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GEICO cancels car insurance over guns!!

Discussion in 'General Gun Discussions' started by hk-sigman, Jan 23, 2013.

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  1. hk-sigman

    hk-sigman Member

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    It does say "Commercial Insurance" right on it. Which means that this was NOT a case of the insured misrepresenting his business! Clearly GEICO cancelled him because he is in the firearms business. I find it unbelievable how many people are taking GEICO's side on this...must be insurance agents!
     
  2. MachIVshooter

    MachIVshooter Member

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    It's not a matter of taking sides. It's a matter of certain insurance companies don't do certain types of insurance, and if you misrepresent something to get the policy written, you risk having the policy cancelled or not being covered if you actually need it. the M35A2 I have that I mentioned in my last post? Farmers wouldn't cover it at all, which is why I went to state farm. I could have fudged about the vehicle, not told them what it's weight is and got a policy written for "Kaiser Jeep truck", but I guarantee at some point they'd have either discovered what it was and cancelled me or, worse, I'd end up filing a claim that got denied because I misrepresented.

    Loaded ammunition, gunpowder and primers are considered hazmat by many insurance companies (powder and primers by NTSB, NHTSA). It probably has nothing to do with guns and everything to do with transporting flammables and explosives.
     
  3. PRM

    PRM Member

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    Tried the Lizard for a short while, had real good rates. My wife's vehicle got broken into Easter weekend, 2011. We had a horrible time getting the glass and other damage repaired. The dealership body shop that was doing the work said they had more trouble getting Geico to pay their claims than any other insurance company they worked with. Changed companies as soon as the claim was settled.

    Just another affirmation. Maybe the NRA should start offering insurance :)
     
  4. blarby

    blarby Member

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    I stated as such.

    Not necessarily true. Please see #15

    Given the circumstances involved, I'd say there is a fairly good percentage chance that the insured misrepresented himself. One of the basic questions that geico asks during processing of a commercial policy over the phone ( I know- I had one for about a year) includes a question that relates specifically to the transportation or retention of hazardous materials in the insured vehicle. No, they don't include gasoline in the fuel tank. They would consider 3 5 gal cans of fuel in your trunk, or pickup bed.

    In cases where an insurance company is using its own agents- not independent producers, they cannot reject policies. They can cancel them for cause.

    If this had come across my desk as a submitted application, during the underwriting review, I very likely would have rejected it for material misrepresentation- or at the very best concealment. A call to the producer would have followed, with the premise being his understanding that we do not accept such risks- his acknolwedgement of that is expressly stated in his agency appointment, and that I'm sorry that insured must have misled him.

    If he stated anything to the contrary, it goes right to marketing- thats not my department.

    An agents job is to vet his prospects entire insured position- not just submit paperwork on behalf of the applicant- this is called "field underwriting".

    Given that its GEICO- and they use their own agents...its a little trickier. They use a marketing tehnique thats widely known as "shake n bake"- they use mass marketing to attract as much business as possible, vet the business via a basic straghtforward underwriting process to remove adverse risks ( the shake) and keep the rest via prompt issuance ( the bake). It does not have your interests at heart- it has their bottom line. This is part of the problem with stock companies versus mutual companies.

    Just because its a commercial policy, does not mean it covers every form of commerce you could conceive of.

    Unfortunately, insurance is not a simple thing, contracted in a simple world. This is why agents that sell and advise on insurance must be vigorously examined, licensed by the states they transact in, bonded, and continually educated in their constantly evolving marketplace. One of the few types of selling that has such requirements- including continuing education stipulations.
     
    Last edited: Jan 23, 2013
  5. dvdcrr

    dvdcrr member

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    The insurance industry is one of the major threats to American liberty. If they had their way you would be eating carrots three times a day in a padded room.
     
  6. blarby

    blarby Member

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    ROFL.

    I think at that point, I'll have to say I'm done.

    I've said my piece- ya'll have fun now, ya hear ?

    *passes out rolls of tinfoil*
     
  7. deadin

    deadin Member

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    You know, if you really don't like insurance companies you can always self-insure. It may take posting a very large bond, but it can be done......

    blarby, Sounds like you are in the industry, I worked for SAFECO for 20 years, Commercial Lines UW and Actuarial. The policies I used to get a real kick from were the Farm Policies. It seems all you needed was a small acreage and a chicken or two to qualify for the lower vehicle rates. We even had one that had his Rolls-Royce listed. (I would love to have seen him taking his hogs to market.:D)
     
  8. blarby

    blarby Member

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    I could put a nuclear missile silo on a farm policy- I hear ya :D
     
  9. jdh

    jdh Member

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    Who wouldn't insure my truck because it had a flat bed on it. Not because it was used in a commercial enterprise, which it was not, simply because it had a flat bed.
     
