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In this article, you will learn the top 5 reasons why you should say “no” to Geico Insurance for your Autos, House, or Renters Insurance. Make sure you read this before signing up for insurance!
Reason Number 1 To Never Get Geico Insurance: Your Geico Quote Isn’t Real
The jingle “15 Minutes Could Save You 15% or more on Car Insurance” may mislead some viewers. It’s true that you can get a quote in about that amount of time but it has some major drawbacks. The biggest is that because they often don’t run your driving record until after you pay for your first month. I know several people who signed up for Geico and are shocked when that 2 year old speeding ticket or 4 1/2 year old not-at-fault accident they forgot about shows up on their record and their rate skyrockets.
Reason Number 2 To Never Get Geico Insurance: You Could End Up Owing Geico Money
Because they end up running your reports later, if there is an up-charge in your rate, you will usually find out about it the following month. Hypothetically, let’s say the quote is for $85 a month for your car. After you pay that, get insured and drive with their insurance for a month, Geico finds an accident on your record from two years ago. Not only will your insurance go up to, say, $350 a month but now they will charge you the difference for the first month during your second month. You were expecting a bill for $85 but instead you have a bill for $615! If your bank account doesn’t have that, you’ll end up with an overdraft fee, canceled insurance and you’ll still owe Geico $265 for that first month! This may actually prevent you from being able to get car insurance from another carrier.
Number 3: You’ll Pay For Their Ads
We all have our favorite television commercials but, remember, the customers of the business are usually footing the advertising bill. Geico spends so much on advertising that their rates are higher than a company that doesn’t have that expense. If you find a Geico ad annoying, be sure to thank your neighbor for paying for it.
Reason Number 4 To Never Get Geico Insurance: They May Classify Incidents The Wrong Way
This comes from an experience I had selling car insurance over the phone. I was speaking to a man who said he had a collision incident of running into a deer about 2 year prior to calling me for a quote. I was ready to set him up with a SafeCo policy that would’ve ended up giving me about a $120 commission. All excited to save money on his insurance, he gave me permission to run his record. I ran his driving record and saw that the incident was characterized as an at-fault car accident. Because he was a high risk driver, SafeCo ended up rejecting him completely! Either he wasn’t telling the truth or someone at Geico messed up on paperwork.
Reason Number 5 To Never Get Geico Insurance: Their Rates Aren’t Always Competitive
Geico is the second largest auto insurer in the US. Some people have found their rates to be some of the lowest. They can keep rates low because it is unlikely they will have to pay out for many accidents compared to their number of policyholders. However, whatever they charge you above costs are profit. I have often found several smaller insurance carriers to have much better rates. Smaller insurance carriers often don’t have billions to spend on national advertising. To attract customers, they often attempt to have the lowest possible rates. It usually doesn’t matter which car insurance company you chose. Because insurance companies are highly regulated requiring them to have huge cash reserves. The only thing that really matters is the cost of their premium.
Summary
That’s it! Those are my top 5 reasons to never get Geico insurance. What do you think? If you’ve had a great experience with them, be sure to leave a comment about it. Of course, getting a quote with them shouldn’t hurt but be weary that it could increase at a later date!
If you want to know which company I recommend for car insurance, read my review here!
Or just get a quote with Root Insurance today!
Adam is a license Property and Casualty Insurance Agent for over two years in 25 States. He has worked with 10 different insurances companies. His interests include marketing, insurance, sales, and personal finance.
Adam is a license Property and Casualty Insurance Agent for over two years in 25 States. He has worked with 10 different insurances companies. His interests include marketing, insurance, sales, and personal finance.
