Geico Insurance

[jtupper]

The price of an insurance policy can differ greatly because each insurance company decides how much risk they are willing to take. Some companies feel that they do not need to write those types of policies to make a profit and stay in business. Many smaller insurance companies will not even cover sports cars for this reason.

Insurance companies must also buy insurance for themselves in the event that there is a natural disaster or even a hail storm. The reinsurance kicks in at a predetermined dollar value. So not only are you purchasing insurance for your car and house, you are also purchasing insurance for your insurance. If there have been a lot of hurricanes, for example, like there have been in the last two years, the price for reinsurance coverage increases. Consequently, everyone ends up paying more for insurance even if you were not involved in the natural disaster.

 

[Chuck 98 RT/10]

If there have been a lot of hurricanes, for example, like there have been in the last two years, the price for reinsurance coverage increases.

That brings us back to my original observation, if we don't have any hurricanes for the next two years will the insurance rates go back down?

 

[Gus Strakes]

I have 5 cars (plus the home), and I have used Nationwide for the last 20+ years. This year my premium went to $4100 for just the two Vipers, which was almost double from past years. I went on line and got an Internet quote from Geico for less than half for both Vipers for the same coverage as I was getting from Nationwide. Naturally, I switched, and if this works out, I will be moving the 3 daily drivers, and the home over in the Spring.

 

[Finally got it !]

If there have been a lot of hurricanes, for example, like there have been in the last two years, the price for reinsurance coverage increases.

That brings us back to my original observation, if we don't have any hurricanes for the next two years will the insurance rates go back down?

No. My wife is in house counsel for one of the largest insurance companies in the world. She advices that they would just take the reserves from property damage and transfer them over to things like Toxic tort. So we as the consumer would always get screwed......

 

[AviP]

97 Viper (full coverage) + 01 PT cruiser (liability) = $1700 with Progressive. Geico was charging $2250 for the same. I'm in NJ and my driving profile has 2 moving violations (no points) over the past 3 years.

Geico looks back for 5 years of driving history while Progressive only cares about the past 3 years. YMMV.

 

[CitySnake]

Avi:

How do you get moving violations without points? Is that some NJ thing?

 

[malcoll]

They're betting the two drivers will somehow try to drive all 5 cars at the same time. We know how dangerous that can be.

Insurance is such a scam

So true. It sure helps them out when the state makes it a law too.

Yep... that's why car insurance should be state controlled... the rates should be the same for ALL insurance companies for basic coverage, and the companies can compete for extended coverages. Won't happen though. The insurance companies give waaaay too much money to the politicians.

Yeah... we know how things are SO much better with government involvement. Oh yeah.. and insurance is a scam... gee I wonder how many mortgages would get booked if there were no insurance companies out there to take the risk of losing that house out of the equation... or wow... how many car loans would be made without insurance companies taking the risk of theft, fire, collision.....

Yeah insurance is a scam.. too bad our economy would go bust if it weren't for insurance companies.

Any other pearls of wisdom you want to share?