  10. Shadow 7D

    Shadow 7D Member

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    Don't forget, if they (the insurance company) can keep from paying out, legally, it's THEIR best scenario, you have been paying, and they don't have to cover you because of your breech.
     
  11. 1911 guy

    1911 guy Member

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    I gotta side with the O.P. here. Notice says reason for cancellation was vehicle is by a company associated with the weapons industry. No mention of misrepresentation, Haz-Mat, nothing. Unless GEICO comes up with something else, we have nothing but "weapons industry" to base the cancellation on.
     
  12. huntsman

    huntsman Member

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    http://www.msnbc.msn.com/id/50512123/ns/business/t/advocates-push-idea-requiring-gun-insurance/

    I like to look foward not live smugly in the past
     
  13. 627PCFan

    627PCFan Member

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  14. Double Naught Spy

    Double Naught Spy Sus Venator

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    Just what fleet of vehicles does Ed Levine have? The post card was very vague and likely will not be taken all that seriously, the gist being that he read about a cancellation online and so is cancelling his policy as well. That doesn't give Mr. Nicely much to work with or address.
     
  15. Black Butte

    Black Butte Member

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    This is not what the letter says. The issue is clearly the fact that the vehicle is connected with the firearms industry in particular.
     
  16. JohnBT

    JohnBT Member

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    www.snopes.com/politics/guns/geico.asp

    I guess the policy holder didn't avail himself of the appeal process outlined in the letter from Geico. Or return their call. Sometimes it takes a phone call or letter to straighten things out.

    I got a letter from Geico a couple of years ago about my homeowner's insurance. They said I had 10 days to put a handrail on the 3 steps on the back porch and send a pic or I'd be canceled. I called and said I'd had the policy (through Travelers originally) since 1980 and why were they bothering me now? They called me back the same day and said "nevermind".

    Maybe they were just nice to me because I've had an auto policy since 1967. Who knows.

    John
     
  17. gbran

    gbran Member

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    Cancel Geico.

    It's so easy, a caveman can do it.
     
  18. JohnBT

    JohnBT Member

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    "Cancel Geico."

    Why? For what possible reason?
     
  19. jimmyraythomason

    jimmyraythomason Member

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  20. Steve CT

    Steve CT Member

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    blarby, thanks for the informed and common sense info. I'm no expert on this and it sounds like you know what you're talking about. I think your THR post count gives you a lot more credibility than many of the people on this topic.

    GEICO has treated me very fairly for 20+ years, even when they raised my rates because my wife just can't seem to stop running into stuff. I still do business with them. Service is great, and the rates have already started dropping now that SOMEONE has found a way to avoid cars, guardrails, etc.
     
  21. bobinoregon

    bobinoregon Member

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    Dang it Blarby, stop muddling up the thread with facts, it's no fun.
     
  22. Husker_Fan

    Husker_Fan Member

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    nevermind
     
  23. blarby

    blarby Member

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    As an automobile desk and field U/W for more years than I have fingers, you could not convince me a flatbed truck wasn't used or intended to be used for commercial purposes- its just too great a risk. On top of that, its modified which most companies wont cover for liability OR physical damage.

    There are no, and have been no, trucks manufactured with a flatbed for the consumer market. They are sold as a cab chassis configuration and built to suit, or stripped of their beds and modified with a flatbed. In most states you can't buy a c/c "truck" on a personal loan, or state on a sales contract that a c/c is for personal use. Look at your salescontract for a new vehicle sometime- notice how it has two boxes for commercial, and personal, use ? Thats more than a benign gesture.

    I like Geicos' response to the snopes inquiry... It's nice to have a tiny bit of vindication once in a while :D

    Steve : YW :D
     
  24. Zak Smith

    Zak Smith Moderator Emeritus

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    The apologists in this thread disgust me. The company has responsibility for the letter and it clearly states "in conjunction with a company in the weapons industry." That is very specific and it is in writing. They deserve all the negative repercussions this brings and the policy holder doesn't owe them anything.
     
  25. Jolly Rogers

    Jolly Rogers Member

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    Well said Zak.
    Joe
     
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