Insurance Rip Off

by Karin
(San Francisco, CA)

Talk About An Insurance Rip Off...

Talk About An Insurance Rip Off...

This seems like an insurance rip off by Geico!



After switching my policy to Geico 18 months ago my premium has steadily increased. This latest increase is $126.


Geico says rates increased in California so even though I have never had a claim and don't have any moving violations, never had a dui, my rate was increased.


On the radio however, the Geico commercial says that California rates have dropped. Imagine my surprise.


Another call to Geico reveals that oh, the Los Angeles area saw a decrease, unfortunately, the San Francisco Bay Area saw the increase. They couldn't answer my question as to why the commercial is running in Northern California announcing a rate decrease.


Isn't that fraud? False Advertising? Something?

~Karin








Dear Karin,

Insurance almost always seems to be a rip off, doesn't it? Well, I do understand what you are getting at here.


We, as consumers, would consider this kind of behavior by Geico as false advertising and fraud, but I'm sure there's probably something in the law that allows them to get away with it as long as they are offering lower prices "somewhere."


They probably just consider it clever "marketing" regardless of the fact that it is extremely misleading.


The great thing is that since you DO have a good driving history with a spotless record you can easily switch companies again to an insurance company that is going to treat you better.


Based on the number of complaints we receive here about Geico and their failure to pay out on legitimate claims, you'll probably be better off with another insurer in the long run anyway.


Try the different auto insurance discounters and see if you can't get yourself a better deal and a better company. Report back and let us know what you come up with.


Safe Driving!
Angie from Auto Insurance Helper

Comments for Insurance Rip Off

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Sep 06, 2011
True Post!
by: Sean McNamara

This is an excellent article and shows the trouble consumers face when they seek out the best price. Unfortunately the best price is good in the beginning but then when the company decides to increase your rates, you feel stuck. This is where I believe the Insurance Broker Channel can help you. Yes rates definitely fluctuate from year to year with all insurance companies. Your broker is aware of the current market and should be shopping your premium to their other markets when pricing begins to climb.

there is value in the broker Channel, and should be a good option to help protect you when needed.

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