GEICO has a policy of securing new clients via unethical business practices.
My story with Geico Insurance happened in Los Angeles, California. When my auto insurance was up for renewal Sept. 26, '07, and because the company I was with (Mercury) had raised it by $50. Per 6 mos period, I decided to shop Geico. It was Sept. 8. As I had trouble getting a quote from the website, I called the 800 number and got their representative.
As she gave me the quote she noted that I had had a speeding ticket. I said yes but that I had gone to traffic school for it and the ticket had been dismissed. (And the reason one goes to traffic school is so that your insurance costs will not go up of course.)
Her quote for 6 mos was $100. Less than Mercury's - potantially a savings of $200. A year for me. I told her that was great, go ahead and sign me up to start on Sept. 26th, when my 6 mos policy with Mercury would be up.
She immediately convinced me not to wait but to start with Geico the next night at midnight (Sunday), with a call to my insurance agent on Monday morning to cancel the remaining time on the Mercury policy, who would refund me the balance of my payment to them. I paid her the full six month's quoted amount on the spot.
A week later I got mail from Geico - it's a good thing I didn't just throw it out as bulk mail - and there was no letter, just a bill with a new balance due - they were adding $300. To my six month's fee! I called and spoke to their rep who said it was because of the ticket, but if the ticket had been dismissed just get them the report to that effect from the DMV and they would stay with the original quote.
She gave me her Fax number to send the DMV paperwork. I went the next business day and got the paperwork, which clearly says the ticket was dismissed, and sent that via FAX to her, including the best phone number to reach me at. She called another number however and left a message saying that
1) she only vaguely recalled our conversation (she actually said that! And apparently they make no record of their service calls); but
2) the paperwork wasn't good enough, as the ticket has to actually disappear (be erased) from the DMV record to qualify for the price quoted. (And the DMV tells me that will not happen for 3 years.)
SO - the original sales rep knew the price she quoted was going to be changed in all likelihood and that is why she pressured me to cancel Mercury in advance of the expiration of my six month policy. And who knows what the second rep thought when she sent me to the DMV.
I called once more, but their underwriters refused to lower the price at all.
But i will cancel this policy as soon as possible.
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