and must get permission to do almost anything, EVEN RAISE THIER RATES. If you truely feel like you were cheated, stop your complaining and contact your stae insurance office. They can and will investigate any claim of fraud that is eported and if found to be true, they will fix your problem.

While I understand the complaints, why not just switch companies? It seems you are still staying with this company while b**ching about them. Apparently other companies want more money for the same coverage? If so, why?

1st, the insurance industry is NOT like the energy industry or your power company (who do provide services) who have several alternative ways to help people if times get tight with monies, etc. And the power company DOES NOT turn off your power if you miss a payment for a legitmate reason either.

Insurance companies DO NOT provide a service in that respect and have created a legalized extortion of consumers' incomes utilizing sleezy tactics, lobbysists in government who write rules to protect them, not the consumer, and use games and trickery to make more money in skillful ways off the backs of the consumer.

Insurance companies pay out such a miniscule cost of doing normal business (losses) than what they gain anually from premiums paid into them. Their own CEO's have extorted $Billions in consumers' premiums for their own gain, yet make damages and thsoe losses responsbility of the consumers who pay premiums monthly and this is not right. The inside games, tactics, bonuses and other incentives utilized by the insurance industry forces their brokers and adjusters and underwriters to act unethically by the motivation of money, money, money over and above all and this is wrong!

The whole US insurance industry needs busted up and investigated deeply for what many on the inside have known for years is occurring, and STOP blaming the consumer for your problems time and time again.

The amount of accidents are very small annually as are claims compared to the $Billions in profits you generate annually reinvesting consumers' premiums in a variety of ways.

in order to make your dealings with auto insurance companies as smooth as possible. I am sure that most people currently following the 2 simple suggestions I am about to give will not feel that they are "being ripped off" and most people not following the suggestions, of course feel ripped off, but in essence you are ripping YOURSELVES off. Here goes...

1) Don't cause accidents - big or small, it doesn't matter. The OP proved a terrible driver, and unfortunately, is suffering those consequences.

2) Pay your bill on time. You are paying for a service. Don't pay your electricity bill, it gets shut off - same concept here.

I just think it's funny how no one takes personal responsibility. The people paying their bills and not having accidents don't have any complaints, it's always the people who are screwing up that feel that they are being ripped off.

Look people. My other post to our ordeal now has us talking with Supervisor today with GEICO. She admitted GEICO made a mistake and dropped our coverage to basic liability but premium the same as full collision previously. The policy number is still the same as it has been. NO new policy, etc..

GEICO contacted DMV and said we had over a 30 day lapse. This is not true. We in fact have overpaid our policy. We talked to DMV and they do not understand what is going on, but will charge us a lapse fee unless GEICO shows them we did have insurance.

GEICO supervisor tells us they cannot do anything until policy comes up for renewal in July. But to get our collision back (as our lienholder requires of course) it will cost us 50% more in premium as we no longer are on their premium rate coverage..

What is going on?? Even the DMV agres with us and wants GEICO to fax a FS1 form showing we DID have coverage, yet GEICO says they cannot do anything until policy renewal..

This is a scam!!!

I have checked with all of the online insurance companies, and NOT ONE can come close to what the local agent gave me. 43 yo female, licensed for YEARS (don't make me go there! lol), no accidents, no violations, driving a 1996 Lumina.... plpd coverage through our online friends? 893-1486 per 6 months. Through my insurance agent? $222 per 6 months! It's well worth your time and effort to stop by and get to know someone locally, because they truly will find you the best deal available. Dump Geico and Progressive on their heads and go local!!

People mistakenly think that because they've been with an insurer for a while that they have some kind of tenure with them. Nothing could be farther from the truth. Each year is a new contract. From the insurance companys view, you are reviewed as a new risk. They show no loyalty, thus for me, each year I review my policies and get new quotes. And if I find a better deal, I'm gone with no hesitation. Thats the way people should veiw insurance. You don't get any tenure with them and they get no tenure with you. And be cold about it. They'll be cold when assessing you.

I posted our situation on another GEICO posting, and basically; we have been with Geico over 5 years, no at fault or other accidents whatsoever, and because of mail slip, our payment did not get there on time. We called to pay premium ahead in fact and they told us they cancelled our policy.

Then they told us to reinstate a new policy it would cost us 50% more for same policy and comp coverage we were paying already.

Then as we argued this unjustice, they gave us only liability for price of the previous full comp policy and told us we had to take our car to a Geico inspection service station so we did. There is no damage whatsoever to our vehicle and it is only 4 years old and well maintained, and we STILL owe a loan on this vehicle! Right now we are trying to see if they are going to get us our previous preferred rate status we had for years and full comp or not? We already have taken steps to Insurance Commissioner of NC because of this slick move by them which can only be called another financial scam.

What is funny, is the new liability policy they had to create "brand new" has the same d**n policy number as our previous comprehensive policy we were paying before they did this to us! So how could a policy supposedly be cancelled I ask? Something is real fishy at Geico.

The WHOLE insurance industry needs turned upside down because of many inappropriate practices to make more monies off consumers and their risk structure and computer program they input data is very biassed and way beyond fair. It operates within regulations lobbied for that allows for a kind of legalized fraud on the American consumer and this crap has got to stop! All the excuses they have made about losses and to increase rates is BS, as there is such a small amount of annual ppay-out by any of them, versus the $Billions in assets/holdings/investments they make with all our free payments to them. Then you have to look at CEO's and corp heads and the fraud they have been caught with.

BTW, I have been driving almost 30 years with spotless record too and have paid tens of thousands USD in premiums to insurance companies and receive this treatment from Geico now? Thing most people don't realize, is Geico or other insurers can and do make input notes on a computer system that they sue to manipulate and cause increase in premiums and this should be looke dinot and investigated.

....but you have had a license for 4 years and been in 2 at fault accidents? I can see why your rates would increase...an average of 1 accident every 2 years is going to cause any insurance company to review your policy to ensure they are rating properly for the risk.