My car insurance is handled by Geico, which means every six months I pay the premium, and a few weeks later get a check for the total sum of 400 US cents. First time that happened, I thought my premium was adjusted down and Geico was just returning the balance (it happens). Then the second time, and the third time, and eventually it clicked.
At some point in the past, owned to a few points on my license and a crazy premium to match my driving habits, I enrolled in Geico’s 6 payment plan. When you’re on a multi-payment plan, they charge an extra $4 on each individual payment.
Years ago my premium landed back on earth, and I stopped using the payment plan. (There’s another story there involving Progressive, and why I won’t use them ever again) I guess I’m still billed for the $4 payment plan luxury, but since I pay it all in one go, they refund me for the surcharge. Kind of annoying having to cash that check every six months (can’t they just use it as forward balance?)
Now for today’s little surprise. I made a change on my policy, bumping up the premium by $89.97. Everything went smoothly, and like clock work Geico e-mailed the new policy documents, along with an updated bill for the remaining balance. That comes to a total of $89.97, if I decide to pay once under the one-payment plan.
But what if I decide to pay once under the two-payment plan? That would be one payment of $93.37. How about one payment under the four-payment plan? Also $93.37. At least the six-payment plan offers the possibility for splitting the bill in two payments.
I sleep better at night knowing that some of my premium goes towards mailing checks to compensate customers for unnecessary charges.
Tom B.
Assaf