Geico is dropping my 360 insurance coverage spontaneously | FerrariChat

Geico is dropping my 360 insurance coverage spontaneously

Discussion in '360/430' started by MikeR397, Apr 11, 2012.

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  1. MikeR397

    MikeR397 Formula 3

    May 9, 2010
    1,469
    SE Michigan
    #1 MikeR397, Apr 11, 2012
    Last edited: Apr 11, 2012
    I promised Geico I was going to share this on the car forums, so I'm sharing...

    I got a letter from Geico that they are dropping my insurance coverage on my 2001 360 becuase "to keep our rates low as possible...we have to tell a policyholder we cannot continue insuring...b/c some cars, becuase of thier performance characteristics or type of construction, do not fit into our pricing structure. The 2001 Ferrari is such vehicle." So, they just decided they didn't want to insure the 360 anymore past the first 6 months since I bought it, and coverage will expire once my first 6 month term expires.

    Little background: I have coverage on 2 other cars with them, Infiniti and Porsche turbo, both of which they have no problem continuing insurance on (despite the Porsche being a hell of a lot faster than the Ferrari if it's a performance argument, and not too far off in value). I also have renters insurance with Geico for 2 years. I've never been in an accident or submitted any insurance claim, ever. Full disclosure: I do have one minor (sub 10mph over) speeding ticket on my record about every 12-15 months, 2 points on current driver's record, and the most recent ticket being 4 months ago for 49 in a 45 with no points (seriously, and I even fought it in court!) so maybe 3 minor speeding tickets in the last 4 years. I'm 27 years old.

    I spent almost 2 hours today speaking with different supervisors, underwriting, ect, and was absolutely unable to change thier mind. I placed 3 seperate calls into customer service and underwriting directly, trying 3 seperate times. It was ultimately underwriting's decision. I was adamant that I know they insure 360's for other drivers, other much newer more expensive Ferrari's, new Mercs and BMW's and GTR's and Vettes with much higher values, and am baffled what thier problem with me is. They refused to tell me other than they decided not to provide coverage. I also was clear that if they do not insure the Ferrari, I will discontinue all business with Geico, auto and rental insurance, and find another insurer for everything for myself, as well as for my fiancée who switched to Geico a year ago for her 2011 Jeep Liberty. They did not care one bit, were not sympathetic, and essentially acted like drones repeating themselves without ever really articulating their problem with providing coverage.

    Finally, I promised them that if they were unable to give me any sort of justifiable reason for why they would just drop the Ferrari 360 from coverage when I know they do insure this type of car, I would be sharing this story on the car forums as well as with any other exotic owner who brings up insurance with me so that they can be informed how Geico conducts itself and that Ferrari owner's with thier coverage may expect to unexpectly just get dropped.

    Alright, time to get some new quotes! Unfortuantely, I do think Geico was dramatically cheaper insurance for me than what I'm going to find elseware.
     
  2. MikeR397

    MikeR397 Formula 3

    May 9, 2010
    1,469
    SE Michigan
    By the way, I realize Geico has a right to chose who they do business with. No problem. I just felt they were acting like idiotic drones and not treating me like a human being. I promised I would comment on thier actions today on the car forums, so I did.

    I'm also pissed that they targeted Ferrari's to be a PITA about, and the letter mentions "performance" and not "cost or value", and yet they still want to insure my 966tt that has 25% more power.
     
  3. TxEddie1111

    TxEddie1111 Formula Junior

    Oct 16, 2011
    297
    Liberty Mutual has treated me right through Porsches, Maseratis, Ferrari's, MB's and a host of others.

    The Masterati is the only one they balked at?
     
  4. TXB4Z

    TXB4Z Karting

    Feb 25, 2009
    72
    If you shop at Walmart, you get Walmart service.
     
  5. MikeR397

    MikeR397 Formula 3

    May 9, 2010
    1,469
    SE Michigan
    Probably true, and a good comparison of Geico to Walmart.

    I'll call Liberty Mutual, AllState, maybe StateFarm if I want to try "Kmart" soon. I have coverage until May 17, so some time. I do think I'l need to switch coverage on all my cars in order to get the lowest total price, rather than just finding coverage for the Ferrari elseware and keeping the other two with Geico. Plus as a matter of principle, I don't want to give Geico my business anymore.

    I'm not messing with Hagarty. They must hate young people b/c thier quote for just Ferrari coverage was 2x the price I pay for all three cars with Geico and they even had mileage restrictions!
     
  6. m.roberts

    m.roberts Formula Junior

    Nov 2, 2009
    907
    USA
    +1
     
  7. wingfeather

    wingfeather F1 Rookie

    Feb 1, 2007
    3,653
    rock bottom
    Sorry to hear this. The good news is there are better companies out there.

    FYI do NOT patronize Progressive! They are encouraging the use of an ODBII tracker (acceleration, top speed, wheel spin) to record how "safe" you drive. If they get enough business, this could mean that at some point the industry requires these Nazi devices for all drivers.
     
