• Report: #454957
Complaint Review:

Geico Insurance

  • Submitted: Sun, May 24, 2009
  • Updated: Wed, April 02, 2014

  • Reported By:Kenmore New York
Geico Insurance
www.geico.com Nationwide U.S.A.

Geico Insurance Geico Quotes Hurt Credit Report and also Give Unfair High Quotes Washington D.C. Nationwide

*Author of original report: I never gave permission

*UPDATE Employee: Has nothing to do with your credit score

*Consumer Comment: They're all the same

*Consumer Comment: Geico needed permission from you to run credit, but regardless, it won't affect your score

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i was with Geico for about 10 years until September of 2006. I liked them. They gave me a 10% discount every time I renewed my policy.

When I traded in my car for one that required comprehensive insurance, i called them from the dealership. The rate they gave was ridiculously high. I didn't know, at the time, that they had also checked my credit report. A nasty thing to do to a long time customer with a perfect driving record- a 37 yr old female as well.

I should have known. When I bought my house in 2002, I looked into homeowne's from geico, hoping for a discount as I already had auto insurance with them- they turned me down flat due to my credit report. My realtor recommended a local NY Mutual agent and they gave me great, inexpensive homeowner's coverage- no credit report required.

I then called Progressive. They gave me a lower rate on comprehansive-not fantastic- but, again, no credit report required.

I started looking around for lower rates this past February. I was paying Progressive $148 per month. I called Geico and they told me to call back in march- as several instances where people drove into or bumped into me- none were my fault- would disappear from my record. It was also in my favor, thay said, that I handled all of them through the other driver's insurance company.

I waited until this month and got quotes from all over the internet. None were substantially lower and Progressive offered to re-write my policy for much lower- but with a $194 downpayment.

Eventually- I talked to an underwriter at progressive and they came up with a better solution. They would cancel the old policy- with about $70 owing and write a new one, a 6 month pay one- at $70 and change per month. My downpayment being my first month's payment. I had to enroll in auto billing, but that saved $5 per month.

I went with that.

Of course, a few companies have contacted me due to my online search- wanting my business, but they can't beat Progresive's price.

The MOST disturbing email I received was from Geico- the subject line was 'legally required notice'. The email described that my rate was due to my credit report!!! Car insurance should be based on one's driving record, possibly type of car, where garaged, how much driven, and maybe the history of past car insurance payments. I have had continuous coverage since 1988. I don;t see the risk they would undertake- I am not applying for a loan with them.

Now, I imagine is a mark on my credit report.

Geico Sucks. They try to sound inclusive and even push motorcycle insurance. They are the worst!!! Even worse than a higher rate!!! They don't seem to care that I am a safe driver or want my business back.

Kenmore, New York

This report was posted on Ripoff Report on 05/24/2009 03:52 PM and is a permanent record located here: http://www.ripoffreport.com/reports/geico-insurance/nationwide/geico-insurance-geico-quotes-hurt-credit-report-and-also-give-unfair-high-quotes-washingto-454957. 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 Author of original report

I never gave permission

AUTHOR: Tracy - ()

To any of these companies, especially not Geico. Never was I asked or told -anything about a credit report. That is a flat out lie. Especially with the Homeowner's. NY Mutual gave me a qoute and took the payment in seconds and it was a low quote. They had no time to check my credit. Progressive had no time to check my credit. It was ONLY geico that made me feel like a jerl for having spent money on them for so many years.

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#2 UPDATE Employee

Has nothing to do with your credit score

AUTHOR: The Truth Hurts - (U.S.A.)

Your credit score has nothing to do with affecting your credit or your premium rates. We cannot check your credit without your premission and it's also against the law. We cannot turn you down because of your credit rating.

When doing a rate online is completely different than doing it over the phone with a local agent. The online quote is more like a ball-park estimate or a misconception of the real rate. Sometimes more than half of the information needed to give you an accurate rate is missing. Don't rely on an online rate ever when comparing rates with other companies. Always talk to a licensed professional because they know what their talking about.

I think that you're more to the point where you think you found a better rate so you want to make up a whole story to make Geico a bad company. What's next? When you find a better company than Progressive, are you going to make up another story too?
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#3 Consumer Comment

They're all the same

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

If you think Progressive didn't look at your credit score, guess again. All of the major companies do it. It's just a "soft" inquiry, so it would not impact your credit score or rating.

There is a lot of information that is used to generate an insurance quote. Whether or not you think it is relevant doesn't change that. Insurance companies make risk decisions based on analyzing past data. For example, they know that an 18 yr. old single male with 2 yrs. of driving experience is a much higher risk that a 28 yr. old married female. By the same token, these companies have found that people with bad credit ratings submit a substantially higher number of claims than people with good credit ratings.

Insurance companies have been using credit data to analyze risk for over 10 yrs. This isn't something new, nor is it something unique to GEICO.
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#4 Consumer Comment

Geico needed permission from you to run credit, but regardless, it won't affect your score

AUTHOR: Secret Agent Man - (U.S.A.)

The only time running credit is supposed to affect your credit score is when you're applying for credit. Insurance companies use the same method of glancing at your credit that credit card companies do when they send you mail with a new offer you qualify for... your score would be affected by the dealership running credit to set you up with financing.

Insurance companies look at your credit report to generate an 'insurance score', which is just a way of qualifying you for discounts to your rate. Maybe you didn't qualify for discounts, so they weren't applied to your rate. If you don't agree with using credit in your insurance rating, write your congressman and complain about it. The politicians are the ones allowing insurance companies to use credit as a basis for calculating a rate.
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