New Geico add.
05-05-05, 07:45 PM
#1
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New Geico add.
Even though Im not a fan of kids that partake in stupid activities, adds like this remind me to never ever ever ever ever, become a customer of geico.
Now theyre are going after people that do modifications.
What I find it hilarious is their level of understanding of car enthusiasts however. WTF is a turbo booster? I take it that auto tag is a tandem drift? Anyways Even though im no longer a teenager living at home, I just dont want a company as clueless as this "insuring" my vehicle.
Theyre going completely the wrong way about it, using scare tactics on parents is probably the worst way to solve risky teenage driving (seeing how they like to be rebellious at this age). Instead they should endorse autocross days, track days or even us drift events. Aka legal avenues where such places can safely take place.
A big thumbs down to geico, this is one customer that is never ever ever, going back to geico.
And thank God my parents were not the clueless lambs, geico portrays parents to be, the way they talk to down to them is down right insulting! Then again my father was and still is a gear head.
Now theyre are going after people that do modifications.
What I find it hilarious is their level of understanding of car enthusiasts however. WTF is a turbo booster? I take it that auto tag is a tandem drift? Anyways Even though im no longer a teenager living at home, I just dont want a company as clueless as this "insuring" my vehicle.
Theyre going completely the wrong way about it, using scare tactics on parents is probably the worst way to solve risky teenage driving (seeing how they like to be rebellious at this age). Instead they should endorse autocross days, track days or even us drift events. Aka legal avenues where such places can safely take place.
A big thumbs down to geico, this is one customer that is never ever ever, going back to geico.
And thank God my parents were not the clueless lambs, geico portrays parents to be, the way they talk to down to them is down right insulting! Then again my father was and still is a gear head.
Last edited by Inabj2; 05-05-05 at 07:53 PM.
w.......lets go SPEED RACER!!!!!
I have state farm and they have taken care of me very well with the accident and my car getting broken into. My premium hasnt gone up either 
05-05-05, 10:25 PM
#5
Out of Warranty
When did insurance companies have to start teaching responsible parenting?
I understand the purpose of Geico's ad - some parents are so clueless . . . 
If you are 16 - 25 and pay your own insurance, then mod away, but if you are on a family policy, your performance mods (and/or your arrest record) may cost the money machine (a.k.a. Daddy) a whole lot of bucks.
Some biological replicators - we can hardly call them parents - simply dole out cash to keep the kids entertained and happy rather than get to know them. Hot new $40K car? No prob. Whatever keeps the little squid from whining. Fling money at the problem. Suggestion: Try being a mom or dad, not the kid's best bud. It has to do with actually spending time with the kid, get to know what's important to them, learn to talk. Share in their interests - detail the car, heck, MOD the car, talk.
If Junior's burning his way through a set of back tires every two weeks and you've never heard of drifting - turn in your reproductive permit.
If you are 16 - 25 and pay your own insurance, then mod away, but if you are on a family policy, your performance mods (and/or your arrest record) may cost the money machine (a.k.a. Daddy) a whole lot of bucks.
Some biological replicators - we can hardly call them parents - simply dole out cash to keep the kids entertained and happy rather than get to know them. Hot new $40K car? No prob. Whatever keeps the little squid from whining. Fling money at the problem. Suggestion: Try being a mom or dad, not the kid's best bud. It has to do with actually spending time with the kid, get to know what's important to them, learn to talk. Share in their interests - detail the car, heck, MOD the car, talk.
If Junior's burning his way through a set of back tires every two weeks and you've never heard of drifting - turn in your reproductive permit.
With that new Driver's License goes some responsibility...on both parents and junior's part.
05-06-05, 05:53 AM
#7
They area the most deceptive company I know of!! You could not pay me to be one of their “customers”. Back in the mid 90’s they were caught giving radar/laser guns to small towns where they had large numbers of customers, with the hopes of increasing their premiums when they get caught speeding thus increasing their revenue. 
When questioned they would not talk about it. They are totally dishonest! I believe Car and Driver ran an article about it. They are one company that really makes me mad! 
