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anOnymouzandydick
anOnymouzandydick
27d agoHealthcare

Saved about 50% cancelling and signing up for the same auto insurance

Have Geico, they have been increasing my rates for a while. They were now asking $640. I started a recent quote with them with everything the same (same coverage, same cars, same folks), it came to $365. I've had geico for 10+ years, no claims, you'd think they might decrease my rates, but no. I think they recently slowly increase thinking most people will just auto renew. Glad I shopped around again and rebought.

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Upvoters65

1KeenViper3769KeenViper3769Early29d ago
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45 Comments

Maker_5999
Maker_5999· 28d ago

There's a good chance you'll see a rate increase retroactive to the inception date of your new policy once they complete their underwriting. Maybe it won't happen, but don't be surprised if you get a jump in premium and a bill for the unpaid amount for the first month or two.

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AdSpecialist6599
AdSpecialist6599· 28d ago

Started today, paid in full 6 months yesterday

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Fickle-Ad5451
Fickle-Ad5451· 27d ago

I just today helped a relative get new insurance and geico came in the lowest of 3. So I started the payment process and Lo and behold, when the pre-payment summary page came up, the monthly rate went up almost 50% putting their number very close to the other two. There was a ...

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FoxCalm65
FoxCalm65· 27d ago

Give us an update in 30 days lol

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BraveBanker_651
BraveBanker_651· 27d ago

If there is still a reply under my comment being a person that responded about a company can’t change or cancel the policy, and then clearly blocked me - yes, a company can cancel a policy at any time and yes, they can change the premium from the initial figure because a bound...

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471z5-y6v7
471z5-y6v7· 27d ago

Another day, another person who fundamentally doesn't understand insurance.

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BloomberfTAx
BloomberfTAx· 28d ago

explain...

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Dark-Panda660
Dark-Panda660· 27d ago

Just illustrates how backwards and conniving the industry has become.

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2o1v77ix_ek62
2o1v77ix_ek62· 27d ago

When they realize you did this, don't be surprised if they cancel your policy or increase the rate to what it was before.

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FoxBright64
FoxBright64· 27d ago

They tried to tell me you can't use a new quote unless you cancel and leave us for 6 months. I just hungup and went to the new signup department and signedup. Called customer service on the old policy and cancelled that.

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Oraxy5_1
Oraxy5_1· 28d ago

My thought is whatever the old policy was had better terms or coverages and they are now getting a lesser terms/coverages as it updated to a new product

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Calm_Cat
Calm_Cat· 28d ago

exact same, apples to apples

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elxXip
elxXip· 27d ago

I work for Geico lmao. In sales, and yes when we find out expect that old rate to come back ;)

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Snail_2052
Snail_2052· 27d ago

Any tips on getting a lower rate

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AlexKim
AlexKim· 27d ago

Don’t be surprised if your rates go up at a later date once the insurance finalizes their review.

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twdVermont8
twdVermont8· 27d ago

the only problem with this is whether they let you cancel and buy online. It worked for me a couple of renewal cycles until progressive wouldn't let me cancel online and start the new policy the day before online

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TypicalTemperat_ure23
TypicalTemperat_ure23· 28d ago

The initial quote that you signed up for might not have done the full underwriting check yet. Once they do that, your rate could go back up tp where it should be. In addition, make sure all the coverages, drivers and everything else are exactly the same.

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Sfgate72
Sfgate72· 27d ago

There is progressive close to the $375, so it's not that far off

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Dull_Invesrigator808
Dull_Invesrigator808· 28d ago

I see this sometimes with progressive, something about their rate smoothing feature can sometimes lead to rewrite saving 30%. It's incredibly annoying to not have confidence that the carrier will honor its same terms for a rewrite but that's what you get with the cheap carrier...

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FuzzyFox8372
FuzzyFox8372· 27d ago

a lot of these companies are literally committing major crimes in other business areas such as IUL, whole life, or worse, with wholly-owned subsidiaries, etc. you should have zero confidence. the whole thing is designed to trick people.

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PinkOwl852
PinkOwl852· 27d ago

This happened to me when I had progressive. I called to complain about the rate, threatening to switch to another carrier. They did the rewrite and it came back with a competitive price. I switched anyway, this made me feel like there were just taking advantage of me.

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Free_Storm942
Free_Storm942· 28d ago

Read the fine print on the quote - you might get a $600+ bill in the next 30 days.

