Gieco vs. State Farm

Discussion in 'Credit Talk' started by Terry, Oct 4, 2001.

  1. Terry

    Terry Well-Known Member

    I was one of the lucky people to get Geico insurance when they first started underwriting in PA. I have to admit my insurance was dirt cheap and I had full tort! Well, 2 years ago I purchased a Nissan Maxima. When they renewed my policy this time they raised my insurance about 130 bucks every six months! My insurance is $489 every six months which is extremely high. Keep in mind I have no accidents nor tickets.

    I talked to my insurance agent. She sold me a renters policy. When I received the bill today, I immediately called her. She is with State Farm, and quoted me $364.27 every six months, which offers things that I don't have on my current Geico policy. That is about what I was paying Geico in April when my policy renewed. I emailed Geico and they told me my rates raised based on claims in my area, which I know is total BS.

    My question is: At what point will State Farm peak at my credit report? Is it better to go through a local agent vs a 1-800#? I am so pissed at Geico right now. If State Farm can guarantee me the cheaper rate I will cancel Geico today. I don't want them to use FICO to determine my rates. But if they use Equifax, or Trans Union I will get their best rates. If they use Experian (Which everyone seems to use because there is a local affilate in Western PA) I am screwed. Any suggestions?
  2. breeze

    breeze Well-Known Member

    To the best of my knowledge, SF does not check credit. They could have changed, but I know they came out with a public statement that they felt credit had no bearing on insurance risk.

    Your SF agent will tell you for sure what they do. Call!!
  3. Terry

    Terry Well-Known Member

    thanks breeze
  4. SisterGirl

    SisterGirl Well-Known Member

    I have had auto insurance since 1989 & motorcycle insurance since 1997 & they have NEVER reviewed my credit(except when I initiated my policy in 1989.....they pulled Equifax).

    I still have them to this day & very frequently pull all 3 CRA's & no reviews(soft or hard)from them.

    Sister Girl
  5. Bill B

    Bill B Well-Known Member

    Wow you guys are lucky! Wife just got her license and a 94 ford taurus got min coverage $1,400 a year
  6. romanduv

    romanduv Well-Known Member

    Wow thats a lot! I also have a 94 taurus and just got a license(one of lifes little coincidences), and am only paying $850 a year.
  7. doodyhead

    doodyhead Well-Known Member

    State Farm does use credit scoring.

    from their site:
    Types of information we may collect and how we gather it:

    From you, (on applications for our insurance, banking and investment products, or on other forms, through telephone or in-person interviews, your State Farm agent, and our Customer Response Center) such as your address and telephone number

    From your transactions with us, such as your payment history, underwriting, and claim documents

    From non-State Farm companies, such as your driving record and claim history

    From consumer reporting agencies, such as your credit history
  8. cariba

    cariba Well-Known Member

    I live in MD and when a family member added me to their auto policy, they pulled Equifax.

  9. dlo64

    dlo64 Well-Known Member

    I have received quotes from Geico and one of the online places (can't remember what site it was) that claims their rates could be lower. The first time I tried had to be back in 1995 when I had State Farm. State Farm was still lower than Geico. Then I changed to Farmers in 1996 who was lower than State Farm and is still lower today than State Farm. I checked with my State Farm agent that still holds a personal articles policy for me last year on auto insurance and Farmers still had them beat. At the same time I checked with Geico and the online site that I can't remember and Farmers was way lower.

    So from my experience for cost, you are better going with either State Farm or Farmers. I didn't think State Farm checked credit (of course it's been awhile), but Farmers will check periodically.
  10. dogman

    dogman Well-Known Member

    Re: Geico vs. State Farm

    I have had great luck with Geico - and they reduced my prices dramatically when they reviewed my record, etc.

    I had State Farm about 10 years ago - no accidents but they had a local Agent, which I appreciated.

    Check American Express Property and Casualty - they will quote without running a report. I do not know if they pull credit - but it certainly appears that when one applies for new insurance - credit is checked with almost all of these companies.

    c ya dogman
  11. Bill B

    Bill B Well-Known Member

    Re: Geico vs. State Farm

    I live in Massachusettes and out here there is no deals..I guess it is set rates, So no matter where i go it is the same..Need to move..
  12. breeze

    breeze Well-Known Member

    Re: Geico vs. State Farm

    Is MA a "no fault" state? That might explain it.
  13. newstdt

    newstdt Well-Known Member

    Re: Geico vs. State Farm

    I have been with SF for ages. I have a renewal coming up in Dec. Curious to see if it gets cancelled or goes way up due to my BK. I pay 384 every six months for my 2000 Dodge Caravan. I also have my renters insurance through them.
  14. Bill B

    Bill B Well-Known Member

    Re: Geico vs. State Farm

  15. breeze

    breeze Well-Known Member

    Re: Geico vs. State Farm

    Apparently there are some problems in Massachusetts:

  16. Bill B

    Bill B Well-Known Member

    Re: Geico vs. State Farm

    Thanx for the article..I knew it was something screwy..In other states do they use the s.d.i.p.? Driving steps? Here new drivers start at 15 and can go down a point a year to 9 if no tickets or accidents..Wife is at 15 i am not good at all 32 If i was to insure her car it cost me $3,500 a year...
  17. supershawn

    supershawn Well-Known Member

    Re: Geico vs. State Farm

    I have been shopping myself....

    Geico (current) $340.00 every 6 months (also have my home owners)

    State farm $527.00 every 6 months.
    Amex $479.00 every 6 months.

    Didn't try progressive as last time they pulled TWO reports for my online quote.....which mysteriously got disputed off...heh heh

  18. breeze

    breeze Well-Known Member

    Re: Geico vs. State Farm

    Not here - VA. But each company has their own points system. Here, age is a big factor when you're young. but being married or owning a home overcomes being young here, and lowers your rate.

  19. Erica

    Erica Well-Known Member

    Re: Geico vs. State Farm

    State Farm pulled my Experian only, I'm in NY. I switched to them when Progressive upped my rate to $431/6 months for state minimum liability only. State Farm only wanted $226/6 months for more than state minimums. Geico wanted ~$600/6 months and AMEX wouldn't even ogive me a quote. For AMEX, you need to have STELLAR credit. No derogs last 10 years, etc. FYI...
  20. lbrown59

    lbrown59 Well-Known Member

    Re: Geico vs. State Farm

    GEICO COST ME $500 A YEAR FOR 5 PICK UPS.Never seen any other insurer come close to this deal.

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