mmarshall

I got something really unexpected (and nice) when I was ready to sit down and write my GEICO six-month premium-check. Since my new 2018 Lacrosse (on order) won't be in for some time yet, I figured I'd write my six-month check (good from June to December) for my current Verano, and then just update the policy when the new car comes in. I was on the phone, with a GEICO rep, asking about how much (if any) my rate would go up with the new car. She put me on hold, checked on something, and told me I qualified for a brand-new system that GEICO has in place, currently in Virginia and some other states (not everywhere) that heavily cuts rates for people (like me) with a long record with the company (I've been with them 35 years), have good credit, have shown financial responsibility, and, of course, have a good driving record. In effect, my rate would be cut in half...from $800 a year to $400 a year, or $200 every 6 months. Even before this, I already had, as a VIP customer, an automatic policy-renewal for life as long as I wanted to stay with GEICO....I wouldn't get turned down for any reason. I told them sure, sign me up...and they made good on the promise. I looked at the new documents carefully today when they came in the mail......same policy limits, same exact coverage, everything the same, except for the 6-month price.....half of what it was before. So, I wasted little time getting that new, much lower check in the mail.

GEICO also seems to like Buicks (and generally rewards them with low rates), presumably because they tend to be owned and driven by non-aggressive drivers who don't have a lot of accidents (especially major accidents) and cost the company a lot of money. They told me the new rate on my Lacrosse, when it comes in, would be only $10 more a year....for a much newer and more expensive car. That also surprised me.

Some of you GEICO customers (especially you long-time ones and those with good driving records) might want to check into this, although, as of now, it is not available in every state.

ragingf80

That's great, mmarshall! I envy your rate. With all the cars I own and my many many tickets, I pay close to $5k a year and YES IT SUCKS. For reasons that can only be told in a long and boring story, I have my home insurance and car insurance under different carriers. In a few months a ticket will be falling off my record which will reduce my premium by a few hundred. I'll also be switching back to my old carrier with my home insurance for a multiple discount policy. That will bring the yearly savings to almost $1k. I literally can't wait. I totally regret not being a better driver and saving all that money in premiums.

geko29

The pessimistic way to look at it would be they've been overcharging you all these years. Your new rates are pretty close to what I've paid for the past 12-15 years, as a twenty/thirtysomething driver of a BMW 3 series, with the legal limits in every coverage category.

mmarshall

Possibly. But, if that were the case, I would probably have been over-paying even more at other companies, as, after more then three decades, I haven't seen anybody yet who undercuts GEICO's prices for my specific needs (and, being a civilian, I don't qualify for USAA's low military rates). However, insurance companies can't just charge (or not charge) anything they want, any time, or offer any program they feel like. Though they do have some flexibility to set their own rates, in general, how they do business is tightly regulated by the Insurance Commission in each state. That's why certain programs (and rates) are available in some states and not others....and why the insurance companies sometimes make a good profits or lose money in certain states, under some conditions.

One difference between you and me, though....I have considerably more than just the bare legal limits in my state, although, being single and driving alone much of the time (and reviewing/test-driving cars alone or with a sales rep, except when car-shopping wth others), I usually don't need as much insurance as someone who regularly carries passengers every day and exposes them to an accident.

geko29

I said I had the legal limits, not the legal minimums. Illinois drivers cannot carry more than $250k/person, $500k/accident auto coverage (at least that was the case a few years ago, the last time I checked). If you want more than that you have to take out a separate umbrella policy. So 250/500 is what I have. The minimum is 25/50.

Johnhav430

First of all congrats, saving is SWEET!

I was excited to shave $68/mo. off the monthly cell phone bill, and another $24/mo. off the cable bill, and I'm sure these pale in comparison.

I had a bad experience with Geico. The ONLY time I wanted to make a claim, the phone rep argued with me for 40 min. asking me to try a windshield repair (in driver's view), when I wanted OEM Saint Gobain Sekurit glass on the BMW. I won, but why waste 40 min. of my time, and yours?

Anyway, they did pay for an OEM BMW windshield (logo on glass), and I left to those guys with the hands. Rate went down considerably, making me wonder the same....I had zero accidents and was a loyal customer for about 7 years. Insurance is bizarre, because I have dropped the BMW when it was in storage, blah blah blah, and I kid you not, you don't see the total policy drop by what's listed (example--Maxima had liab/comp, no collision, showing as $400 on the policy--$400?? They said if I drop it, it will only go down by $170--these are 12 mos. btw). One time, with the hands people, I said some dude at State Farm emailed me with a lower rate and I'm going to switch (I was bluffing the rate was higher). My agent stated let me make sure you're getting all the discounts you're entitled to, nope, you were getting a paper copy of your homeowners, I just switched you to paperless and that saves 19%. WHAT?! 19%? That's almost 1/5.

I have tried over the last two years punching in info (most of it pre-enters) online, and can't seem to get the rate any lower. This is in a metro area, 5th largest city in USA:

looking up numbers they have gone up, these are annual

wife's 2011 $7xx
2007335i $9xx
2006LS430 $9xx

My 335i was under $700 when it was brand spanking new in 12/06. Now it's worth 1/5, and higher lol (I don't buy the insurance industry's explanation as they can so easily write it off)

edit: removed the exact details
p.s. the Nissan Maxima had zero claims in 19 years, imagine all that wasted money towards insurance, tough pill to swallow, collision was only dropped 6 years ago, it's probably time to drop collision on all 3 cars, maybe not wife's still over 20k wholesale, not the other 2 cars though...looking at the line items, the LS430 is more for both collision, and comp, than the 335i. Interesting how it's lower overall....

mmarshall

OK...Thanks for clarifying that. My policy, BTW, is 300/300. The limits you are at shows how tightly insurance is regulated in each state. GEICO used to offer policies of up to one million, but only with the personal approval of a company Vice-President or higher. I don't know it they are still offered at that level or not.