  8. KasedyT

    KasedyT Karting

    Aug 23, 2006
    68
    NY
    Travelers had no prob insuring Lamborghini, multiple AMGs, Multiple Vettes, High Powered Boats, etc....you name it and they insured it and they are very reasonable and great to deal with....at least they have been in my experience.
     
  9. hardtop

    hardtop F1 World Champ

    Jan 31, 2002
    11,285
    Colorado
    Full Name:
    Dave
    I pay about 900/year for my 430 with State Farm. Give them a call.

    Dave
     
  10. djantlive

    djantlive Formula 3

    Jun 30, 2005
    1,015
    Take your business somewhere else. You deserve better.

    I did a comparison of reputable insurance companies out there that cover exotics. Liberty mutual, State Farm and Amica came on top. Allstate, and all the other boutique shops like Hagerty, Leeland etc were either too expensive or have too many restrictions on use. USAA is great also but they still want you to be affiliated with armed forces.
     
  11. BLAMPEE

    BLAMPEE Man Card Status: Never Issued

    Damn...

    I have Geico for my 355 and Lexus IS, and their rates are significantly cheaper than every one else I looked at.

    I don't have any tickets in the past three years but did have 3 speeding tickets on my record until 2011.

    I hope I don't get the same call. :(
     
  12. netman

    netman Formula 3

    Jun 17, 2008
    1,905
    OC SoCal
    I am sorry to hear about your experience but I have been a Geico customer for 16 years without issue. They insure all 5 of our cars of which one is a 360 spider.
     
  13. MikeR397

    MikeR397 Formula 3

    May 9, 2010
    1,469
    SE Michigan
    #13 MikeR397, Apr 12, 2012
    Last edited: Apr 12, 2012
    This is exactly my point. I've had Geico for years as well, added the 360 in Oct to my policy. I have made no claims, no accidents, but did receive a 4mph speeding ticket with no points on my license about 4 months ago. No other issues or changes to my insurability profile since adding the car in October. Then the letter shows up saying they are dropping coverage because the 360 is a "performance car" that does not fit within thier pricing model. This is a lie...

    The letter says:

    "This action has been taken for the following reason(s): To help keep our rates as low as possible, we occasionally have to tell a policyholder that we cannot continue insuring a particular vehicle becuase we feel it is necessary to protect the interests of our customers as a group. Certain vehicles, either because of thier performance characterists or type of contruction, do not fit into our pricing structure. The 2001 Ferrari is such vehicle."

    "This action is no reflection upon you as a policyholder. We are sorry for any inconvenience this matter may cause you, but you will be covered until the 5/7/12 renewal only for this vehicle. This action has no effect upon the 2004 Infiniti and the 2002 Porsche and you will recieve renewal paperwork on it shortly."

    "We are sorry that our present underwriting standards make it necessary for us to take this action. However, since each company maintains different requirements, your insurance may be acceptable to another company."

    The bolded (emphasis added) is absolutely false and misleading. In this letter they are explicitly stating the reason is NOT based on me as an individual policyholder, but rather based upon the type of car itself. Netman, as your datapoint also confirms, among numerous others insuring 360's with Geico, Geico does indeed insure Ferrari 360's, they just will not insure it for me and they are lying about the reason for not doing so.

    Perhaps another phone call to thier legal department is in order to ask if they are in the habit of presenting timely paying customers false and misleading reasons for [partial] policy termination? Or perhaps a letter drafted to thier executive offices. I don't even care about staying with them that much, I just want them to have to explain their actions at this point and I desire to relay thier subsequent efforts, positive or negative, to the public car forums. To be clear, I am not arguing I have a right to be insured by Geico, just that they are not being forthcoming about this random decision and that upsets me and it should be noted as bad business practice at a minimum.

    ETA: I just noticed also that there is a mistake in their letter. The actual end of coverage is 5/17/12, and this is stated at the top of the letter, yet the quoted language I provided above lists 5/07/12 as the renewal date. This is obviously indicative of an individual writing this letter, and not a standard form. There is an individual name from underwriting at the bottom, as well as her signature.
     
  14. Need4Spd

    Need4Spd F1 Veteran

    Feb 24, 2007
    6,644
    Silicon Valley
    Move all of your insurance business to another carrier, like Liberty Mutual, and never do business with GEICO again. That gecko is annoying anyway, and the decision is so easy, even a Caveman would do it.
     
  15. Innovativethinker

    Innovativethinker F1 Veteran
    Silver Subscribed

    Aug 8, 2009
    8,596
    So Cal
    Full Name:
    Mark Smith
    In general, I find it almost impossible to get to a decision maker in any large company.

    I'm beginning to think there is a computer program spitting out company policies instead of someone actually taking ownership of it.
     
  16. Ricambi America

    Ricambi America F1 World Champ
    Sponsor Owner

    My guess would be (and obviously I'm no insurance expert) that you're young, unmarried, have a Ferrari -- which is high horsepower and expensive to repair, and have points on your license. I think it is simply a game of numbers, and for Geico it didn't work.

