Quote:
Originally Posted by peter11
The part about paying for the first four years but getting no coverage I understand. But that's not really any different than buying an extended warranty when a car is new since it does not kick in until year 4. I guess you can put off that warranty purchase, but I imagine that most buy at the time of sale.
I am guessing you have not had this coverage long. Do you know if they charge everyone the same rate ($11 per month) regardless of the type of car? Do you have any sense if they jack up the rates ruthlessly in year 5?
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Yes, new to GEICO in the past two years so not 100% sure what happens to the premiums in year five. My guess is they stay about the same though. What a bait and switch that would be to charge premiums during the manufacturer warranty period where they have ZERO exposure only to jack them up once the manufacturer warranty expires.
My guess is that GEICO makes enough money off people who drop out before ever having a chance to make a warranty claim in years one to four. That offsets their losses in years five, six and seven to people who stick it out.
I just checked and our coverage is $30 for six months. I'm sure it is all based on zip codes. I'm not going to sweat losing $240 in the event I leave GEICO at 48 months. The potential benefits outweigh the risk.