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!ihnp4!ihuxf!parnass From: parnass@ihuxf.UUCP Newsgroups: net.auto Subject: trouble with GEICO auto insurance Message-ID: <520@ihuxf.UUCP> Date: Fri, 17-Jun-83 10:01:38 EDT Article-I.D.: ihuxf.520 Posted: Fri Jun 17 10:01:38 1983 Date-Received: Sat, 18-Jun-83 19:28:30 EDT Lines: 51 The following query recently appeared on the net in "ih.misc": ******************************************* Any advice on the GEICO car insurance? I called them for a quote and they offered me a policy at 70% of the rate I pay now. Is there a catch? **************************************************** You might find the following true story of interest: Up until 1976, my parents and I had GEICO auto insurance in New Jersey. The rates were low compared with other insurance companies. GEICO was pretty selective in choosing its customers. Ori- ginally, its customers were government employees and their families, who were rated as good risks. The State of New Jersey then forced GEICO to stop discriminating and to sell insurance to everyone. After a while, GEICO stopped operat- ing in New Jersey, claiming that they could no longer operate profitably in the state since they were now forced to insure drivers of high risk. When GEICO pulled out, its customers were left holding the bag. We had to try and get auto insurance from other com- panies. But, other companies wouldn't sell us insurance. The only other alternative (since auto insurance is manda- tory in N. J.) was to be placed into a state run "assigned- risk" pool. I remember walking into a State Farm office to buy auto insurance. The agent led me through filling out the appli- cation form. Then he asked which company I was presently insured with. When I told him I had GEICO insurance, he stopped dead in his tracks and said that State Farm would not sell policies to former GEICO customers regardless of their driving records. This happened to me at Allstate also. The problem became academic when I moved to Indiana in 1976 and bought State Farm insurance there. I have been with State Farm ever since and have been quite pleased with their service. Robert S. Parnass Naperville, Illinois BTL, IH 1B-414 (312)979-5760 ihnp4!ihuxf!parnass