parnass@ihuxf.UUCP (06/17/83)
The following query recently appeared on the net in
"ih.misc":
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Any advice on the GEICO car insurance? I called them for a quote and
they offered me a policy at 70% of the rate I pay now. Is there a catch?
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You might find the following true story of interest:
Up until 1976, my parents and I had GEICO auto insurance in
New Jersey. The rates were low compared with other
insurance companies.
GEICO was pretty selective in choosing its customers. Ori-
ginally, its customers were government employees and their
families, who were rated as good risks. The State of New
Jersey then forced GEICO to stop discriminating and to sell
insurance to everyone. After a while, GEICO stopped operat-
ing in New Jersey, claiming that they could no longer
operate profitably in the state since they were now forced
to insure drivers of high risk.
When GEICO pulled out, its customers were left holding the
bag. We had to try and get auto insurance from other com-
panies. But, other companies wouldn't sell us insurance.
The only other alternative (since auto insurance is manda-
tory in N. J.) was to be placed into a state run "assigned-
risk" pool.
I remember walking into a State Farm office to buy auto
insurance. The agent led me through filling out the appli-
cation form. Then he asked which company I was presently
insured with. When I told him I had GEICO insurance, he
stopped dead in his tracks and said that State Farm would
not sell policies to former GEICO customers regardless of
their driving records. This happened to me at Allstate
also.
The problem became academic when I moved to Indiana in 1976
and bought State Farm insurance there. I have been with
State Farm ever since and have been quite pleased with their
service.
Robert S. Parnass
Naperville, Illinois
BTL, IH 1B-414 (312)979-5760 ihnp4!ihuxf!parnassesj@ihuxl.UUCP (06/17/83)
What did the NJ Attorney General have to say about the other companies refusing to sell former GEICO members insurance? I would think that State Farm's butt would have been in a sling for trying to pull that. Any test cases?