GEICO Auto Insurance Review – Good Financial Cents®


Key takeaways:

  • Geico is one of the lowest-cost car insurance providers in most states, and often THE lowest.
  • Geico offers rideshare and personal auto insurance that can be purchased on a single policy, protecting its customers during both work and pleasure.
  • Geico offers industry-leading online tools which allow customers to manage their insurance policies on their own, without having to deal with an agent.
  • The company provides a long list of discounts to help get the lowest rates for policies, as well as a mobile app that allows you to shop for insurance, pay premiums, access your insurance ID cards and file claims right from your phone.
  • Geico Express requires no login and allows easy access for customers to make quick payments and access and policy information. 

Because of that witty English gecko in all their commercials, Geico has become one of the best-known — and most popular — car insurance companies, the second largest in America. However, Geico offers many more reasons to choose their insurance over any other.

About the Company

Geico is the second largest auto insurance provider, based on direct premiums written, with 13.6% of all auto insurance in force in the U.S., trailing only State Farm. The company has more than 17 million customers nationwide, 28 million insured vehicles, with over $34 billion in direct premiums written.

Along with being one of the lowest cost providers, Geico also provides 24-hour service, seven days a week, 365 days a year. Although the company’s primary product is auto insurance, they’re also affiliated with seven other companies and provide a large range of other types of insurance and coverage to meet the needs of their customers.

In this review, we’re going to focus on Geico car insurance, and also spend some time on their home insurance offerings.

Geico Car Insurance

Geico is one of the cheapest providers in most states, providing the lowest premiums in about 10 states.

Basic features of Geico car insurance are as follows:

  • Availability: All 50 states, plus the District of Columbia
  • Covered vehicles: Autos, commercial autos, classic cars, snowmobiles, motorcycles,  recreational vehicles, ATVs/UTVs, and boats
  • Customer support: 24/7 by phone
  • Claims satisfaction: According to the JD Power 2020 US Auto Claims Satisfaction Study (released in October, 2020), Geico ranks #12 out of 24 companies providing car insurance nationwide. They scored 871 out of a potential 1,000 points, which is just one point below the industry average of 872.
  • Financial strength rating: A++ (Superior) from A.M. Best
  • Better Business Bureau ranking: A+ (on a scale of A+ to F)

How to Sign Up with Geico Car Insurance

One of the features of the Geico application process we really appreciated is the ability to get quotes online. By entering basic information, we were able to get quotes for various driver profiles without needing to enter sensitive information such as a Social Security number or phone number.

The online experience that Geico provides allows you to get the information you need without having to receive any unwanted phone calls or emails. It’s pressure-free quote finding.

Unique Features

The lowest premium does not always provide the best coverage. There are several features that make Geico stand out from the competition:

  • Large number of discounts: Geico offers one of the widest ranges of discounts in the auto insurance industry.
  • Accident Forgiveness: Your insurance rate won’t go up as a result of your first at-fault accident. Geico will waive the surcharge associated with the first at-fault accident: caused by an eligible driver on your policy. Geico Accident Forgiveness is per policy, not per driver, however Geico will add more accident forgiveness for loyalty.
  • DriveEasy: Scores you based on your driving skills. Tracking and evaluations go through the mobile app.
  • Rideshare coverage: If you drive for Uber, Lyft, or even a food delivery service.

Geico Auto Insurance Coverage Options

Geico offers standard auto insurance coverage provisions.

  • Bodily injury and property liability coverage.
  • Collision and comprehensive coverage.
  • Uninsured and underinsured liability coverage.
  • Medical payment and personal injury protection coverage.

Important exclusion: Geico does not offer Gap Insurance, and they recommend you obtain that coverage from your leasing or financing company if it’s needed.

Optional coverage provisions include the following:

  • Rental car reimbursement: Receive reimbursement for a rental car while your vehicle is in the shop being repaired.
  • Rideshare coverage: Provides coverage when you’re logged into your ridesharing app and waiting for a trip request or customer. But please be aware that this option is not available in all states, and it is included under a Geico commercial policy.
  • 24/7 roadside assistance: Includes jump starts, towing (non-accident), lockout service, fuel delivery and labor to change a flat tire.
  • Mechanical breakdown coverage: This covers repairs to all mechanical parts of a new car, less than 15 months old and with less than 15,000 miles.
  • DriveEasy: Similar to Progressive’s Snapshot, this is Geico’s way of giving you a driving score based on your driving habits. Once the mobile app is downloaded on your smartphone, it detects and tracks your movements and evaluates your driving skills.