I have no respect for a company that does stuff like this!! They should be 
When questioned they would not talk about it. They are totally dishonest! I believe Car and Driver ran an article about it. They are one company that really makes me mad! I have no respect for a company that does stuff like this!! They should be
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05-06-05, 06:42 AM
#8
Originally Posted by CdeFabio
They area the most deceptive company I know of!! You could not pay me to be one of their “customers”. Back in the mid 90’s they were caught giving radar/laser guns to small towns where they had large numbers of customers, with the hopes of increasing their premiums when they get caught speeding thus increasing their revenue. When questioned they would not talk about it. They are totally dishonest! I believe Car and Driver ran an article about it. They are one company that really makes me mad! I have no respect for a company that does stuff like this!! They should be
When questioned they would not talk about it. They are totally dishonest! I believe Car and Driver ran an article about it. They are one company that really makes me mad! I have no respect for a company that does stuff like this!! They should be
05-06-05, 07:21 AM
#9
Out of Warranty
Insurance - beating the odds
Now that you mention it, I seem to remember C/D's diatribe against the "Geico Guns". It had me pretty steamed too. But there is another side to the question - a business side. I’ve never understood insurance very well, to me it is one of the black arts – but I do understand business – and having spent a small amount of time with games of chance in my past, I understand odds.
Geico, like any insurance company is in the gambling business. Through exhaustive research they determine the odds of the game, developing actuarial tables that seek to predict the “risk” represented by a single customer. To be competitive with other "dealers", they have to charge the least they can, while staying above the profit/loss line. If your driving history and ownership pattern indicates you are likely to total a new $40K car every ten years (assuming no injuries or additional claims), your carrier needs to be sure they are getting at least $4K per year, plus interest, overhead, sales commissions and profits out of your pocket. If they succeed, they'll be around next year, if not, they're out of business having cut their revenue to the point they are paying out more in settlements than they receive in revenue.
That's a huge oversimplification, but you can see where the insurance company is coming from. About the only ways they can offer competitive rates is to reduce their internal costs my maximizing their efficiency, and/or juggle the odds of the game, something not available to (legal) gaming houses. Many companies offer discounts to drivers with good records, some will not insure drivers with accidents or tickets - why? To keep their risk pool as "clean" as possible, to reduce the total settlements they have to make.
Another method of reducing their liability is to reduce the likelihood of accidents. Now this gets into some pretty cold statistics, but it has been well proven that excessive speed, among other factors - across a broad cross section of the driving public - is a major contributing factor to the frequency and severity of accidents. By not insuring people with records of speeding, or by taking steps to help enforcement of speed limits, thus lowering speeds, they are defending their business.
They are not going to make excessive profits - for long - because their rates will eventually become uncompetitive if they overcharge for their coverage. All carriers must deal from the same deck and serve the same customers; they all deal with the same motorists. If, by providing radar guns (proven to reduce incidents of speeding where they are employed) they are not going over to the dark side, but trying to improve their odds. They underwrite traffic schools, crash testing, seat belt and airbag development for the same reason. In the long run, as their odds improve, rates go down. If they can stay just ahead of the anticipated payout figures (plus all business costs) year by year, they get to play another hand.
Now, if their overall business is doing well, they are staying ahead of their costs. But what happens if you have been assigned to the wrong risk pool within this large number of drivers? If you are lumped in with a bunch of poor risks, you will pay through the nose, while costing the company very little in terms of payouts. Not a good deal for you, but a windfall profit for the company. While this might look good on a balance sheet, they probably won't retain you as a customer for very long, eventually losing you to another company who more fairly evaluates your risk. This is another way of putting themselves out of business.
Finally, state insurance commissions set standards that tamper with the supply/demand relationship of the business. If insurance companies are only allowed to charge certain rates for their coverage, the companies must act to re-balance the odds. Mandatory liability coverage theoretically broadens the risk pool. In some instances state regulation has led to some high-risk areas getting direct enforcement assistance from the insurance carriers. Whether that assistance is a radar gun, a traffic school, assistance in funding publicity campaigns, or safety programs, all tend to tilt the odds back in favor of the house.
