Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Path: utzoo!linus!genrad!decvax!harpo!floyd!vax135!ariel!hou5f!orion!houca!hogpc!houxm!houxu!welsch From: welsch@houxu.UUCP Newsgroups: net.auto Subject: RE: GEICO Insurance Message-ID: <117@houxu.UUCP> Date: Sat, 18-Jun-83 09:14:44 EDT Article-I.D.: houxu.117 Posted: Sat Jun 18 09:14:44 1983 Date-Received: Tue, 21-Jun-83 00:53:34 EDT Lines: 33 I owned GEICO Insurance in the state of New Jersey and still live in New Jersey. I was very happy with GEICO and my father who owned GEICO before me was likewise very happy. At the time that GEICO left the state of New Jersey, GEICO was in serious financial trouble and felt they could no longer do business in New Jersey for a profit. The lack of profitability was due to the auto insurance laws enacted in New Jersey. Many other auto insurance companies feel the same way about New Jersey and auto insurance in the state of New Jersey is difficult to purchase today. Insurance agents have told me that the only reason many companies still sell auto insurance is so that they can sell other types of insurance, such as home owners or life. When GEICO left a number of insurance companies were willing to sell me auto insurance as long as I bought another more profitable insurance policy from them. When my mother joined me in the state of New Jersey two years ago she carried insurance from a company that is licensed to sell in the state. Despite having a good driver's discount where she came from and having a perfect record, no accidents, no tickets, (not even for parking), her company canceled her auto policy. She was forced to use the "pool" (its no longer called assigned risk) to get insurance. In evaluating GEICO it is important to determine their financial health. In 1976 GEICO was in serious financial trouble and nearly went bankrupt. GEICO made the right decision to leave the state. New Jersey's insurance laws screw everybody (especially consumers) but the lawyers! Insurance reform is not in sight. Larry Welsch