Geico General Insurance Company Bait and Switch San Diego CA

I have been a policy holder of Geico for over 20 years, never had a claim or reason to question them. A close friend had a Home Owner's Policy with another insurance company, that just increased their premiums. She asked me for advice, and based on my service, I suggested Geico. She called Geico, and was transfered to the Home Insurance dept.

She spent several minutes getting a quote, and although it was a few dollars more, she liked the service representative's repore and expert advice, and purchased the policy from Geico with a credit card, paid in full. They followed up with a request for interior photos of the wood stove, which she imediately took, and forwarded to the address provided. Hearing nothing in a week, she followed up with a phone call.

A Geico agent claimed they had not recieved them, please send again, this time to a different address. Shortly after she received a letter of coverage from a company called "Arrowhead General Insurance Company", in a Geico envelope, confirming coverage. At this time she cancelled her home Owners Policy with the former company that she had for more than 20 years, with no claims.

About 45 days later she received a CANCELLATION notice from a company called Zurich-American, (also in a Geico envelope) stating that they don't insure homes with wood shingle siding, and that her home had shingles on one side of her house.  She imediately contacted Geico, who said they were sorry,  gave her another quote for double the price, which she cannot afford on a fixed social security income.

She has not received a refund in over 10 days of the cancelation. Upon calling a Geico representative they said a refund would be issued, minus the pro-rated coverage, and a $50.00 processing fee. After reading consumer reviews, this appears to be a comon occurance with Geico, and their shady partners. She was NEVER informed about a $50.00 processing fee, that she was being handed off to Arrowhead, or Zurich-American.

Had we known, I would have researched these fly by night crooked outfits and she would have kept her other insurance coverage. After calling a few local auto body repair shops in the area, I have found most will not take Geico claims as they do not pay the usual and customary rates. I am fortunate I never had a claim, and will be changing insurance carriers ASAP, and my friend is without coverage, based on my poor judgement of Geico's buisness practices.