GEICO left NJ in the late 70s. They actually hand delivered their authority back to the commissioner. Looks like it’s politics as usual. I guess McGreevey can’t use this for his re-election though.
It seems I remember a time when GEICO left or had to leave New Jersey. I read the body of this article hopeing to gain some insight into the history of GEICO in New Jersey.
Actually….GEICO has returned to New Jersey due to the state recently changing regulation that used to require insurance companies to write policies for all drivers. GEICO has deemed some drivers to be a risk to great to write for and NJ used to ban this practice. What kind of exemption and sweet heart deal can an insurance company located outside of NJ get? Or was that just a factless accusation?
The reason why GEICO left NJ (and most other big insurance companies) is because of the way the medical laws were when it came to an auto accident. It used to be that if someone was injured in an auto accident, and as long and their injury was due to an auto accident, the insurance company would have to keep paying the medical bills. This makes it so crooked doctors can keep getting paid and the insurance company gets defrauded. Most of the big insurance companies left due to the same reason.
Since this law has changed, that’s why GEICO is coming back.
When Mercury came into the State, they were given certain exemptions from the rules to get them here.
They could use credit as a basis to rate when others could not.
They were exempt from ‘take all comers’. (Take all comers is going away, but is not gone yet).
They were allowed to do things the companies already in the state could not. There are sweetheart deals, whether we know about them or not. I am sure Geico got some concessions. Politics as usual as someone else said.
Geico usually quotes low limits ($15/30/5, $15,000 PIP) unless the consumer asks for higher. I feel this is a disservice to the customer. Many people like saving that 15%, but what is the potential cost? Their home, if coverage is not sufficient to cover a loss.
There is also the idea that a young person with no home needs lower coverage…but what happens to that person when he/she puts someone in the hospital and has $15,000 in coverage?
Actually, GEICO will only quote what you want them to Quote. If you are a homeowner, the quote is almost always at least 100/300/50. If someone says \”I want the lowest just to be legal\” then, of course, they will write lower coverages. GEICO does counsel would-be policyholders on coverages, and does suggest higher limits.
GEICO left NJ in the late 70s. They actually hand delivered their authority back to the commissioner. Looks like it’s politics as usual. I guess McGreevey can’t use this for his re-election though.
It seems I remember a time when GEICO left or had to leave New Jersey. I read the body of this article hopeing to gain some insight into the history of GEICO in New Jersey.
How about the details? You KNOW they got a sweet heart deal and exemtions the size of a battleship to get them in here… give us the real deal, please.
thank God!
Actually….GEICO has returned to New Jersey due to the state recently changing regulation that used to require insurance companies to write policies for all drivers. GEICO has deemed some drivers to be a risk to great to write for and NJ used to ban this practice. What kind of exemption and sweet heart deal can an insurance company located outside of NJ get? Or was that just a factless accusation?
The reason why GEICO left NJ (and most other big insurance companies) is because of the way the medical laws were when it came to an auto accident. It used to be that if someone was injured in an auto accident, and as long and their injury was due to an auto accident, the insurance company would have to keep paying the medical bills. This makes it so crooked doctors can keep getting paid and the insurance company gets defrauded. Most of the big insurance companies left due to the same reason.
Since this law has changed, that’s why GEICO is coming back.
hot country mama and papa walk side by side say hi to kids big kiss
When Mercury came into the State, they were given certain exemptions from the rules to get them here.
They could use credit as a basis to rate when others could not.
They were exempt from ‘take all comers’. (Take all comers is going away, but is not gone yet).
They were allowed to do things the companies already in the state could not. There are sweetheart deals, whether we know about them or not. I am sure Geico got some concessions. Politics as usual as someone else said.
Geico usually quotes low limits ($15/30/5, $15,000 PIP) unless the consumer asks for higher. I feel this is a disservice to the customer. Many people like saving that 15%, but what is the potential cost? Their home, if coverage is not sufficient to cover a loss.
There is also the idea that a young person with no home needs lower coverage…but what happens to that person when he/she puts someone in the hospital and has $15,000 in coverage?
Nick
Actually, GEICO will only quote what you want them to Quote. If you are a homeowner, the quote is almost always at least 100/300/50. If someone says \”I want the lowest just to be legal\” then, of course, they will write lower coverages. GEICO does counsel would-be policyholders on coverages, and does suggest higher limits.