- Report: #76776
Complaint Review: Geico Direct Insurance - Washington District of Columbia
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Geico Direct Insurance
One Geico Plaza Washington, 20076 District of Columbia, U.S.A.
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Geico Direct Insurance Will Insure Others at My Expense Whether I like it or Not!! Washington District of Columbia
*Consumer Comment: Your 10 roomates, Not to say it's right, but that's the way it goes.
*Consumer Comment: Your 10 roomates, Not to say it's right, but that's the way it goes.
*Consumer Comment: Your 10 roomates, Not to say it's right, but that's the way it goes.
*Consumer Comment: Don't Sue Quite Yet
*UPDATE Employee: Getting the right rate for the right risk...
*Consumer Comment: Geico does indeed rip you off
I have been a long time customer of Geico so when my eighteen year son received his driver's license, the first company I thought about to obtain an auto insurance quote was Geico. On December 24, 2003, I contacted Geico and requested a quote to insure my son's "beeter" a 1993 Ford Taurus. The rep I spoke to ask for my son's name, driver's license number and tag information. My son was at work at the time so I was unable to provide the driver's license information and the card he gave me for the registration was the wrong one.
I explained this to the rep and clearly stated that I am simply asking for a quote to get an idea what would be needed to insure the vehicle so that my son could drive it. Since I did not have all of the information that he requested, the conversation ended with the need for me to call back with the information. AT NO TIME AT ALL DID I REQUEST THAT MY SON BE ADDED TO MY POLICY OR THAT I WANTED A CHANGE TO MY CURRENT COVERAGE.
A few days after this phone call, I received an amendment to the renewal policy that Geico had sent about two weeks earlier. The renewal policy was to become effective February 1, 2004. To my utter amagement, the premium for the six month period jumped from $500+ to over $1200. When I contacted Geico to ask why my premium was increased, I was told that my son was added to my policy. I asked why and was told that any licensed driver residing in my household is automatically added to my policy.
I proceeded to obtain insurance from another company and called Geico on January 9, 2004 to request that my current policy be cancelled. You would not believe the nightmare that I encountered from the company that I had been doing business with for over ten years.
The rep told me that she would go ahead and cancel the renewal policy effective immediately and that I was entitled to credit on the current policy that was due to expired January 31, 2004 because I had paid up the policy in advance. She said my credit would be approximately $167. She then said wait a minute and continued to do what I assumed was further calculations. To my utter chagrin, she informed me that I owed Geico $127 despite having paid my account in full. The nightmare began when she tried to explain why, and despite two conversations with her which lasted over one hour, the matter was not clarified.
She informed me that the additional money that I owe was for them covering my son (who remind you is legally an adult) from December 24, 2003 to January 9, 2004, despite me not requesting such covering. This all happened because I contacted Geico to ask for a QUOTE. Geico never gave me the opportunity to shop around for the best rates as it took it upon itself to determine who I am liable to pay insurance premiums for.
At no time prior to my conversation with the rep on January 9, 2004 was I made aware that I was being billed additional premiums for the paid-up period that was to end January 31, 2003. I was never sent an amended policy or any invoice. I only learned of this when I called to cancel the policy.
THIS LED ME TO BELIVE THAT GEICO WAS INTENTIONALLY PUNISHING ME FOR CANCELLING THE RENEWAL POLICY BECAUSE THEY INCREASED MY INSURANCE PREMIUMS BY 250% WITHOUT MY KNOWLEDGE AND OR CONSENT!!!! I argued until I was out of breath but it was useless. The rep assured me that this was Geico's policy and that it was in my contract. I demanded to know where that appeared in my contact and she promised to provide me with that information. She called me back and said it was on page 4, paragraph A. I read the section she referred to and all it said, and I paraphrase, is that all members of my househould are covered under my current policy if he/she operates my vehicle (the one currently insured with Geico) with my permission/consent.
No where did this clause says that I gave Geico permission to add anyone to my policy without my express knowledge or consent and that liability for every member of my household is automatically imputed to me so long as he/she is a licensed driver, regardless of whether this person is a child or adult.
Imagine what would happen if I had ten (10) roommates who did not have their own auto insurance coverage. I asked for the FLORIDA STATUTE that gave them the right to do this and was told that she could not find the law but that Geico's policies were approved by the Florida Department of Insurance.
Needless to say, I am extremely frustrated and angry at the steps that were taken by Geico. When I asked to speak to a superior the rep told me no one else was available to deal with the matter. I asked her if she didn't think what was done to me was wrong and she said "she had a job to keep and bills to pay and she is not willing to risk her job or her insurance license to determine if Geico's policies were right or wrong.
I need help with this situation because I believe that my legal rights were seriously infringed upon and that I am not the only one. I am sure that I can bring some type of legal action against Geico but I don't think it will bring much weight unless it is a class action. I need this publicized to see if anyone else has been victimized in a similar manner. I will also be filing a report with the State's Department of Consumer Affairs and the Department of Insurance and any other agency or person that will listen.
