GEICO - Lower rates after cancellation

by Teri
(South Bend, IN, USA)

Believe it or not, with Geico, lower rates after cancellation was what we got! Here's my story...


I've been with Geico for a few years. For the most part, I am happy with the service they provide.


I've never had to file a claim, so I have no idea what that process is like with them. We chose them because they were lower than our previous company (Safe Auto). I even recommended them to my brother.


A few months ago, I forgot to pay a bill and had to call and re-instate the policy. The new policy cost was lower than the old one - both the customer service rep and I were surprised.


I let the same thing happen a month later with our other policy (motorcycle and cars policies), and the re-instated rate was lower.


So, the bottom line is, in my case, when I paid on-time for years I was never given a discount. But, after being canceled, we were rewarded with lower reinstatement rates. Go figure!

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Hi Teri,

What a bizarre story! Who would have thought that letting your policy lapse would be to your financial advantage?


I'm guessing that the reason for the discount was to "keep" your business in case you were thinking about leaving and that's why you let it lapse.


I don't suppose it would work if you tried that technique every time a payment was due, but I suppose the advice is worth trying if someone wants to give it a go.


Just be sure that you aren't driving while you're uninsured. That could cost you more than your savings if you were to get in an accident or even if you just got pulled over and had to show proof of current insurance.


Thanks for that clever tip on Geicos lower rates after cancellation. If anyone else gives it a try, let us know how it works out for YOU.

Safe Driving!
Angie