Geico Corporation Complaint - My Rate Quadrupled for One Moving Violation
POMPANO BEACH, FLORIDA -- I was out of the country for a month and when I returned in October 2003, I opend a letter from Geico. It was dated August 7, 2003 and said that they were cancelling my insurance effective Sept 25, 2003. The reason was that Geico had, without my knowledge or permission, added a 2nd driver to my policy. Here is how it happened.
In the beginning of June 2003, I was going to relocate to California and was planning on shipping my Porsche Carrera out there. The potential plan was also to allow my friend, the person whose home I would be staying, to drive my Porsche vehicle along with myself. So, I called Geico to get an ESTIMATE on roughly how much this would cost. Let me repeat, this was an estimate. The customer rep told me that in order to provide me with an accurate quote, she would need my friend's driver license number. So, with my friend's permission, I gave her all the information she needed, including his driver license number. She gave me a quote of $1005 for a six month premium to have the car located in Northern California at my friend's San Francisco address with my friend and myself as drivers. This was not bad as my current premium was $800, so $200 more for another driver. I thanked her for the quote and told her that if I decided to bring the vehicle out to California I would call back to put my friend on my policy.
I never went to California. But in the ensuing two month, Geico assumed that my friend was living at my residence in Florida and driving my vehicle (otherwise, the policy would have been re-rated to $1005 and my insurance was never re-rated). My friend does not live in Florida. Heís never driven any of my vehicles. He hasnít even been in Florida in the past year. I never went to California. The vehicles never left California. This was all a huge error on Geicoís part. The problem arises when I find out that my friend has had license suspensions, speeding tickets, failure to carry registration. I on the other hand, had one speeding ticket and a failure to use safety belt.
I explained this error of adding my friend to my policy to numerous deaf ears at Geico. They had me jump thru hoops to prove that my friend never resided in Florids and fax over his California registration, driver license and insurance binder, which I did.
After 6 phone calls and hours of explaining, Geico finally re-instated my insurance but as a result of my friend being incorrectly added to my policy and his poor driver history, they transferred me from the preferred Geico company to an affiliate Geico company resulting my six-month premium going from $800 to $2800 !!!! They tell me my friend's driver history had nothing to do with it but I find it difficult to believe that my one ticket and one failure to use a safety belt resulted in my insurance premium quadrupling.
So buyer beware. Don't call up any insurance company, especially Gieco, for a quote on adding a friend otherwise they will automatically add that friend to your insurance without your knowledge or permission. And if that person has a poor driver history, you will be screwed. Gei-Ranteed!
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