I am a veteran, I served my country, am an honest tax paying citizen and will not take being ripped off laying down.
Marcia
Sanford, Florida
U.S.A.
Click here to read other Rip Off Reports on GEICO Insurance
I explained this to the rep and clearly stated that I am simply asking for a quote to get an idea what would be needed to insure the vehicle so that my son could drive it. Since I did not have all of the information that he requested, the conversation ended with the need for me to call back with the information. AT NO TIME AT ALL DID I REQUEST THAT MY SON BE ADDED TO MY POLICY OR THAT I WANTED A CHANGE TO MY CURRENT COVERAGE.
A few days after this phone call, I received an amendment to the renewal policy that Geico had sent about two weeks earlier. The renewal policy was to become effective February 1, 2004. To my utter amagement, the premium for the six month period jumped from $500+ to over $1200. When I contacted Geico to ask why my premium was increased, I was told that my son was added to my policy. I asked why and was told that any licensed driver residing in my household is automatically added to my policy.
I proceeded to obtain insurance from another company and called Geico on January 9, 2004 to request that my current policy be cancelled. You would not believe the nightmare that I encountered from the company that I had been doing business with for over ten years.
The rep told me that she would go ahead and cancel the renewal policy effective immediately and that I was entitled to credit on the current policy that was due to expired January 31, 2004 because I had paid up the policy in advance. She said my credit would be approximately $167. She then said wait a minute and continued to do what I assumed was further calculations. To my utter chagrin, she informed me that I owed Geico $127 despite having paid my account in full. The nightmare began when she tried to explain why, and despite two conversations with her which lasted over one hour, the matter was not clarified.
She informed me that the additional money that I owe was for them covering my son (who remind you is legally an adult) from December 24, 2003 to January 9, 2004, despite me not requesting such covering. This all happened because I contacted Geico to ask for a QUOTE. Geico never gave me the opportunity to shop around for the best rates as it took it upon itself to determine who I am liable to pay insurance premiums for.
At no time prior to my conversation with the rep on January 9, 2004 was I made aware that I was being billed additional premiums for the paid-up period that was to end January 31, 2003. I was never sent an amended policy or any invoice. I only learned of this when I called to cancel the policy.
THIS LED ME TO BELIVE THAT GEICO WAS INTENTIONALLY PUNISHING ME FOR CANCELLING THE RENEWAL POLICY BECAUSE THEY INCREASED MY INSURANCE PREMIUMS BY 250% WITHOUT MY KNOWLEDGE AND OR CONSENT!!!! I argued until I was out of breath but it was useless. The rep assured me that this was Geico's policy and that it was in my contract. I demanded to know where that appeared in my contact and she promised to provide me with that information. She called me back and said it was on page 4, paragraph A. I read the section she referred to and all it said, and I paraphrase, is that all members of my househould are covered under my current policy if he/she operates my vehicle (the one currently insured with Geico) with my permission/consent.
No where did this clause says that I gave Geico permission to add anyone to my policy without my express knowledge or consent and that liability for every member of my household is automatically imputed to me so long as he/she is a licensed driver, regardless of whether this person is a child or adult.
Imagine what would happen if I had ten (10) roommates who did not have their own auto insurance coverage. I asked for the FLORIDA STATUTE that gave them the right to do this and was told that she could not find the law but that Geico's policies were approved by the Florida Department of Insurance.
Needless to say, I am extremely frustrated and angry at the steps that were taken by Geico. When I asked to speak to a superior the rep told me no one else was available to deal with the matter. I asked her if she didn't think what was done to me was wrong and she said "she had a job to keep and bills to pay and she is not willing to risk her job or her insurance license to determine if Geico's policies were right or wrong.
I need help with this situation because I believe that my legal rights were seriously infringed upon and that I am not the only one. I am sure that I can bring some type of legal action against Geico but I don't think it will bring much weight unless it is a class action. I need this publicized to see if anyone else has been victimized in a similar manner. I will also be filing a report with the State's Department of Consumer Affairs and the Department of Insurance and any other agency or person that will listen.
I am a veteran, I served my country, am an honest tax paying citizen and will not take being ripped off laying down.
Marcia
Sanford, Florida
U.S.A.
Click here to read other Rip Off Reports on GEICO Insurance
6 Updates & Rebuttals
Anonymous
81623,Colorado,
Geico does indeed rip you off
#2Consumer Comment
Tue, August 06, 2013
Similar to your story, they added my son without my permission after I requested a "quote." He then obtained a vehicle and insurance. I followed all of their requests and sent in proof of insurance for my son multiple times, yet they still charged me and refused to remove it and is sending it to collections for $179. Now I have to take them to court because I have all the documentation proving everything was sent to them and that my son did indeed have his own coverage. They were unwilling to do anything for me after I had been with them for over 12 years and NEVER had a claim. I since cancelled my policy and switched to State Farm because of their unsavory business practices. I will not pay this bill and I will fight this at the highest level possible.
