Question
How can Geico be so inexpensive?
My husband and I just got married and we were looking into combining insurances. He currently is paying 855 every 6 months with his and to add me and my car would be 470 dollars more. He has one of those insurance agencies that is supposed to shop around and find the best price. I have Geico and am currently paying 283 every 6 months and to add him and his car would cost me an additional 322 dollars every 6 months. I've had 2 claims at Geico and they took care of everything perfectly, much better than the one claim I filed with State Farm 7 years ago. I don't understand how they can stay in business charging less than half of other companies! How does this work?
6 months ago - 5 answers
Best Answer
Chosen by Asker
Dealing direct with the insured saves any insurance company 20%+ in commission and admin costs than when an an 'agency' is involved. Agents might well be worth using, but they don't work for free you know..... take a guess at who ultimately pays their bill. Don't fall for all that 'we don't charge' nonsense, they get paid by the insurance company, which builds that cost into your premium.
6 months ago
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Other Answers
Lol, I have Geico too! And, they have been great and so friendly. I check once a year and call all the other companies and they always give me crazy high quotes. I would never switch! I think that a lot of other companies just don't know who you are and how reliable you are so they charge more in hopes that they can snag you. Think about it though, millions of people can go years and years and never even need their insurance to fix a thing! I haven't had any accidents or little fender benders in 5 years, so all the money I've paid, they have! Simple!
by cpcp- 6 months ago
OK, that one agency, does NOT represent every single insurance company in your state, I promise. Off the top of my head, without seeing either of your policies, I'd say you have "minimum coverage" bare bones, what you need to be legal on the road. He probably has much higher coverage limits than you do. One of the ways Geico keeps their costs low, is by targeting "minimum coverage" clients. When it happens that there's a bad accident, there isn't any work to it - Geico can just write the check for the policy limit, and walk away. Then YOU have to pay the difference between your minimum limit, and all the damage you actually caused. Great for Geico - really stinky for you.
by mbrcatz- 6 months ago
maybe help you insurancez ...
by dotrar- 6 months ago
GEICO is a carrier that primarily writes policies by phone, Internet or mail order instead of with local agents' offices (although there are a few GEIGO agencies in large cities). This cuts down on overhead (rent, agents wages, etc.) The downside is that contacting such a carrier via the toll free number is that the chances of speaking to the same person more than once is slender (which kind of depersonalizes the service you'd get). I love the gecko in the GEICO ads as well as the duck in the AFLAC ads. Although I know someone who has GEICO and is satisfied with them, I found my best rate and service with State Farm where I have a local agent as well as the Web site. In addition, married couples tend to pay less than singles due for their auto coverage. I'd let his broker check around for rates - and get a second opinion from your GEICO representative Hope this is helpful!
by smartconsumer- 6 months ago