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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