Geico Corporation Informative - The cost of saving money...
MIDWEST, OKLAHOMA -- Dear Fellow Consumer,
Thanks to my3cents dot com, we have this wonderful place for expression, I often wonder if the financially voracious social clubs we call banks and insurance companies actually listen and respond to public concerns.
For me, it's not about the money. We make more, we spend more... and we take none when we go! So where did our society go wrong, who decided we "must be insured"? And are we better now then we were before?
My past experience with Geico was rather benign. I received insurance coverage from them for two years without incident. I even insured my teenage daughter at a reasonable rate.
Without going into great details, which seems to be what the future of insurance is all about, I will keep this simple. I let my insurance laps. I was driving a company pickup that was covered on a seperate policy. Later, after getting a new (used) personal vehicle, I contacted Geico for insurance. Wow! my premium about doubled. The used pickup is a little smaller, less power and I have a clean driving record.
Then the notice came... "FAIR CREDIT REPORTING ACT NOTICE" I couldn't believe what I was reading. I was wrong, it is about the money. It turns out insurance monsters are now evaluating us from our credit score.
In a 2000 report, James Monaghan, ACAS, MAAA, conducted a study of 170,000 drivers and came to the conclusion that, individuals with bad credit and clean driving records actually caused 27% more in claim losses per premium dollar than people with good credit and poor driving records.
Okay, now where do I fit into these statistics? I'm 40+, I have no tickets and no accidents in the past 6 years. I drive less then 5 miles round trip to work and travel only once a year. According to Mr. Monaghan's study, I need to get busy crashing and making claims! I'm lagging about 27% behind the national average.
How did man/women make it thus far without insurance? Oh, for the love of money.
ps. you can't take it with you...