Chris
Tampa,Florida,
U.S.A.
Getting the right rate for the right risk...
#3UPDATE Employee
Fri, February 27, 2004
Sorry to say that your premium went up so much. I work for Geico. I do not feel that they did anything out of the ordinary. Let me ask you this: If your son asks to borrow your car to go to the store, or pick up his hot date for the weekend, is there a possibility that he will drive it? Of course you might let him. And your theory on 10 roommates is pretty uncommon. But if that was really the case we wouldn't really care. It's only family members, especially children that ALL insurance companies have what's called very bad loss experiences. KIDS DRIVE THEIR PARENTS CARS!!! Plain and simple. The insurance industry compiles all these accidents and payouts and finds the common denominators. Teenage kids even supposedly "excluded" get into accidents and drive at some point their parents cars. Lets say you have yournice 50k sports car. Corvette, mercedes, whatever... Your son got his license a few months ago but you never really told your insurance company. One day little Johnny has his winter formal and asks to borrow the nice car to impress his friends and you decide to let him. Because of course he's a "responsible kid" with "good grades" and a "good head on his shoulders". (BTW, spare me the BS, parents are not the best judges of their children's character, something of a conflict of interest you could say.) He takes it for a spin and in attempt to impress his date and his friends in the back seat, drives a bit carelessly and losses control and hits another car. Between his car, the other car and everyones medical bills how much do you think the bill is going to be? 100k or more for two totalled cars and medical liability for the other driver. Possiblely more if the other driver gets a good lawyer. And who is going to pay for it? Yep, that's right the Insurance company Geico. We can't deny the claim because you never told us about the terrible risk you have in your household. We don't have a choice. Geico just got RIPPED OFF. And we take it up the whazoo, and we know that there will always be cases of this, and risks that we cannot see, and people that will get away with things. But we will take action against things we can see and can control. And the question I ask to you is: how many times had your son driven your car to practice? to the store? around town? before you bought him the beater. Research shows: more than you you'd care to admit. Grow up and take a look at the bigger picture. You're not the only one who has to pay for these high rates of insurance. Next time you see your bill, think how many policy holders it takes to pay for a $100k claim that Geico never got the right premium for... -Chris p.s. and why do I mention this scenario as an example of 100k? Because it happened last week at work when the father called in to report the claim, and you're darn right we raised his premium and prorated it as of the accident. What do you expect?
Chris
Virginia Beach,Virginia,
U.S.A.
Don't Sue Quite Yet
#4Consumer Comment
Thu, January 29, 2004
This is not only common, but it IS THE INSURANCE LAW. This is the scenario: your son drives his own vehicle but lives in your home. He runs in to someone and hurts them seriously. He also finds out that he forgot to pay his insurance and it has been canceled (OR he does not have enough coverage for this injured person). That injured party he hit and his/her lawyer will sue YOUR POLICY whether you like it or not because he is a member of your household. Its called a "Family Auto Policy". Your company was simply getting the "right rate for the right risk involved" basically. EVERY single company does this. There are a few exceptions in certain states and in other states you can sign a waiver to release your liability from that driver. You can actually get a copy of the state law or statute from your state's Insurance Commisioner. The state insurance Commisioner also accepts complaints on insurance companies if you still think it was handled incorrectly, but he may tell you the same thing.
Richard
Chalmette,Louisiana,
U.S.A.
Your 10 roomates, Not to say it's right, but that's the way it goes.
#5Consumer Comment
Sun, January 11, 2004
What Geico did is actually very common in the insurance industry. The company assumes that your son will at some point drive your car to the store, etc. I don't think this is unique to Florida. As far as your scenario with the 10 roomates, Geico would in fact raise your premiums in that case also, assumng that one of the roomates would eventually borrow your car. Not to say it's right, but that's the way it goes.
Richard
Chalmette,Louisiana,
U.S.A.
Your 10 roomates, Not to say it's right, but that's the way it goes.
#6Consumer Comment
Sun, January 11, 2004
What Geico did is actually very common in the insurance industry. The company assumes that your son will at some point drive your car to the store, etc. I don't think this is unique to Florida. As far as your scenario with the 10 roomates, Geico would in fact raise your premiums in that case also, assumng that one of the roomates would eventually borrow your car. Not to say it's right, but that's the way it goes.
Richard
Chalmette,Louisiana,
U.S.A.
Your 10 roomates, Not to say it's right, but that's the way it goes.
#7Consumer Comment
Sun, January 11, 2004
What Geico did is actually very common in the insurance industry. The company assumes that your son will at some point drive your car to the store, etc. I don't think this is unique to Florida. As far as your scenario with the 10 roomates, Geico would in fact raise your premiums in that case also, assumng that one of the roomates would eventually borrow your car. Not to say it's right, but that's the way it goes.
