Why did my GEICO premium increase by 40%?

When I called GEICO about my renewal, they said they found a speeding ticket that was not accounted for before. The policy covers me, my wife, two children, and five vehicles, so one speeding ticket seems like a minor issue. Why would the increase be so significant?

Answer
“Rate increases can be incredibly frustrating! There are a variety of rules surrounding car insurance rates. The renewal period allow insurance companies to reassess and re rate policies.
While 40% is a substantial rate hike with GEICO, it’s not unheard of in the car insurance world.
With several people and cars on one policy, there are a lot of factors for the insurance company to consider. A rise in claims in the area where you live or a statewide mandate could increase your premium. Every company has a unique rating system, so even one ticket could potentially raise your rate.
That said, you have options! Since you’re unhappy with your renewal price, shop around. You may find a lower rate with another company. You can also use the Jerry app. Jerry compares rates from up to 50 providers at once, giving you the lowest price in seconds! And the best part–Jerry does this for free.”
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Sophie Newman
Answered on Sep 14, 2021
Sophie Newman is a writer from California. Her hobbies include brewing her own kombucha, riding horses, and taking long road trips.
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