Woman Shares Shocking Reason Behind a 57% Increase in Her Car Insurance Premiums
Amid nationwide surges in car insurance premiums, a disgruntled GEICO customer, Ayrial (@ayrial.dan), turned to TikTok to voice her concerns and announce her decision to terminate her car insurance policy. The video, garnering 1.9 million views, ignited a wave of anger in the comments section, with many expressing shared frustration over escalating car insurance premiums.
In the video, Ayrial recounts her experience with GEICO, stating that she had maintained an insurance policy with them for over three months. Initially quoted at $129, her monthly payments remained consistent until a sudden increase to $202 after the three-month mark, signaling a significant $73 surge or almost 57%.
Worried, Ayrial reached out to GEICO for clarification. According to her, a customer representative from the company attributed the hike to a decline in her driving score. This score is monitored through the insurer's DriveEasy program, which utilizes a smartphone app installed on each customer's device to track driving behavior.
Ayrial was taken aback after discovering that her driving score had been impacted by her unintentional selection of the passenger option in the app whenever she traveled with someone else. Expressing her surprise, she said she is unaware of this feature.
"That’s extra work for me. I don’t understand," she said, adding that she didn’t "read the fine print" on her policy, which explained how the safe-driving app impacts insurance rates. "Give me a base pay and that’s what I pay. If I’m not in an accident, it shouldn’t be extra. That’s like when you’re sick, you pay extra for health insurance. I’m not sick!"
Frustrated by the situation, she labeled car insurance policies as a "scam" and declared her intention to cancel her policy by the end of the month.
Ayrial's concerns struck a chord with viewers, who shared their disdain for car insurance. User @PolishPeaches suggested that insurance companies exploit statistics to justify rate hikes, essentially profiting from customers. This sentiment reflects a broader skepticism towards insurance practices, with viewers perceiving the system as a means to extract more money from policyholders.
On the flip side, some viewers advocated for expanded coverage to justify the steep prices. User @lia called for policies to encompass car maintenance expenses, while another user proposed a system akin to tax filing, where customers receive refunds for accident-free periods.
Meanwhile, data from insurance aggregator Insurify reveals a staggering 24% increase in the average cost of full auto coverage last year, with 63% of drivers reporting rate hikes. Projections suggest a further 7% rise later this year. Factors contributing to soaring premiums include driver behavior, rising labor and parts costs, reduced demand from reinsurers, and heightened natural disaster risks, as reported by Reuters.
Moreover, the COVID-19 pandemic has exacerbated these trends, driving up prices for both new and used cars and subsequently increasing repair and replacement costs.
For more such content, you can follow Ayrial (@ayrial.dan) on TikTok.