GEICO: previous insurance required?

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Does Geico require a new auto customer have previous insurance?  If so, for how long, and what documentation do they require?  If not, is there any difference in rate with or without? 

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The Slimy Lizard is upset OP didn't call him first.

alamo11 (Mar. 08, 2017 @ 1:35p) |

I actually ended up with Geico again this time around when I got back from NC. They were within $20 of the lowest rate ... (more)

RedWolfe01 (Mar. 08, 2017 @ 4:25p) |

Most preferred insurance companies require 6-12 months of prior insurance. Some will decline your business without that ... (more)

InsuranceGuy (Mar. 10, 2017 @ 12:31a) |

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When you called and asked, what was their answer?

tennis8363 said:   When you called and asked, what was their answer?
  
Snark is nice.  I don't want to call.  That's why I'm asking the good people here.

I've never been required to provide documentation. But I've also never had a lapse in coverage (this might be relevant because I figure they might be doing some checking in the background).

If you've never had insurance they'll want to know why. Will you pay more for insurance than somebody who's had insurance for 10 years? Yes. Just like you pay more for newly licensed drivers than somebody who's been licensed and without a ticket for 5 years or even ten years.

If you're licensed AND have owned the vehicle, then the question will be why wasn't it insured, and proof of condition.

mwarrior said:   If you've never had insurance they'll want to know why. Will you pay more for insurance than somebody who's had insurance for 10 years? Yes. Just like you pay more for newly licensed drivers than somebody who's been licensed and without a ticket for 5 years or even ten years.

If you're licensed AND have owned the vehicle, then the question will be why wasn't it insured, and proof of condition.

  
Owner/driver is 23, has been licensed 6 years, clean record, has been driving parent's car but not listed on their insurance.  Moved to new state, will be buying new car.

RBirns said:   
mwarrior said:   If you've never had insurance they'll want to know why. Will you pay more for insurance than somebody who's had insurance for 10 years? Yes. Just like you pay more for newly licensed drivers than somebody who's been licensed and without a ticket for 5 years or even ten years.

If you're licensed AND have owned the vehicle, then the question will be why wasn't it insured, and proof of condition.

  
Owner/driver is 23, has been licensed 6 years, clean record, has been driving parent's car but not listed on their insurance.  Moved to new state, will be buying new car.

  So "owner" was committing insurance fraud?

I don't really understand what you are saying, OP. You've been driving a car owned by your parents but not listed on their insurance. Were you living in the same household?

BrianGa said:   I don't really understand what you are saying, OP. You've been driving a car owned by your parents but not listed on their insurance. Were you living in the same household?
  
The car was listed, but not the driver.  Same household, parents just never added the driver.  Insurance covers the car and whoever is driving it.

alamo11 said:   
RBirns said:   
mwarrior said:   If you've never had insurance they'll want to know why. Will you pay more for insurance than somebody who's had insurance for 10 years? Yes. Just like you pay more for newly licensed drivers than somebody who's been licensed and without a ticket for 5 years or even ten years.

If you're licensed AND have owned the vehicle, then the question will be why wasn't it insured, and proof of condition.

  
Owner/driver is 23, has been licensed 6 years, clean record, has been driving parent's car but not listed on their insurance.  Moved to new state, will be buying new car.

  So "owner" was committing insurance fraud?

  Not so sure that is fraud, really. Maybe the person drove only a handful of times. As long as the vehicles they were driving had proper coverage and their owners gave them permission to use the vehicle, I don't see an issue here. It's all about having permission to use the vehicle, at least according to Geico in NYS when my wife totaled my step father's car (long story, don't ask).

RBirns said:   
BrianGa said:   I don't really understand what you are saying, OP. You've been driving a car owned by your parents but not listed on their insurance. Were you living in the same household?
  
The car was listed, but not the driver.  Same household, parents just never added the driver.  Insurance covers the car and whoever is driving it.

  I had an accident with someone like "owner". It was a pretty big accident, and insurance baulked at paying. Took quite a bit legal pressure to get them to pay up, and insurance dropped "owner" and his parents like a hot potato afterwards. It's material misrepresentation even with insurance "following" the car and not the driver.

jaytrader said:    Not so sure that is fraud, really. Maybe the person drove only a handful of times. As long as the vehicles they were driving had proper coverage and their owners gave them permission to use the vehicle, I don't see an issue here. It's all about having permission to use the vehicle, at least according to Geico in NYS when my wife totaled my step father's car (long story, don't ask).
 

I believe auto insurers require the policyholder to identify everyone who uses the vehicle routinely. Nonetheless, you are absolutely right that the term "insurance fraud" is overused in this forum. Some of these sloppy situations may very well result in coverage being declined, but insurance fraud is something more. 

RBirns said:   
BrianGa said:   I don't really understand what you are saying, OP. You've been driving a car owned by your parents but not listed on their insurance. Were you living in the same household?
  
The car was listed, but not the driver.  Same household, parents just never added the driver.  Insurance covers the car and whoever is driving it.

I think you just indicate on the form that you have not been previously a named insured on an auto policy. It will probably have only a small effect on your rate.

alamo11 said:   I had an accident with someone like "owner". It was a pretty big accident, and insurance baulked at paying. Took quite a bit legal pressure to get them to pay up, and insurance dropped "owner" and his parents like a hot potato afterwards. It's material misrepresentation even with insurance "following" the car and not the driver.
RBirns said:   The car was listed, but not the driver.  Same household, parents just never added the driver.
Insurance covers the car and whoever is driving it.

