Geico is big on the bait and switch game and this type of insurance practice is what, I believe, makes them so competitive in the industry. This is my experience with Geico Car Insurance, Not Once but 2 times so I had to write a note to others:
It starts with a Quote that usually is more competitive than any other Auto company out there. (even the employee's will express this to you). I will always disclose any accidents or tickets by explaining this to the Agent and also giving them my Social and DL# to run MVR reports; this way the quote should be accurate. I always pay the 6 month premium rather than monthly, to save an extra forty or some odd dollars. It's my experience that no matter what I do the Agent on the phone appears to be omitting accidents or tickets at the time the policy is written temporarily to keep the premium competitive enough to bite; so I pay the premium to start the policy. Without fail; two weeks later I will receive a notice stating the underwriters discovered something in addition to the other disclosed info on the initial report and because of this added incident, my premium will be adjusted by 4 or 5 hundred additional dollars over the 6 months, payment due immediately. This is the bait and switch because most people will either pay the added premium or Cancel the policy. Whatever you do "don't use" the words "Cancel", explain to them; "Void" the original offer and refund the entire paid premium, so you don't suffer any cancelation fee's. After all it's the original Agents fault, you gave them all your required info, prior to starting the policy. If you do this correctly they will refund you the full 6 month premium; here is the money maker on their end!
They may miss out on the Cancel Fee's, which I unfortunately paid, first time around; not understanding this process. They also hold your entire 6 month premium for 14 business days before your refunded back the money paid. Leaving you without that money for almost 3 - 4 weeks because they don't count weekends. Now this is the money maker on Geico's end; think about it, if they were to do this to 1,000 people who paid on average, 1,000 for 6 mo premium; that equals Ten Thousand dollars revolving, to earn dividends or interest off people who never start a policy. All big corporations today do similar practices and totally go unnoticed. For example; Online "big store's" like, Walmart and Kohls (notorious for this type of money making scam), will run ads to get you to buy something and later inform you the item is sold out, still holding on to your money paid as a bank authorization for up to 10 days. This revolving money earns them millions of dollars in earned interest over the years. Don't get me started on H.O.A.'s. Corporate Greed is ruining America fast, Big business is simply put; "Modern Day Mafia" and the banks play the game, holding some who can't afford it hostage while they earn from your temp deposit. Just a little info I wanted to share from one Man's perspective. I boycott Walmart still to this day and will not use credit to purchase anything from company's unless I absolutely have too.
"Bait and Switch" is simply being offered something upfront so that you pay the minimum, and then discovering it's not what you paid for, leaving you stuck with an offer to buy more, or walk away, losing the small amount you paid upfront.
Moral of this story: "if it sounds to good to be true, chances are; you'll pay much more in the long run!" read more
