I had a great driving record, and after 1 minor fender bender, my insurance went up 400...?
...dollars a year. is this normal?
I could not believe GEICO. I was on their safe driving plan, and was paying about 820 a year for insurance. After 1 minor weather related fender bendor, they took me off the safe driving plan and increased my car insurance to about 1300 dollars a year. Am I alone here, or is this car insurance protocol. Any suggestions or comments would be appreciated
- 9 years agoFavorite Answer
And, if you have more than 1 car, the penalty can apply across all your cars!
I am a GEICO customer and have been so for over 20 years. I am a happy and loyal customer. I find they are very competitively priced. Their service quality is also outstanding. And, when I was once subject to a nuisance lawsuit, they defended me (and themselves) very professionally and effectively.
Their customer service agents will work with you over the phone to figure out how you can reduce your premiums. Sometimes, you can do this by providing a more accurate picture of who drives which cars and how many miles are driven annually per car. You also can figure out how to tweak your coverage limits. Sometimes by increasing your deductibles, you can significantly lower your premiums. I would call them up, explain your situation and while you understand why you are paying higher premiums, it is killing you. Ask them for suggestions on how you can perhaps tweak your policy to reduce the premiums. I have always found them helpful.
Over the years, our cars have been involved in a handful of fender benders. With one exception, none was our fault. A nanny was removed from the policy (and fired) after crashing our car twice. Pot-smoking uninsured teenagers were responsible for crashing into our car once. Why is it always the huge cars that back up into you when you are in a parking lot? Why couldn't it have been a subcompact?! I don’t recall any of those affecting my premiums significantly. When my spouse accidentally scraped the side of our car against a dumpster when making a turn...that was our fault. Stupidly, the claim was reported. BAM...all 3 of my cars were hit with a risk surcharge. The intelligent thing would have been to take the car into the auto body shop and pay for the repair out of pocket. Instead, I paid more in higher premiums over a couple years. BUT, the good news is that good driving brings your premiums back down again. I do not think this experience would differ much across insurance companies. Since GEICO is low priced, it is possible the risk adjustment is greater on a percentage basis...I don’t know. I have periodically compared GEICO to State Farm which is another excellent carrier. But, State Farm has always been significantly higher priced.
I don’t know if this is the right thing to do or not; but, in the NYC area where there are a heck of a lot of drivers, many of whom seriously need to take driving lessons, this is my auto insurance strategy:
Get minimum (NY State) property and casualty limits Buy a $1+ million umbrella liability policy above the minimum liability limits (it may not be advisable for you to do this until the accident is a couple years behind you; again, GEICO was priced much lower than State Farm) Set deductibles to $1,000 or whatever you are comfortable with. I used to have low deductibles--$500, $200, $100, etc. That’s good for keeping your exposure on a claim low; but, you pay for this in higher premiums. Unless one is planning on annual accidents, it seems smarter to self insure the smaller amounts. Since I insure for major accidents, I decided to self insure the small incidents. If we were to get into a small fender bender, I would probably negotiate with the other driver to have the guilty party pick up the tab at an acceptable auto body shop and not report the incident to our insurance companies. If I were in a significant accident, I would of course report the accident and would therefore expect my premiums to rise.
I hope this helps. Drive safely.
- 6 years ago
I have just been dealing with the same issues with Geico Im 50 never had a claim accident or traffic violation since i have been driving.. Pulling out of a motel 6 where the only way to exit is to make a left turn I was stopped by police for doing just that. there was 12 others that was stopped doing the same.. This placeds 3 points opn my record in 2011 but with the purchase of a used car it didnt show up on my insurance till last month and doubled my cost for Liability. THIS is with such a good record.. and they wouldnt work with me at all...
now being out of work i cant afford to pay such a increase. this is putting me in a bad situation but a good past record doesnt account for anything when Geico is concerened
its all about $$$$$ in there pockets no matter how it effects a customer for several years
and no claims..
- Anonymous9 years ago
I have insurance through Progressive. When I had been driving for about a year and a half, I had an at-fault accident. My insurance went up about $60 that year. That's it. No hassle, no problems, just $60. Also, don't forget that I had not been driving very long, so I didn't have any history behind me. I would start looking for quotes from other insurance companies.
Check out Progressive! I've been happy with them ever since I started driving.
What GEICO did to you is a shame. Definitely check out other companies if you can't get this situation resolved.
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- Anonymous9 years ago
That little fender bender is going to prove expensive as you will pay the higher rate for some time until the fender bender points fall off your record. The fender bender may have cost the insurer thousands in claim costs and they will recover it from you by boosting your rate not to mention you are statistically a more risky driver now.
- 9 years ago
I suggest that you should stop being insured with geico. Allstate and State Farm are way better. Wew Have Allstate and we have 3 cars.we only pay 80 dollars a month.Plus it's way better and it insures you better.plus we're talking 3 cars for 80 bucks! that's an awesome deal.
- Anonymous9 years ago
The lower rate is just an initial lure for the "cave men"!
We have the NJ Manufacturer's Insurance Co. and they do not penalize anyone if they have any accidents. If you have too many they might decline to cover you eventually.
Check around and if you find a better price insurance threaten them to take your business elsewhere.
- Anonymous9 years ago
How much did your fender-bender cost to repair, both you and any other involved party?
The insurance company has to recoup their costs somehow. They're not in the Santa Claus business.