As you can see, insurance is an extremely complex study of statistics and probabilities. Insurance companies don't like to be seen as traffic enforcers, but from a business standpoint, it is a win-win situation for them. They pay fewer or smaller jackpots, you get into the game for less, more people come to the table expanding the risk pool, and reducing the financial impact of any single jackpot winner.
Geico, like any insurance company is in the gambling business. Through exhaustive research they determine the odds of the game, developing actuarial tables that seek to predict the “risk” represented by a single customer. To be competitive with other "dealers", they have to charge the least they can, while staying above the profit/loss line. If your driving history and ownership pattern indicates you are likely to total a new $40K car every ten years (assuming no injuries or additional claims), your carrier needs to be sure they are getting at least $4K per year, plus interest, overhead, sales commissions and profits out of your pocket. If they succeed, they'll be around next year, if not, they're out of business having cut their revenue to the point they are paying out more in settlements than they receive in revenue.
That's a huge oversimplification, but you can see where the insurance company is coming from. About the only ways they can offer competitive rates is to reduce their internal costs my maximizing their efficiency, and/or juggle the odds of the game, something not available to (legal) gaming houses. Many companies offer discounts to drivers with good records, some will not insure drivers with accidents or tickets - why? To keep their risk pool as "clean" as possible, to reduce the total settlements they have to make.
Another method of reducing their liability is to reduce the likelihood of accidents. Now this gets into some pretty cold statistics, but it has been well proven that excessive speed, among other factors - across a broad cross section of the driving public - is a major contributing factor to the frequency and severity of accidents. By not insuring people with records of speeding, or by taking steps to help enforcement of speed limits, thus lowering speeds, they are defending their business.
They are not going to make excessive profits - for long - because their rates will eventually become uncompetitive if they overcharge for their coverage. All carriers must deal from the same deck and serve the same customers; they all deal with the same motorists. If, by providing radar guns (proven to reduce incidents of speeding where they are employed) they are not going over to the dark side, but trying to improve their odds. They underwrite traffic schools, crash testing, seat belt and airbag development for the same reason. In the long run, as their odds improve, rates go down. If they can stay just ahead of the anticipated payout figures (plus all business costs) year by year, they get to play another hand.
Now, if their overall business is doing well, they are staying ahead of their costs. But what happens if you have been assigned to the wrong risk pool within this large number of drivers? If you are lumped in with a bunch of poor risks, you will pay through the nose, while costing the company very little in terms of payouts. Not a good deal for you, but a windfall profit for the company. While this might look good on a balance sheet, they probably won't retain you as a customer for very long, eventually losing you to another company who more fairly evaluates your risk. This is another way of putting themselves out of business.
Finally, state insurance commissions set standards that tamper with the supply/demand relationship of the business. If insurance companies are only allowed to charge certain rates for their coverage, the companies must act to re-balance the odds. Mandatory liability coverage theoretically broadens the risk pool. In some instances state regulation has led to some high-risk areas getting direct enforcement assistance from the insurance carriers. Whether that assistance is a radar gun, a traffic school, assistance in funding publicity campaigns, or safety programs, all tend to tilt the odds back in favor of the house.
As you can see, insurance is an extremely complex study of statistics and probabilities. Insurance companies don't like to be seen as traffic enforcers, but from a business standpoint, it is a win-win situation for them. They pay fewer or smaller jackpots, you get into the game for less, more people come to the table expanding the risk pool, and reducing the financial impact of any single jackpot winner.
05-06-05, 07:30 AM
#10
Lead Lap
Funny thigs is, I work right next to their big Geico building here in Poway, CA. and their employees are the worst in the area. I have many co-workers complain on how they drive.
Also, Thier parking lot is full of modified cars.. I notice tons of hondas and Mitsubishi's slammed with rims all over thier parking lot. Myabe they should apply the standards that they write about to the way they hire their employees.
Also, Thier parking lot is full of modified cars.. I notice tons of hondas and Mitsubishi's slammed with rims all over thier parking lot. Myabe they should apply the standards that they write about to the way they hire their employees.