But all members of household must be specifically declared, and then either included or excluded from the policy.
So yeah, material and intentional misrepresentation is basically insurance fraud.

RBirns said:   
BrianGa said:   I don't really understand what you are saying, OP. You've been driving a car owned by your parents but not listed on their insurance. Were you living in the same household?
  
The car was listed, but not the driver.  Same household, parents just never added the driver.  Insurance covers the car and whoever is driving it.

You got lucky.  You got your license when you were 17 and have been driving your parents' cars around for the last six years?  I'm surprised your insurer didn't pick up on the fact that another licensed driver was in the household through a routine mining of driver license data.  If there were a significant claim during that period, your (parents') insurer would have most likely have tried to deny coverage.

Going forward, I would just say when applying for insurance that you've never owned a car before so you've never needed insurance.  Be cautious about answering any other questions - you might be walking a fine line between being evasive and being dishonest.  You don't want to misrepresent anything that would give an insurer any reason to deny coverage down the road.

xoneinax said:   
alamo11 said:   I had an accident with someone like "owner". It was a pretty big accident, and insurance baulked at paying. Took quite a bit legal pressure to get them to pay up, and insurance dropped "owner" and his parents like a hot potato afterwards. It's material misrepresentation even with insurance "following" the car and not the driver.
RBirns said:   The car was listed, but not the driver.  Same household, parents just never added the driver.
Insurance covers the car and whoever is driving it.

But all members of household must be specifically declared, and then either included or excluded from the policy.
So yeah, material and intentional misrepresentation is basically insurance fraud.

I've had policies in effect for over ten years with the same insurer.  They auto-renew, and I don't ever recall getting a phone call or otherwise attesting to any new drivers in the house.  If I didn't call them, they wouldn't have known that my kids got their licenses during that time.  I would be surprised if they weren't mining the data from the DMV on their own though, but apparently not in the OP's case.  I'm sure there is a clause somewhere in the policy requiring me to inform them, but I can very easily see how a new driver would go undiscovered, at least until there was a claim.

BrianGa said:   
RBirns said:   
BrianGa said:   I don't really understand what you are saying, OP. You've been driving a car owned by your parents but not listed on their insurance. Were you living in the same household?
  
The car was listed, but not the driver.  Same household, parents just never added the driver.  Insurance covers the car and whoever is driving it.

I think you just indicate on the form that you have not been previously a named insured on an auto policy. It will probably have only a small effect on your rate.

  
Thanks, appreciate the response.  I would love something more definitive if someone has actual or professional experience.  Any auto insurance agents around?

The answer to OP's question depends on the State.  Some States (e.g., California) do not allow no prior insurance to be factored into rates or applications by insurers.  http://www.consumerwatchdog.org/feature/no-prior-insurance-rule

MrKlick said:   The answer to OP's question depends on the State.  Some States (e.g., California) do not allow no prior insurance to be factored into rates or applications by insurers.  http://www.consumerwatchdog.org/feature/no-prior-insurance-rule
  
State will be Missouri

Nothing bad will happen if you pick up the phone, really.

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Pick up the phone
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RBirns said:     
Thanks, appreciate the response.  I would love something more definitive if someone has actual or professional experience.  Any auto insurance agents around?

  
I would love to assist you!*

You can call (800)207-7847 (Geico Auto Insurance Sales)

(* Providing the phone number is the limit of my assistance. I do not work for Geico.)

 

NotSoHard said:   
RBirns said:     
Thanks, appreciate the response.  I would love something more definitive if someone has actual or professional experience.  Any auto insurance agents around?

  
I would love to assist you!*

You can call (800)207-7847 (Geico Auto Insurance Sales)

(* Providing the phone number is the limit of my assistance. I do not work for Geico. )

 

  

Sure, why not.  I'll call.  I have 15 minutes.  Meanwhile, real knowledge of other insurers would be helpful too.  Any agents out there?

RBirns said:   
NotSoHard said:   
RBirns said:     
Thanks, appreciate the response.  I would love something more definitive if someone has actual or professional experience.  Any auto insurance agents around?

  
I would love to assist you!*

You can call (800)207-7847 (Geico Auto Insurance Sales)

(* Providing the phone number is the limit of my assistance. I do not work for Geico. )

 

  

Sure, why not.  I'll call.  I have 15 minutes.  Meanwhile, real knowledge of other insurers would be helpful too.  Any agents out there?

  Secret Agent here.  How may I help you?

NotSoHard said:   
RBirns said:     
Thanks, appreciate the response.  I would love something more definitive if someone has actual or professional experience.  Any auto insurance agents around?

  
I would love to assist you!*

You can call (800)207-7847 (Geico Auto Insurance Sales)

(* Providing the phone number is the limit of my assistance. I do not work for Geico. )

 

  The Slimy Lizard is upset OP didn't call him first.

I actually ended up with Geico again this time around when I got back from NC. They were within $20 of the lowest rate and it was painless to "move" the policy, since NC usually requires written notification to cancel. Moving within the company gets around that particular PITA. If it had been more expensive then I would have dealt with it.

Combining motorcycles was nice, my Texas policy went up $70 and my NC bike policy was over $300 a year so I netted $230 on that one. Made up for the $160/year increase in my Explorer insurance.

Most preferred insurance companies require 6-12 months of prior insurance. Some will decline your business without that length of insurance, others will simply charge you 20-40% more as they view you are more risky.

That said, you can probably get on at progressive in one of their non-standard tiers (higher risk) at a higher rate then change carriers after 6 or 12 months to get a better rate so you are not penalized for your lapse in coverage.



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