NO GEICO Multiple Insurance Discount
| by Jim Wang |  Print Article
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I have an auto insurance policy through GEICO and a home insurance policy through Travelers, to whom I was referred to when I requested a home insurance quote through the GEICO website. As it turns out, even though I went through the GEICO website to get the quote and the two are affiliated, I get no discount on either policy because of the other.
It’s understood that when you get multiple insurance policies through the same underwriter, you usually get a discount and it should cost less than if you bought insurance from two separate insurers. This is not the case with Geico because my homeowner’s insurance is technically through another underwriter despite their close ties (Geico doesn’t offer homeowners I suppose).
I was pretty disappointed to hear that and I’ll be shopping around for homeowner’s insurance armed with that knowledge. I doubt there will be much of a change though since my premium is ~$55/mo which is pretty standard for the area. Oh well.
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Feb 04, 2006 | Read more in Insurance, Personal Finance
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Yeah, I thought multi-policy discounts were pretty standard. I know we get ‘em from State Farm.
Ditto for State Farm…my renter’s insurance is basically free after the line discount with my auto insurance. I’m going to stick with SF for homeowner’s too when I get it. I may be biased though…both parents worked for SF and they gave me a scholarship
Double check with Geico. I was just quoted homeowners with them and there was a multi-policy discount. 5% I believe. In fact, I just posted an entry about homeowners and Geico this morning too. Mind Meld!
I talked to a Geico CSR last night and he said there wasn’t one… I’ll have to double check. It’s because homeowners insurance was provided through Traveler’s, perhaps it’s a state issue? (Geico having no homeowner’s insurance presence in MD?)
We shop out our insurance every year or so. Currently the best deal we can find is with AAA.
I highly recommend State Farm as well. There are some things it’s worth dealing with a company that always treats you right, even if it costs a couple bucks extra. However, ironically, State Farm is usually even cheaper, and has always given us exceptiona service when we needed to make a claim. More importantly, they don’t play this game of raising rates and changing stuff around after you make a claim.
You are nuts if you think SF doesn’t raise rates when people file claims. Additionally they ofter cancel people for filing 1 claim. I have seen it with my own eyes many times. Yes I work in insurance, no I don’t work for SF. Every insurance company will raise your rate in the event of a “chargeable claim”. If you wonder what a chargeable claim is call your agent. It’s pretty much anything that isn’t storm damage for a house or a compr. claim for a car.
I recently switched away from Geico (which reminds me, I need to cancel the renter’s insurance with them as well) when we purchased our house. I did have a multi-line discount, at least on the Traveler’s side for the renter’s insurance. But shop around. A quote I got from Traveler’s via an insurance broker for homeowner’s insurance came up nearly $400/year higher than I got with Allstate, and Allstate also hooked me up with auto insurance for $400/year less than I was paying with Geico. All-around win.
I shopped State Farm as well, their auto rates were very high, and the agent tried to sell me on a bunch of his other products even after I’d told him I probably wouldn’t be buying from him.
I was told that geico plans to add multi policy discounts later this year (2008). But if your records are good, they still have great rates…With myself, they have been beating everyone else even with the others multi policy discounts.
Everyone, please keep in mind that there is no standard rate for any homeowners or auto policy. Comparing your insurance premiums to any other person is completely fruitless. Most to all insurance companies base rates on credit score, history of claims submitted or the type of car you drive (for auto). For homeowners policies the companies not only take into account credit, but a major factor is the amount to rebuild a home (homeowners) or how much contents you have (tenant). This just scratches the surface to rating factors and most importantly DON’T FORGET COVERAGE!!! This is what you are purchasing after all. There is no substitute for an honest and knowledgable agent to review your coverages with, who is also armed with many different companies to choose from. The right insurance company (price and coverage) varies for each human being on this planet.