• Report: #245185

Complaint Review: Geico General Insurance Company

  • Submitted: Sat, April 21, 2007
  • Updated: Sat, August 04, 2007

  • Reported By:Phoenix Arizona
Geico General Insurance Company
One Geico Plaza Washington, District of Columbia U.S.A.

Geico General Insurance Company Cancelled my insurance without letting me know! RIPOFF! Washington District of Columbia

*UPDATE EX-employee responds: a few things....

*Consumer Suggestion: Refused certified mail.

*Consumer Comment: Nice Response, Macdane

*UPDATE EX-employee responds: Response to mail issues

*Consumer Comment: Certified Cancellation Notices Seems Unlikely

*Author of original report: Lies even on Rip Off Report

*UPDATE Employee: Not true

*UPDATE Employee: Not true

*UPDATE Employee: Not true

*UPDATE Employee: Not true

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We have been with Geico Insurance for 8 years. We have a auto, motorcycle, recreational insurances with them. It cost us over $450.00 per month. I made a change to the policy on Feb 28th. I made a $328.00 paymemt and was told that we would owe nothing until May 1st. That is when our policy would renew.

I got a cancellation letter in the mail today dated for 4-14-07. Todays date is 4-21-07. I called Geico and they told me that I was not covered and that they sent me 3 letters to let me know about the cancellation. We argued back and forth and told them that I needed it reinstated.

I had to pay $81.11 for the time that my policy had lapsed and then was told that I had to pay 850.37 to reinstate to what I already had just 7 days ago. I couldnt do that! I had to drop the insurance on 2 older vehicles, my dodge had to be dropped to liability and then lower the limits on my honda and still had to pay a down payment of $365.00.

The supervisor told me I should just pay my bills when they are due and that it wasnt her fault that I did not have insurance and that the reason that I had to pay the $800+ was because they charge you extra for having to send you cancelation notices.

Their customer service dept sucks, their supervisors suck. Is there anything that I can do? We all know that the BBB wont do anything. I hate the things that they can get away with and I will find another insurance company...

Carol
Phoenix, Arizona
U.S.A.

This report was posted on Ripoff Report on 04/21/2007 09:22 PM and is a permanent record located here: http://www.ripoffreport.com/r/Geico-General-Insurance-Company/Washington-District-of-Columbia-20076-0001/Geico-General-Insurance-Company-Cancelled-my-insurance-without-letting-me-know-RIPOFF-Wa-245185. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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Updates & Rebuttals

#1 UPDATE EX-employee responds

a few things....

AUTHOR: Ldeit3tk - (U.S.A.)

1. GEICO does sign over mail to the USPS - meaning the USPS accepts responsibility for the mail after it leaves GEICO property, so if someone has not received their mail in a timely matter they need to speak with the USPS. If a policyholder presents a letter from the USPS stated the letter was not sent or sent in a timely matter due to post office error, GEICO will review the policy for reinstatement without a lapse.
2. GEICO does not charge fees for sending cancellation notice. The amount you paid was for coverage that was extented to you without payment, and the amount of a new 6 month policy period beginning the day you make a down payment. It is possible for your rate to increase after a lapse because the insurance company may find they need to rate your risk differently for a variety of reasons including lapses, new driving activity, number of claims, etc
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#2 Consumer Suggestion

Refused certified mail.

AUTHOR: Mike - (U.S.A.)

If someone doesn't pick up the certified mail, there still is proof that it was sent. The sender can show a judge the USPS card and have the judge open the envelope to prove that they attempted to notify the receiver on a certain date.

The best way is to send a copy certified AND one regular mail. Even if the certified is refused you can argue that the addressee knew what was in it because they received another copy by regular mail.

Most state laws require cancellation notices be sent by certified mail. So it is a necessary cost of doing business to the company.
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#3 Consumer Comment

Nice Response, Macdane

AUTHOR: Juliet - (U.S.A.)

Macdane, thanks so much for the enlightening response! When the employee of a company comes on here to support the company, and in doing so, bashes the customer, yes, it creates a terrible impression, and just further supports the original writer's claims of company incompetence.

Spouting off inaccurate information in a condescending matter, such as with Nicole, serves only to infuriate even NON-customers, such as myself.

If you could possibly influence Geico in any way to make sure their notices of cancellation DO NOT appear to be junk mail' - that would sure be a service, that much is clear. I realize that's a tall order, lololol, but as an employee, you would probably have more ability to contact such people than any customer.

Very nice to see there are employees at Geico who do care about informing consumers, and being professional while doing so.
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#4 UPDATE EX-employee responds

Response to mail issues

AUTHOR: Macdane - (U.S.A.)

Having recently been employed at GEICO for nearly 5 years I can understand the confusion around mailing of cancellation issues. I have worked in Customer Service, Sales, quality control and finally as an underwriter and I may be able to shed some light on this confusion. . GEICO does not typically send certified mail for cancellation due to non-payment due to the amount of cost that is involved with the billing issues of 7 million policy holders. However, Geico does send certified mail for underwriting decisions that have negative consequences (i.e., cancellation for underwriting reasons or non-renewal). This is done because cancellation for underwriting reasons is regulated by each state's insurance commission and each state expects GEICO to be consistent in applying the agreed upon underwriting guidelines. The certified mail that Nicole made reference to does not have to be certified that it has been received by the policy holder, but rather certifies that the piece of mail has been delivered to address on the letter by the post office not UPS . This is why some people miss cancellation letters since cancellation letters unfortunately look like junk mail from GEICO that policy holders get all the time and this process in my opinion is counterproductive.