05-06-05, 08:43 AM
#11
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Well, I have Geico and have not had any problems with it. All of our vehicles are insured on Geico. They are not in the business of insuring high risk operators at all. They are merely trying to make a point to their insureds (customers) that they are not going to be paying claims for street racing mishaps, etc.
My father has been a trial attorney since 1976 and he has extensive experience dealing with insurance companies and he said the top auto insurance companies (in his experience) are Geico, State Farm and Allstate. He has dealt with just about every insurance company licensed to do business in New York and NOT all are created equal.
Geico's rates are pretty low simply because they will not write a policy for operators with colorful driving records. Every NY policy holder just had their rates reduced 6% this month.
As someone else said, insurance companies are in business to make money. I really don't think Geico is any different than any other large major insurer.
My father has been a trial attorney since 1976 and he has extensive experience dealing with insurance companies and he said the top auto insurance companies (in his experience) are Geico, State Farm and Allstate. He has dealt with just about every insurance company licensed to do business in New York and NOT all are created equal.
Geico's rates are pretty low simply because they will not write a policy for operators with colorful driving records. Every NY policy holder just had their rates reduced 6% this month.
As someone else said, insurance companies are in business to make money. I really don't think Geico is any different than any other large major insurer.
05-06-05, 08:45 AM
#12
Lexus Fanatic
Originally Posted by edfrsd
Funny thigs is, I work right next to their big Geico building here in Poway, CA. and their employees are the worst in the area. I have many co-workers complain on how they drive.
Also, Thier parking lot is full of modified cars.. I notice tons of hondas and Mitsubishi's slammed with rims all over thier parking lot. Myabe they should apply the standards that they write about to the way they hire their employees.
Also, Thier parking lot is full of modified cars.. I notice tons of hondas and Mitsubishi's slammed with rims all over thier parking lot. Myabe they should apply the standards that they write about to the way they hire their employees.
05-06-05, 09:12 AM
#13
Originally Posted by Lil4X
Now that you mention it, I seem to remember C/D's diatribe against the "Geico Guns". It had me pretty steamed too. But there is another side to the question - a business side. I’ve never understood insurance very well, to me it is one of the black arts – but I do understand business – and having spent a small amount of time with games of chance in my past, I understand odds.
, to bail on them then they win (short term profits). I agree they walk a fine line so as not to upset too many people to drive them to leave, but isn't that the nature of the business? Another way Geico could hold onto their victims/"customers" is if people have tickets on their record from the radar/laser guns then apply for insurance at another company, then they may be put in a higher risk catagory with highter rates, again they are walking that fine line of keeping rates high enough to increase short term profits while not making too many people leave.Just my 2 cents worth...
05-06-05, 09:20 AM
#14
Lexus Champion
Originally Posted by mmarshall
GEICO does not have a double-standard here. Some of their own employees....I have known some......cannot get a GEICO policy because they do not meet the standards for the company issuing one. I remember some years ago when I had a comprehensive vandalism claim with GEICO. The girl in the claims office that answered the phone and did the schedulding told me she could not get a policy with her own company, GEICO...she was considered too much of a risk. ( She had asked my advice.....I was helping her decide on a new car and insurance for it , like I do with so many people ).
What kind of insurance would you suggest for a cash-purchased 01 solara convertible?
05-06-05, 09:34 AM
#15
Lexus Connoisseur
Sure there may be all this talk about Geico, but they have one of the highest rating in auto insurance claims nationwide. They did beat out State Farm and the AutoClub of SoCal (the company I work for). How their employees drive or what articles are written has nothing to do with the high customer service ratings/satisfaction their insureds have gotten in the last year. They are a good insurance company regardless....here's proof:
https://www.clublexus.com/forums/sho...ighlight=geico
http://www.jdpower.com/studies_jdpow...asp?ID=2004086
https://www.clublexus.com/forums/sho...ighlight=geico
http://www.jdpower.com/studies_jdpow...asp?ID=2004086