HI everyone. I received a Geico Bill advising I owe them more money after canceling with them. Here is what I do understand about insurance.
1.) Your policy starts on the 01/01/26 and you pay basically your monthly amount quoted to get the policy started. You drive for that month and you are covered.
2.) 2nd month comes due 02/01/2026. You now pay again and you are covered to drive for the 2nd month.
3.) 3rd month comes 03/01/2026 but you decide did not pay. Geico sends a email advising you have so many days or your policy will be canceled. (usually 10 days). You move to a different company due to a better rate and decide not to pay Geico the 3rd payment on a 6 month policy.
MY QUESTION/CONCERN
Now how can GEICO send you demand for payment for the full amount of the 3rd month, If they did not insure you and canceled your policy due to non payment. Insurance is pay then drive, not drive and then pay. The only payment back to GEICO that would be fair could possibly be the 10 day grace period and not a full month. I am sending this to the dept of insurance within my state to get a answer.
IS Geico ripping off consumers?? Lets talk about it…….
byu/CardiologistSea4273 inInsurance
Posted by CardiologistSea4273
4 Comments
If you don’t initiate a cancellation the policy will provide coverage until they cancel the policy for non pay. What date did you cancel the policy? Not what date did the policy cancel for non-pay.
Depends on your billing structure. It’s generally not, total premium/6 month term=monthly amount. Most of the time it’s pro-rata, where you pay something like 25% of the total premium to start a 6 month policy, then have remaining 4 payments of 18.75%. Then upon cancelation you are refunded for the total number of unused coverage days from cancelation effective date.
If you believe that a company as big as GEICO is doing something outside your agreed upon contract, you’re mistaken. Department of insurance will do nothing for you. You just have a misunderstanding of how the billing works.
You are absolutely wasting your time and the insurance commissioners office’s time as well. You don’t understand the billing, it’s all entirely automated and the odds of something shady going on are effectively zero. Stop.