    State Farm, has solid pricing and good customer service. I have been satisfied with their service for 25+ years.
     
  17. Philcat

    Philcat Karting

    Mar 8, 2012
    142
    MD
    Full Name:
    Phil
    I agree, I think it's got alot to do with age and points.

    I have all of my vehicles (and house) insured with State Farm, including the 360.
     
  18. E60 M5

    E60 M5 Moderator
    Moderator Owner

    Jan 2, 2006
    8,061
    Wash DC area
    Full Name:
    Robert
    Try Erie Insurance, they are great and I switched to them after 27 years with USAA. They provide much better coverage at a very low cost.
     
  19. Zinger

    Zinger Formula 3

    Apr 11, 2009
    1,894
    Leesburg, Va
    Full Name:
    Ryan M
    #19 Zinger, Apr 12, 2012
    Last edited: Apr 12, 2012
    I have been with Geico for 18 years. Customer Service has been great and the rates are very competitive. I currently have 3 cars with Geico including a F430 and have had zero issues with Geico Insurance.

    In those 18 years I had 1 minor accident in a Range Rover back in 2005 (not my fault)

    I also have had very few tickets on my record with Geico (knock on wood)

    I think history, driving record, age, region all play a factor.....

    For the record I shopped All State, Progressive, and State Farm when I purchased my F430 10 months ago and they ALL were more than Geico offered me for a multi car program.

    I'm sticking with Geico, they are a great company IMO
     
  20. vrsurgeon

    vrsurgeon F1 World Champ
    Silver Subscribed

    Dec 13, 2009
    15,864
    Charleston, SC
    Full Name:
    Curt
    Above is probably the REAL reason why you were dropped.

    Also consider Allstate. Gave me a reasonable rate for my 360 for past year and a half.
     
  21. Trent

    Trent Formula 3

    Dec 10, 2003
    2,013
    Indialantic, FL
    Full Name:
    Trent
    Hey Mike, I dont see why you are upset. Geico fulfilled their obligation in every way, providing you coverage for the period of time specified in your contract. Now they want to date other people.

    Its not like they are denying a claim, costing you financial or vehicular hardship. Finding insurance will set you back a few hours and is an inconvenience, but probably less time than creating this thread.
     
  22. PhilNotHill

    PhilNotHill Two Time F1 World Champ
    Owner

    Jul 3, 2006
    27,855
    Aspen CO 81611
    Full Name:
    FelipeNotMassa
    State Farm has no problem insuring my 2002 360 Spider. They also insure our 2011 Porsche and two turbo Subarus. And all our houses/condos.

    When we have the sports cars dormant in the winter they take off the liability coverage. If I want to drive I call them when I go out and they put the liability coverage back on. Then take it off after I get back to the garage. Great service. I recommend them.
     
  23. Ferraripilot

    Ferraripilot F1 World Champ
    Owner Project Master

    May 10, 2006
    17,171
    Atlanta
    Full Name:
    John!
    I am defense counsel for an insurance company and can tell you without a doubt that Geico are a group of cheap and slimy operatives when it comes to properly defending their insureds. This is common practice with most larger/budget insurance carriers who spend more an advertising than anything else. Farmers employs similar practices with their defense. Both hire defense with very little experience or have house counsel who have simply been instructed to not settle for anything reasonable unless the file is litigated, hence Geico has more litigated files than any carrier in the country.

    Regarding your Ferrari coverage, Geico's actuaries probably ceased offering coverage for any exotic car and are advising all their insureds. Exotics cost in the neighborhood of 10x that of any normal car to repair thus they could not charge a proper premium to continue servicing such policies. I'm sure Geico didn't have many Ferrari policies which is why they are being killed with the few they have. Again, this is a very common occurence with large insurance carriers who sell and service a terrible product, have poor customer retention, and who spend more dollars on advertising than anything else.


    A few figures for you. Geico has a retention figure of 67% last I heard for customers who have had a claim. USAA is a class leader in this with a figure in the 98%+ range. A typical 'good' insurance carrier retention figures are 90%+, so that gives you an idea of what Geico is and the customer they are shooting for. Be glad you don't have to deal with them any longer.
     
  24. Shane86

    Shane86 Karting

    Dec 2, 2011
    172
    North Carolina
    Full Name:
    Shane
    We use Geico as well for all our insurance. A few years back I had a bad run with a Porsche and and Harley stolen from my garage. I was paid in full for both in approx 20 days after the event and investigation was complete.....so far so good for us.
     
  25. switchcars

    switchcars Formula 3

    Jul 28, 2005
    2,216
    Full Name:
    Doug
    Sorry to hear Mike.

    Give Westfield a call. They are an Ohio company, and have great service and are not scared of the high-end cars. We have our company insurance with them - great rates, custom policy, and personal service.
     

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