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  • Report:  #248329

Complaint Review: Geico Auto Insurance - Washington District of Columbia

Reported By:
- Johnson City, New York,
Submitted:
Updated:

Geico Auto Insurance
One Geico Plaza Washington, 20076 District of Columbia, U.S.A.
Phone:
800-861-8380
Web:
N/A
Categories:
Tell us has your experience with this business or person been good? What's this?
I've had insurance through Geico for more than 5 years and never had any problems until now.

When I first obtained insurance through geico I lived in a small town in upstate New York. A couple of years later I moved to the next town over (also small) and did not see an increase in my premium. Recently, I moved back to the small town I originally was insured at and my policy was assessed an additional $67! I called geico for an explanation and was told that although I was now insured in a SMALL TOWN only 5 miles away from where I last resided, this area had a higher "rating" than the last town. How could these two small towns only 5 miles apart with approximately the same population have drastically different "ratings"? I would have certainly understood my premium going up if I had moved to a city but the next town over?

The representative informed me that all auto insurance companies do this. I did some research and received quotes from well known companies and I was not assessed such a fee. Bottom line: if you live in a small town it does not pay to go with Geico.

Laura

Johnson City, New York
U.S.A.


8 Updates & Rebuttals

D

Florida,
Florida,
U.S.A.
Insurance rates are based on a lot of risk factors

#2Consumer Comment

Tue, October 16, 2007

Insurance rates are based on numerous risk factors including: car cost, type, how many accidents this type of car is in and how much it costs to fix, location, how many accidents have happened in this location... NOt to mention a gazillion factors that have to do with just you personally.


Ldeit3tk

Locust Grove,
Virginia,
U.S.A.
ever filed a claim?

#3UPDATE EX-employee responds

Sat, August 04, 2007

In your "report" you continously mentioned you have an excellent driving record, but that is not the only deciding factor in insurance rates. You also mentioned that you have to pay higher rates for others driving carelessly, but that is not true either. Have you ever had a rock hit your windshield, park your car in an unsafe place, heard of trees falling on cars, hit a deer, skid on wet or icy roads, approached a dangerous intersection??? All of these can result in an accident and just becasue you are a good driver does not mean you are above having an ACCIDENT, that's why it's called an ACCIDENT because it cannot be predicted. And just as I';m sure you have received low rates because you statistically are unlikely to have an accident, your rates increase because in your new neighborhood you are statistically more likely to have an accident than in your previous neighborhood.


Ashley

Tampa,
Florida,
U.S.A.
Loyalty?

#4Consumer Comment

Mon, May 28, 2007

You've been with GEICO for 5 years... switching companies because of a rate increase would be a huge mistake! In most states GEICO offers accident forgiveness after you have tenure with the company... this is something you won't find anywhere else. This means that once you switch companies and decide you want to come back, you will lose all of the benefits you've aquired over the years. EVERY insurance company takes rate increases, I challenge you to find a company who has not taken a rate increase in the last few years. You have a wonderful premium!! Besides, I don't know of a company who doesn't use your zip code as a part of your rate!


Paul

Macon,
Georgia,
U.S.A.
here's a lesson for you on insurance

#5Consumer Suggestion

Fri, May 18, 2007

The actions of other driver's does affect your rates! Why? Because insurance is a shared risk. Think how much you pay for insurance and how much you are covered for. If I remember correctly, the minimum limits for New York is $25,000/$50,000. So that means if you hit someone, the insurance company can be liable for up to $25,000 per person. Now let's take what you pay for insurance. Do you think the premuim you pay would equal to that amount? Let say you pay $100 per month, or even $300. Once you are in an accident, just where is the insurance company suppose to get the other $24,700? So let's talk fair. What if the insurance compay said you only paid us $300, so you have to pay for the other $24,700? You'd think they are crazy. Well, the money would have to come from the other policyholders who are also paying their premium. Why don't you include this on you research. Find another insurance company that won't raise your rates because of actions of others and ask them that explicityly and post the name of the insurance company back on here.


Mike

Radford,
Virginia,
U.S.A.
There is no loyalty.

#6Consumer Suggestion

Mon, May 14, 2007

Companies quote a low rate to get you in then bump it up a little at a time hoping you won't bother to switch. You have to shop around often. Hint: A company that doesn't spend millions on an intense TV ad blitz with a talking CGI lizard may not need as much money from you.


Mike

River Edge,
New Jersey,
U.S.A.
Laura,

#7Consumer Suggestion

Mon, May 14, 2007

All insurance rates, whether it be car insurance, health insurance or life insurance are based upon criteria of certain groups. For life, it's the Mortality tables, etc. Geico is a weird car insurance company because they take into account your credit rating more than other companies, which is how they keep rates low for people. That being said, the reason why rates are higher for a different area could be many factors. Perhaps more cars are stolen from that town. Perhaps you drive further to work every day. May be more people in that town get into accidents. The fact is simply that car insurance rates vary from town to town, and state to state. Your best bet is to compare rates and go with whome you feel is the best for that dollar amount. As for your statement that it's not fair that you pay more because of other people, I feel your pain since I am a man and pay more for car insurance than women simply because I am a man.


Laura

Johnson City,
New York,
U.S.A.
let me respond to your "so called" rebuttal

#8Author of original report

Mon, May 14, 2007

Not to get off the subject, but you use ever changing gas prices as an example as to why Geico is justified in ripping off consumers who already pay too much for car insurance. Well then, can you explain exactly why gas prices are different at one side of town as opposed to another side of town? Not like it matters much to you or Geico, but It is usually the norm to raise the rates of a customer who has had a less than a perfect driving record. I on the other hand have a virtually spotless record, so I see no reason for my rates to have increased. So the bottom line is Geico feels justified in raising MY rates because of the actions of OTHER people who I have no control over. Now does that seem fair? Is our ever-increasing gas prices fair or justified? You be the judge.


Paul

Macon,
Georgia,
U.S.A.
do you pay for the same price for gas every week?

#9Consumer Comment

Mon, May 14, 2007

Now you've learned some new about insurance, rates do change all the time. Insurance rates are not static and is like gas prices. Ask yourself the same question, how can one part of town have a higher gas prices than one side? Or for that matter, what about gas station next to each other? Your new rate was not because of a fee, but rather determined by the loss history in that area. When you "research and received quotes from well known companies," guess what? You weren't comparing the other companies previous rates but rather you were given what the rates are now. Just like any other insurance company, one determening factor is where you live and rates are sometimes divided by zip codes. Bottom line: just because you live in a small town or move to another small town, doesn't mean that your rates will stay the same. Think about it. when you moved, did all the drivers from where you moved from moved with you?

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