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DarkPanda_282
DarkPanda_282· 28d ago

You may be under a new rating plan. If that is the case, your rate may not go up like many have mentioned. However, there are quite a few contract differences in the new plan that may come to bite you in the future. Good luck to you!

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Brave_Penguin
Brave_Penguin· 27d ago

Well I guess celebrate now but people are trying to tell you they may catch on and not renew you. It's not uncommon for insurance companies after underwriting to make changes

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SpringtroNic315
SpringtroNic315· 27d ago

That $640 would be cheap in Philly, lol. I'm at $1359 per 6 months with Progressive, full coverage, full tort, nearly maxed limits. Clean record

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AlternAtive_Dot-34
AlternAtive_Dot-34· 27d ago

Two cars, comprehensive, but high $2500 deductible

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km39_5
km39_5· 27d ago

I highly doubt this will work. You're best off jumping around to different companies.

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Coalr_ober25
Coalr_ober25· 27d ago

Some insurance co's default payment plan is lower for the first few months and then ramps up. Other's don't run your consumer report right away, and then jack up your rate once they finally do. Not sure if Geico is doing either, but either of those make more sense to me than...

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GreenEagle123
GreenEagle123· 27d ago

The companies I worked for had different rate plans that once you were in, you were grandfathered in for better or worse. When we started using consumer reports, when we started offering telematic devices, they only were available under the newer plan to new customers. Whe...

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BigBlacKsmi_th5196
BigBlacKsmi_th5196· 27d ago

Is that $640 for a year or for 6 months?

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HappyShadow140
HappyShadow140· 27d ago

Did the same exact get thing to me. I ended finding an agent and got a cheaper premium with same coverage and smaller deductible with Mercury

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BearSwift54
BearSwift54· 27d ago

Same thing happened with me. I switched away.

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zzil_l9
zzil_l9· 27d ago

Did the same with progressive. Literally cancelled my old policy after resigning up with them and saved $400. You think they would catch this…

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Traffodi_l59
Traffodi_l59· 28d ago

Geico is a bad actor IMO. Had me at 10k a year - two cars, two drivers, no tickets, one fender bender with no lawsuit, no settlement, no injuries to either side & they said I had accident forgiveness anyway. I asked several times to lower my rate & they said nope, yo...

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Sfgate72
Sfgate72· 27d ago

Alright, couple of things: 1. The majority of carriers allow this for a variety of reasons and there is nothing wrong with it. 2. the reason that your rate is so low on the outset is because most carriers you can buy direct don't pull reports (CLUE/MVR) until after because th...

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Free-Eagle306
Free-Eagle306· 27d ago

Have you tried a new carrier or getting an independent agent to shop for you?

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sPazticpat
sPazticpat· 28d ago

This is actually a known pattern with a lot of insurers called "price optimization" and it's been banned in some states but not all. They model how likely you are to shop around and raise rates accordingly. Long-term loyal customers are ironically often the most overcharged be...

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DASFUN_POLICe
DASFUN_POLICe· 27d ago

Usually they have a waiting period to become a “new” client again.

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tiNylittl_egnat
tiNylittl_egnat· 27d ago

Shop everything, every renewal, always.

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insocKniac
insocKniac· 27d ago

I was paying almost 700 a month for three cars a while ago. I got tired of watching money disappear, so I switched. After switching, it came down to 400 a month. I checked back with my first insurance carrier, and suddenly they were able to get me back for 250 a month.

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Free-Eagle306
Free-Eagle306· 27d ago

Same, just call and question the increase. Then ask them to run a new policy to compare.

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zzil_l6
zzil_l6· 27d ago

Geico nickel and dimed us with rates rising a bit every six months thinking we wouldn’t leave. Now we’re very happy with Mercury and saved a bunch of money.

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Zzill9
Zzill9· 28d ago

Many of these companies set up pools to offer competitive rates than as the policies age and claims increase they close the pool to new entrants. Claims and by extension premiums continue to rise more and more people leave. Rinse repeat If your in a new pool nothing may happen

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JollyDog654
JollyDog654· 27d ago

I do this all the time with progressive. It's such s ways of time. Exact same coverage but I have to cancel my policy and sign up again. So stupid

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Exciting_Will6255
Exciting_Will6255· 28d ago

Wow, that's a pretty wild ride with Geico! It's like they think we're all just cruising on autopilot with our renewals. I had a similar experience - my rates kept climbing like they were trying to reach orbit. I did some research and found that sometimes starting fresh with a ...

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