Finally to the GEICO employee who is responding to these posts. You cannot convince people that they are wrong when you accuse them of being essentially stupid or lazy. Remember, you have insider information working for GEICO and that makes you an expert on the inner workings of GEICO; however that knowledge comes with a responsibility to be an ambassador of goodwill and not to rub it in consumers' faces. I understand that dealing with policy holders is hard and this website gives you pulpit to voice you opinion, unfortunately your opinion comes off as condescending and that will convince no one that you have anything of great importance to say.
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#5 Consumer Comment

Certified Cancellation Notices Seems Unlikely

AUTHOR: Juliet - (U.S.A.)

I sure hope Nicole isn't in Customer Service, telling people that an insurance company would send all cancellation notices CERTIFIED mail. That is ludicrous, on its face.

What if someone refuses to accept it, it would then be not delivered, and what position would that put the insurer in?

The insurer spends an exorbitant amount of money each day, sending cancellation notices certified mail via USPS, and if someone refuses to accept it, then the CUSTOMER has proof, thanks to the insurer, that the customer was NOT notified of cancellation, as the USPS has proof the notification was refused or not picked up, and therefore not delivered to the customer.

So, where would that leave the insurer? There's undeniable proof that the notice of cancellation was positively never delivered. Seems like an extremely sticky situation for the insurer.

Adding in the costs of mailroom personnel to complete all those certified mail forms, plus the costs of legal fees for all the people who could rightfully prove they never received notice of cancellation - those are just two of the sticky widgets I can envision coming from certified mail notices of cancellation.

Maybe the insurers SHOULD send them by certified mail! It'd be something to help the customers, for once!
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#6 Author of original report

Lies even on Rip Off Report

AUTHOR: Carol - (U.S.A.)

I just can't believe that a rep of Geico would get on here and lie. I got it straightened out with Geico. They reimbursed me the money because it was their fault. I am happy again! Plus the supervisor who talked down to me called and apologized for the inconvience. Another thing we need to discuss is that Geico does NOT send out certified letters to let you know that your insurance has been cancelled.

I called Geico after reading your little comment. They told me they couldnt send out certified letters because, there are to many people who get cancelled daily for non payment. So next time you decide to stick your nose into something you should probably have your facts straight.
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#7 UPDATE Employee

Not true

AUTHOR: Nicole - (U.S.A.)

You stated that you have had a policy with GEICO for 8 years, yet you dont know your payment schedule?

Are you on a monthly pay plan? Or a 4 pay plan?

This is what normally happens, we send out a bill and once we dont get a payment a cancelation notice is sent with a deadline date on it. Every state requires that insurance companies send out these notices prior to canceling a policy. There was one sent to you. If you didnt open it or read it that can not be blamed on the insurance company. If you made a full payment in April like you said there is no way for your policy to cancel without another notice being mailed. By the way these notices are sent out certified mail from the USPS.
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#8 UPDATE Employee

Not true

AUTHOR: Nicole - (U.S.A.)

You stated that you have had a policy with GEICO for 8 years, yet you dont know your payment schedule?

Are you on a monthly pay plan? Or a 4 pay plan?

This is what normally happens, we send out a bill and once we dont get a payment a cancelation notice is sent with a deadline date on it. Every state requires that insurance companies send out these notices prior to canceling a policy. There was one sent to you. If you didnt open it or read it that can not be blamed on the insurance company. If you made a full payment in April like you said there is no way for your policy to cancel without another notice being mailed. By the way these notices are sent out certified mail from the USPS.
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#9 UPDATE Employee

Not true

AUTHOR: Nicole - (U.S.A.)

You stated that you have had a policy with GEICO for 8 years, yet you dont know your payment schedule?

Are you on a monthly pay plan? Or a 4 pay plan?

This is what normally happens, we send out a bill and once we dont get a payment a cancelation notice is sent with a deadline date on it. Every state requires that insurance companies send out these notices prior to canceling a policy. There was one sent to you. If you didnt open it or read it that can not be blamed on the insurance company. If you made a full payment in April like you said there is no way for your policy to cancel without another notice being mailed. By the way these notices are sent out certified mail from the USPS.
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#10 UPDATE Employee

Not true

AUTHOR: Nicole - (U.S.A.)

You stated that you have had a policy with GEICO for 8 years, yet you dont know your payment schedule?

Are you on a monthly pay plan? Or a 4 pay plan?

This is what normally happens, we send out a bill and once we dont get a payment a cancelation notice is sent with a deadline date on it. Every state requires that insurance companies send out these notices prior to canceling a policy. There was one sent to you. If you didnt open it or read it that can not be blamed on the insurance company. If you made a full payment in April like you said there is no way for your policy to cancel without another notice being mailed. By the way these notices are sent out certified mail from the USPS.
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