‘Car insurance is a scam’: Frustrated driver slammed GEICO for 56% rate hike after she failed to read the ‘fine print’ — here's how to find your next policy

‘Car insurance is a scam’: Frustrated driver slammed GEICO for 56% rate hike after she failed to read the ‘fine print’ — here's how to find your next policy
‘Car insurance is a scam’: Frustrated driver slammed GEICO for 56% rate hike after she failed to read the ‘fine print’ — here's how to find your next policy

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An angry driver has taken to TikTok to brand car insurance a “scam” after she received a huge increase to her monthly bill — despite not having any accidents.

TikTok user Ayrial (@ayrial.dan) vented her frustration on the video-sharing platform after her car insurance bill with GEICO jumped from $129 to $202 — a whopping $73 (or 56%) monthly increase.

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When she called up GEICO — which is owned by Warren Buffett’s Berkshire Hathaway — she was told the hike was due to her poor performance in the insurer’s DriveEasy program.

This tipped her over the edge, causing Ayrial to declare “car insurance is a scam” and that she is “canceling [her policy] this month.”

Here’s what happened — and why the cost of auto insurance keeps going up.

Bad driving habits

Most drivers who buy car insurance from GEICO are able to participate in DriveEasy, a safe-driving program that rewards or penalizes drivers based on their driving behavior.

Using sensors in your phone, DriveEasy automatically logs your driving behaviors — like how fast and far you drive, how hard you brake and how often you use your phone — and calculates a safe driving score. GEICO then factors your score into your insurance rate (either with a discount or a price hike) upon renewal.

This is supposed to incentivize drivers to practice safe habits on the road — but it can also catch bad drivers, as Ayrial found out. Her problem with that was, as she claimed in her TikTok, she wasn't always the one driving.

Ayrial might be better off switching car insurance companies — here's why.

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A silver lining

While Ayrial’s car insurance rate increase was allegedly deemed a direct result of her driving score, many other drivers across the country have seen frustrating rate increases in recent years as a result of broader insurance market trends.

There are several factors driving up the cost of car insurance — from an increase in accident claims, litigation and medical costs for insurers to pay out (and price for), to higher repair costs due to inflation in the price of new and used vehicles, car parts and labor.

Auto insurance costs jumped by 22.2% last month from a year earlier, according to the latest Consumer Price Index data, new vehicle prices actually declined 0.1% and used prices dropped 2.2% over the same period.

Despite the rising costs, BestMoney.com can help you find the best auto insurance prices near you so you can make sure you’re getting the lowest price and the coverage you need.

When you fill in a bit of information about yourself, BestMoney.com will provide you with a list of the most affordable car insurance options near you so you can get the best rate possible.

While you’re at it, saving on other essential expenses like home insurance — which have also gone up in price — is made easy with Official Home Insurance. Based on recent data, insurance company Insurify, predicts home insurance rates will go up by 6% by the end of this year.

Official Home Insurance’s online platform will connect you with the lowest available home insurance rates near you to combat this rise and give you an opportunity to cut down on this expense.

In case of car emergency

It’s also wise to build up an emergency fund to provide you with some backup funds in case of a car emergency like broken windshield or engine trouble. A stash that will help you get back on the road as soon as possible. Preferably you want to put the money in an account that helps your money grow even more as you build up your emergency fund.

Wealthfront is an next-gen financial services platform offering a range of products from automated investing to cash accounts. You can expedite your savings with a high-yield cash account like the Wealthfront cash account that offers 5.00% APY — that’s 10x the national average.

To get started, you can fund your cash account with as little as $1 and save some backup funds that you can rely on in case of emergency.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.