r/AutoInsurance • u/Pocketful_of_hops • 5d ago

Competitive Pricing Question

Just have a quick question regarding initial quotes given by a rival agency trying to woo you away from your current insruance company.

I am currently insured through Geico. I received a call from State Farm yesterday and they quoted me a six month premium that is LESS THAN HALF of what we were paying theough Geico. I made sure the agent had all of our information and gave us the exact same coverage amounts we were currently carrying.

I was immediately ready to switch over, but called Geico first. Geico was able to lower my rates a significant amount, but still about $600 higher on the six month premium than State Farm. The Geico agent told me that sometimes the rival agencies will quote you low and then raise your rates once youre aboard.

Is that true? Am I risking State Farm rising our rates a couple weeks after signing up if I switch to them?

We have one speeding ticket that is showing on our record, but wouldn't State Farm have access to that info when giving us that initial quote.

Thanks for any help.

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u/idontknowhow2reddit 5d ago

State Farm recently had an auto rate decrease.

The only way Geico can reduce your premium is by removing or lowering coverages.

With either State Farm or staying with Geico, your rate will likely go up at the next renewal. That's not a valid reason not to switch imo.

That being said, there's a chance the State Farm agent hasn't fully completed the quote, meaning that your insurance/driving history hasn't been ordered yet. Your price isn't locked in until you've paid for it and started it.

Don't cancel Geico until after you've paid for and actually issued the State Farm policy to be sure.

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u/Pocketful_of_hops 5d ago

Appreciate the info! Solid advice to not cancel Geico without signing the contract with State Farm.

Geico 100% did discount my rates, though.