I am here to tell you GEICO does not always save you money. One does not want to waste a single dollar in an industry as competitive as purchasing insurance. I want to relate an experience I had with a GEICO phone representative trying to get a better offer on our homeowners insurance policy than the renewal offer we received from Farmers.
The Farmer’s renewal offer was an annual premium of $710 for $183,000, $73,0000, $137,000, and $18,000 for Dwelling, Loss of Use, Personal Property(Contents), and Separate Structures coverage respectively.
We were impressed that annual premium did NOT increase from last year even though Farmers significantly increased coverage in the four mentioned areas from the previous year! It was easy to see we were getting added value without having to tediously read through the renewal documents, declaration page, or the detailed reconstruction cost estimates.
BUT, it never hurts to shop around to see if you can get a better deal, so we got GEICO on the horn and gave them the low down on our wood framed masonry home loaded with security features and fire/smoke alarms. The personable agent cranked the numbers and spit out an annual premium of $911, $200 more than than the Farmer’s offer! The GEICO phone rep wanted to know what the Farmers premium was and I politely replied I was not interested in continuing the conversation since I felt I had been high balled
The GEICO agent was still speaking as I hung up the phone realizing the Farmers offer for one year of hazard insurance was likely the best deal I was gonna get. I believe Farmers understands and researches small town markets much better than GEICO and probably beats up on them pretty good in towns, say, less than 50,000 population. GEICO probably does not care as long as they dominate major metro markets.