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Geico Corporation Complaint - Beware of the GEICO auto insurance trap!
Complaint
We originally signed up with GEICO for auto insurance six years ago because their policy price was the most reasonable. With each year's renewal, however, the price escalated until we felt it was ridiculous. I called the company that we use for our home owner's insurance and asked for a quote. I was shocked when the agent called me back to tell me that he couldn't give us a quote because our CLUE report score was so bad. I didn't know what a CLUE report was, but I found out fast. A company called Choice Point keeps a claim history on people that they release to insurance companies. The history may include any call made to an insurance company regarding loss, EVEN IF THE INSURANCE COMPANY DIDN'T HAVE TO PAY A DIME!
I called Geico and asked them to fax me a copy of the claims against us. Geico had reported four accidents against us that weren't our fault and for which they didn't pay any money--my car was hit in the rear twice and was hit while it was parked in a supermarket parking lot (fortunately, there was a witness); my husband's car was hit by someone who didn't have the right-of-way. Geico also reported a one-time emergency road service call against us (we paid for the service in our policy) and a one-time glass breakage against us (a small pit where the windshield was hit by a stone was repaired). With the exception of the glass breakage and the one-time emergency road service, Geico didn't pay any claims for us, yet GEICO REPORTED WHATEVER IT COULD TO PUT IN OUR CLUE REPORT TO RAISE OUR SCORE SO NO OTHER INSURANCE COMPANY WOULD WANT TO UNDERWRITE A POLICY ON US. When I called Geico to try to discuss the so-called "claims" against us, a snippy woman told me that they did not discuss these "claims," that they were for the use of the insurance company only.
Insurance agents have to pay for CLUE reports, so what most of them do is call to get people's scores. If the score is high, they don't bother getting the report; they don't want to insure you. After I found out what Geico had done, I called our insurance agent back and told him that I'd pay for the CLUE report. I think he was embarrassed, so he got it and called me back later with a quote--almost $500 less than what Geico was charging us.
Someone from Geico called to remind us to send our payment in for renewal. When I said we weren't using Geico anymore, the woman offered to give us a better rate by removing some of our "accidents." If nothing else, the people at Geico have real gall.
I wouldn't be surprised if some other insurance companies have the same dirty practices as Geico. We had an expensive, aggravating lesson.
I called Geico and asked them to fax me a copy of the claims against us. Geico had reported four accidents against us that weren't our fault and for which they didn't pay any money--my car was hit in the rear twice and was hit while it was parked in a supermarket parking lot (fortunately, there was a witness); my husband's car was hit by someone who didn't have the right-of-way. Geico also reported a one-time emergency road service call against us (we paid for the service in our policy) and a one-time glass breakage against us (a small pit where the windshield was hit by a stone was repaired). With the exception of the glass breakage and the one-time emergency road service, Geico didn't pay any claims for us, yet GEICO REPORTED WHATEVER IT COULD TO PUT IN OUR CLUE REPORT TO RAISE OUR SCORE SO NO OTHER INSURANCE COMPANY WOULD WANT TO UNDERWRITE A POLICY ON US. When I called Geico to try to discuss the so-called "claims" against us, a snippy woman told me that they did not discuss these "claims," that they were for the use of the insurance company only.
Insurance agents have to pay for CLUE reports, so what most of them do is call to get people's scores. If the score is high, they don't bother getting the report; they don't want to insure you. After I found out what Geico had done, I called our insurance agent back and told him that I'd pay for the CLUE report. I think he was embarrassed, so he got it and called me back later with a quote--almost $500 less than what Geico was charging us.
Someone from Geico called to remind us to send our payment in for renewal. When I said we weren't using Geico anymore, the woman offered to give us a better rate by removing some of our "accidents." If nothing else, the people at Geico have real gall.
I wouldn't be surprised if some other insurance companies have the same dirty practices as Geico. We had an expensive, aggravating lesson.
Comments:
Posted by GRANNYLKM on 2006-11-14:
Very interesting! Never heard of CLUE reports before!
Posted by glc on 2006-11-14:
Garden: EVERY carrier uses CLUE reports..and all claims are reported, negligible or not.
Posted by DreyNikHaze on 2007-01-06:
I don't like Geico, I never have, they screwed my husband and I over very badly and I will never go back to them, and make sure that my friends and family never sign up with them. Great letter by the way!!
Posted by truckin21 on 2007-01-28:
When I signed up with Geico 2yrs ago I had a clean driving record--no tickets, no accidents, no claims period. My premiums were always paid in full when they were due (every six months). When I received my recent renewal I noticed it had increased. When I called and asked why the increase, I was told: "Even though you have had no claims our claims for your area has increased, therefore we must increase the premiums." Fine, increase it fon the ones that actually COST you money, don't increase the ones that SAVE you money. She said she was sorry, there was nothing she could do. I told her: "Well there is something I can do. Geico will no longer be allowed to insure my car." I immediatley called AIG. I now have a policy that INCLUDES free road side service, Free 100% glass replacement, plus a Free transportation Continuance that pays me 30.00 @day up to a maximum of $900.00 if an accident delays me for any reason. All this for $150.00 LESS MONEY. Do your self a favor; Call AIG, or go to their web site: AIG Auto and get a quote, I garuantee you will save money. As for this CLUE thing, I have been dealing with insurance companies for well over 50 yrs. and this is the first time I have ever heard of such a thing.
