We’ve heard of retention offers on credit cards, and people often discuss similar types of offers for rate reductions on cable and internet prices. I recently had an interesting experience with my auto insurance company offering me a $65 discount in an attempt to keep me as a customer…
After being a GEICO auto insurance customer for many years, they recently hit me with a huge price increase from around $650 for 6-months to $1,500 for 6-months. Insane!
Interestingly, when I called a few brokers, each one only worked with select insurance companies. It took a good bit of legwork for me to verify what my options were and to compare pricing. I learned about a regional provider in my area from a Reddit thread, and ended up using that company.
I priced around and found another provider with rates that were around $1,150 for an entire year. So in the end, instead of getting a price increase, my annual cost is actually going down premium. Thanks GEICO for encouraging me to shop around.
GEICO prompts us to call in to cancel. After waiting on hold for over an hour, I learned that it’s possible to cancel via chat as well. That went quicker.
The agent offered to check my price increase and see what she could do. After a few minutes, she ‘found’ a $65 discount which could be applied to my policy.
It was too little and too late, and I ended up cancelling my GEICO policy over the chat. But I found it interesting that there is a small bit of negotiating room on auto insurance where they can apply some sort of discount in order to retain a customer.
I also learned how important it is to shop around with auto insurance. From what I’ve heard, the companies will usually give competitive rates at signup, and then they’ll push price increases at the insurance renewals. So we just have to basically keep switching around every few years to keep the rates reasonable.
(Tangentially, another tidbit I learned in the process is that when the insurer says your coverage is from June 10 – December 10, it actually means that the new insurance expires at 12:01am on December 10th. And so you’ll need to start the new coverage on December 10th, not on December 11th as I had initially assumed.)
Thanks. Let us know if you see a claim option go live online
Geico price hiked me like crazy earlier this year. I only carry liability insurance and have a clean driving record. I shopped around and my new rate is lower than Geico’s rate even before the price hike. Geico most likely optimized their rates to maximize profit banking on that many customers will not switch.
YMMV, I just shopped for car insurance last week and Progressive came in $1200 a year below my Liberty Mutual policy, for same coverage. About 40% savings. Screw you, Emu! Hello Flo!:-)
Well done. lol
Chuck, could you provide the thread about regional providers on reddit?
In addition to the usual pricing factors, insurance companies use online data about you to determine the price you pay: www thezebra com/resources/research/digital-footprint-car-insurance/. Plus, besides the credit reporting agencies, there are others that collect and report consumer data, for example, for insurance purposes: www consumerfinance gov/consumer-tools/credit-reports-and-scores/consumer-reporting-companies/. Of course, many cars collect and report data about your habits, too.
My insurance company uses an insurance “score” (like a credit report) from Lexis-Nexis”. Unfortunately, it is always out of date and I call them every year and say “Hey, can you pull the latest score for me”, and the old crap falls off and my premiums go down. It’s a bunch of crap anyway because if I pay a bill late or if there is some BS on my credit report, that does not make me a bad driver, but in their eyes it does. Such BS.
Don’t overwork yourself shopping around much anymore !!
I have done that past 20 yrs for all aspects of my finances and hardly you come across a frugal person like me,
The more time passes the more I am reaching the point of time as what Geroge Carlin used to say: ” What matters most have been cut to 2 meaningless choices for the people in this country, Soon we will have only 2 car insurance companies for the whole country !! ”
Same as the 2 meaningless choices being provided to us as for the presidential election year after year but that is an illusion of choice !!
All the insurance industry soon will be owned and run by just one or two major parent companies that will give you an illusion of choice by different fake brand names !!
If it isnt already.
Anyone paying for more than liability is throwing money in the garbage can.
Well unfortunately most banks and financing companies require full coverage. If you paid off your car then you are free and clear to make that decision.
Haven’t seen a comment as ignorant as yours in a while. Someone hit and run my car in the middle of the night, and if I only have Liability coverage I would have been out of $10,000 to fix my car.
“ if I only have Liability coverage I would have been out of $10,000 to fix my car.”
Yeah and what were the odds of that?
Option 1: Pay big insurance premiums for comprehensive coverage.
Option 2: Save and invest the money you’d have spent on insurance premiums and use that to pay for car repairs as needed
What do you think lets you come out ahead most of the time?
Your argument is really flawed. It literally happened to
EE so what does it matter what the odds were before it happened?
You must be driving a 2007 Toyota Corolla LE
if you purposely writing this to get comments, here you go I’ll give you one. but if this is your total understanding of how car insurnace works you are such a naive individual ,
since you at least can get a comprhensive coverage for about $20 every six months or $3 a month to cover yourself even if you do not want to get the collision which is pricy
Yeah insurance is to protect assets, if you get into a big accident and don’t have enough guess who has better lawyers and who goes bankrupt because they were cheap to save a few bucks.
I have Costco Auto insurance. I found it to be the best and most affordable auto insurance if you can get it. It’s available only for Costco members.
This depends on your state. In CA and FL, Costco does not sell its own insurance.
Would have been great to switch to this. Not available in FL.
They only stop offering new insurances to FL people, but still offer to renew for current policy holder. I have been with them for years. I renewed last month and rates only increase $50 for the next 6 months.
My auto insurance through Costco renewal is coming up in January. They increased it from $1000 for 6 months to $1600. Still shopping around in WA.
My Costco renewal is actually lower than before, so I am quite happy with it.