I live in Brooklyn, NY and leased a Volvo XC40 6 weeks ago. I have Geico auto insurance and I pay $170/month. Someone rear ended my car a month ago. They admitted their fault and paid for the damages of my car.
At the same time, Geico flagged my account as suspicious and requested copies of my driver license, registration and two utility bills. They are making things extremely difficult. They don’t accept email and I have to mail these documents to their PO box. It’s been over 2 weeks I sent multiple copies including priority express overnight and they claim that they haven’t received them. Finally, on Thursday they said received the documents but they want another copy of my utility bill.
My insurance terminates tomorrow and I don’t think they will get and process these documents by tomorrow. Other companies are denying me insurance because of the accident this accident. Progressive offers at $700/month and State Farm at $300/month.
Has anyone been in a situation like this? Do I have any legal rights in a situation like this or should I accept that my insurance cost will sky rocket?
Try filing a complaint with the CFPB. Those complaints go directly to the executive office level and are taken seriously. You will generally get an acknowledgement call the same day.
This isn’t making sense to me at all - are you withholding a portion of the situation here?
The other party admitted fault and has paid. What is your insurance getting all worked up about? Why would other companies be hesitant to accept your business? Do you have a handful of previous claims on your record? There almost has to be something else going on here; I doubt it is as clear-cut as its been presented.
Unfortunately, I’m not withholding anything and there is nothing else. So I didn’t own a car for around 5 years and I had insurance only for ~2 week when the accident happened. When I googled it, looks like it is common practice for insurance to go up or flagged even for not at fault accidents because statistically they have a higher chance of getting involved in accidents.
I think from other insurance companies’ perspectives, I look like someone who is insured recently and trying to change their insurance provider right after an accident.
At this point, I will get an insurance from NYAIP because even my $730/month Progressive offer got declined at the final stages. I also started filling complaints and I will try to get my Geico insurance restored.
That’ll be a huge red flag for the insurance companies. You had/have no record (essentially), were given the chance to prove yourself, and money was quickly thrown into the fire (although not “your fault”).
What it would look like to an insurance company and almost anyone else is fraud. Whether it was or not is speculative.
You didn’t have insurance for years, picked it up then filed a claim for hit and run in 2 weeks. So they’re assuming someone hit you while uninsured then you used insurance to pay for it.
The burden of proof is on them since they don’t inspect cars before insuring them. But they likely don’t want to cover you any longer due to the suspicious nature.
In my case, we were able to find the other party from their license plate. They admitted their fault and paid for the repair directly. Geico didn’t pay anything and they know that other party admitted their fault.
I wasn’t accusing you at all just saying what it looks like. If that’s the case and they admitted fault then they shouldn’t be dropping you but they can do whatever they want I guess.
One thing I want to clarify is that Geico didn’t pay anything to repair my car. I had a picture of the other car on the scene and a witness. Geico found the contact details of the owner. They were a self insured transportation company. They admitted their fault and the other party paid for the repair of my car. Geico didn’t pay for the repair.
Geico is a sinking ship right now and I had terrible experience with them in my accidents. Shame progressive is so high bc I like them and they currently insure me for less then geico was.
I would talk to a broker and let him work for you to find the best rates. Getting away from geico is a blessing in disguise
Since you had a long lapse without insurance you’re going to have to suck it up for 6 months and pay a higher rate. After that I would shop again for quotes.
? We have had Geico for 10+ years now and not a single issue…had a couple claims for hail and car getting shot with no issue on repairs, quickness, etc. Accident forgiveness too which obviously hope to never use.
This scenario is common in NYC though. No car since HS, college or maybe ever. Then you get your first car at age 28-32+ when you can afford the $1,500+ monthly nut for car payment, parking and insurance combined. Or have left the city.
I had Geico for about 5 years with no problems, but out of nowhere they tried to raise my rates from ~131/mo to 195/mo back in 2021. No accidents, no claims, not even a parking ticket. I called and asked why and there response was “We’ve found your car (a 19’ mercedes E300 at the time) has been more expensive to repair across the country, so we’re raising rates for their drivers”. I asked if they would raise my rates that much, if I were involved in an at fault accident and they said “No, probably not”. Straight BS on their part.
I called progressive right after and they quoted me $128/mo. Cancelled Geico and have been with them since.
Geico is losing customers like crazy to progressive right now. Increasing policies in all their customers seems to be a common theme. I switch insurance every year or 2 bc that seems like the only way to get a decent rate
I always comp to Progressive, etc upon renewal time to make sure I’m not being hosed…Progressive was a couple hundred more than Geico for me per 6 month period last I checked…plus having Accident Forgiveness is a big deal and jumping around insurers won’t allow you to build that history with one that can be rewarded.