Posted by Bababooey on 2007-01-29:
I was a longtime customer of AIG until my rates went up dramatically because I moved to a more urbanized area. Out of curiousity, I called GEICO for a quote, and I discovered that I could save almost $400 by switching from AIG to GEICO. Needless to say, I switched, and after 4 years with GEICO, I haven't had any problems (but I haven't had any tickets or accidents either).
Posted by Aember24 on 2007-02-15:
CLUE has been around for a long time and is used by most if not all insurnace companies. As far as the increase in territories regardless of claims history....that increase is taken by all insurance companies, not just one. And yes sadly it affects everyone. Even good drivers. This isnt done to rip you off or so the insurance companies can be bullies. But when there is a decrease in territory, no one complains? You guys have to realize that some things arent done to rip you off or because insurance companies are big meanies? If you really think there is an issue contact the insurance commisioner in your state and report it. That is the quickest and best way to resolve problems when it comes to insurance.
Posted by geicoreallysucks on 2007-09-04:
Please post your comments about the CLUE report on www.GeicoBlows.com. I am sure the people there would like hear about it too. Thanks.
Posted by jktshff1 on 2007-09-04:
Good post, thanks for the information.
Posted by voice1 on 2008-02-09:
It never ceases to amaze me how uninformed the general public is about insurance..... something we all are forced to buy.
All insurance companies run clue reports and most reputable companies report all claims (negligent or non-negligent). How else can an insurance company determine what kind of risk someone will be without this info? It isn't an exact science but it is the best info available.
Would you go into business telling someone for a small fee you are gonna promise to fix their property and any property they damage and pay for any injuries they cause without knowing something about their driving history and the driving history of anyone who drives their car? If you would ... good luck!
Would you charge an 18 year old with multiple accidents and tickets who lives in downtown Miami the same rate that you charge a 45 year old with a perfect record who lives 15 miles from the nearest small town?
Don't think just because all your accidents are not your fault that they aren't considered. In the world of insurance fraud (which is a big reason your rates are so high) most of those claims look to be not at fault at first glance. Multiple not at fault claims will make an insurance company raise an eyebrow sometimes faster than one at fault claim.
There are lots of people out there who need to get a "clue"... no pun intended.
All insurance companies run clue reports and most reputable companies report all claims (negligent or non-negligent). How else can an insurance company determine what kind of risk someone will be without this info? It isn't an exact science but it is the best info available.
Would you go into business telling someone for a small fee you are gonna promise to fix their property and any property they damage and pay for any injuries they cause without knowing something about their driving history and the driving history of anyone who drives their car? If you would ... good luck!
Would you charge an 18 year old with multiple accidents and tickets who lives in downtown Miami the same rate that you charge a 45 year old with a perfect record who lives 15 miles from the nearest small town?
Don't think just because all your accidents are not your fault that they aren't considered. In the world of insurance fraud (which is a big reason your rates are so high) most of those claims look to be not at fault at first glance. Multiple not at fault claims will make an insurance company raise an eyebrow sometimes faster than one at fault claim.
There are lots of people out there who need to get a "clue"... no pun intended.
Posted by garden on 2008-02-10:
What voice1 needs to do is re-read the original post that I wrote on Geico. Geico added every call that we made to them--CALLS FOR WHICH THERE WERE NO CLAIMS--to our Clue report, making it look like we had made a lot of claims, which we didn't. It's their practice, and it's outrageous! I said it before and I'll say it again--beware of Geico. Also, no matter what company you use for auto insurance, make sure you find out EXACTLY what they report on the Clue Report. If you don't, it could cost you plenty. Again, I hope this helps others.
Posted by spdwoody on 2010-09-28:
Great Post !!! Similar happened here in Mass. I had Progressive for 1 year. Renewal time the cost goes up 400 bucks- Good by Progressive
Now I just recently got Geico at what I was paying progressive.
So when thats up ther gonna raise my rates listening to you folks, So Ill get ready to cancel
Now I just recently got Geico at what I was paying progressive.
So when thats up ther gonna raise my rates listening to you folks, So Ill get ready to cancel
Posted by Tracy CA on 2012-03-28:
Get a C.L.U.E. people. You had better find out what is in that report... Mine had five(5) claims listed out of 8 listed that DID NOT belong to me.
Dollarwise the 5 claims were for over $40,000 which I am sure MetLife incorporated into my premium payment. Get a C.L.U.E. people.
Just google LexisNexis to obtain one.
Dollarwise the 5 claims were for over $40,000 which I am sure MetLife incorporated into my premium payment. Get a C.L.U.E. people.
Just google LexisNexis to obtain one.
Posted by Ann on 2013-05-04:
GEICO is the best. I had another company for nearly 20 years, but the rates kept going higher and higher. I made the switch to GEICO and pay $600 less per year than I was paying with the other company. The customer service and claims service is unbeatable and they are open 24/7 and even on holidays. I will never switch from GEICO. As someone who has been using auto insurance for 45 years, GEICO is fantastic. Give them a call and find out for yourself.
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