Geico Discounts

Geico offers one of the most extensive lists of discounts in the auto insurance industry.

Below is a list of the discounts they offer, and the average premium savings you can expect:

  • Air Bag: 23%
  • Anti-Lock Brakes: 5%
  • Anti-Theft System: 23%
  • Daytime Running Lights: 3%
  • New Vehicle Discount: 15%
  • Good Driver: 22% (Five Years Accident-Free)
  • Seat Belt Use: Varies
  • Defensive Driving: Varies
  • Driver’s Education Course: Varies
  • Good Student: 15%
  • Emergency Deployment: 25%
  • Federal Employee (Eagle): 12%
  • Membership & Employee: Varies
  • Military: 15%
  • Multi-Vehicle: 25%
  • Multi-Policy: Varies

Sample Premiums

To provide reasonable estimates of Geico car insurance premiums, the table below presents semi-annual premiums for four drivers under six scenarios each. We’ve obtained these through direct quotes from the Geico website.

Three quotes are based on liability amounts. Liability limits are expressed in a three-number sequence that looks like XX/XX/XX. The first number in the sequence is the amount of coverage for an injury to one person in an accident that’s determined to be your fault. The second number is the coverage limit for all injured parties in a single accident, while the third is coverage for property damage to other people’s property.

The limits we’ve used in our table are as follows:

1.   30/60/25 (the minimum coverage allowed in Texas)

2.   50/100/50

3.   100/300/100

In addition, the table also presents each liability coverage amount with uninsured and underinsured motorists, as well as collision and comprehensive coverage added to the basic liability policy.

We got quotes for four individual driver profiles, including a 23-year-old male, a 23-year-old female, a 53-year-old male, and a 53-year-old female. All four live in suburban Houston, Texas (Zip Code 77001), and drive a 2018 Toyota Camry 12,000 miles per year. None of the drivers has a moving violation or at-fault accident claim in the previous three years.

For simplicity’s sake, each driver is single, rents their home and has a college degree.

Here are the results:

Coverage / Driver Profile Male, 23 Female, 23 Male, 53 Female, 53
Rate for State Minimum –30/60/25 – Liability Only  $399  $456  $278  $292
With Un/Under-insured Motorist and Collision & Comprehensive  $1,051  $1,113  $714  $748
50/100/50 – Liability Only  $435  $498  $302  $317
With Un/Under-insured Motorist and Collision & Comprehensive  $1,114  $1,215  $770  $816
100/300/100 – Liability Only  $499  $561  $345  $363
With Un/Under-insured Motorist and Collision & Comprehensive  $1,112  $1275  $854  $915

Who Geico Is Best For

Each situation is different; therefore we can’t give you the “right” answer. But Geico may be the right choice for you if any of the following apply:

  • Geico is the lowest-cost provider in your state for your driver profile (which it often is).
  • You participate in ridesharing activities.
  • You have multiple drivers and vehicles that will qualify for several volume discounts.
  • You like the idea of the all-online quote system and application process.
  • You are over 75, where Geico offers some of the lowest premiums in the industry.

Geico vs. Other Car Insurance Companies

The table below compares Geico with three of the most popular auto insurance providers in the country: Progressive, State Farm, and Allstate. We’ve used side-by-side comparisons of three popular coverage levels, as well as the claims satisfaction and financial strength rating for each company.

Category / Company Geico Progressive State Farm Allstate
Average Annual Premium: State Minimum $464 $516 $500 $756
Average Annual Premium: 50/100/50 with Collision & Comprehensive $1,006 $1,106 $1,190 $1,754
Average Annual Premium: 100/300/100 with Collision & Comprehensive $1,222 $1,346 $1,380 $2,140
J.D. Power Claims Satisfaction Rating 871/1,000 856/1,000 881/1,000 876/1,000
A.M. Best Financial Strength Rating A++ (Superior) A+ (Superior) A++ (Superior) A+ (Superior)
SOURCE: Average Cost of Car Insurance in 2021 from The Zebra

The company that you feel will work best for you will depend on your own driver profile, your state of residence, and the specific needs and preferences you have for your policy.

What To Know About Auto Insurance

Lower premiums don’t always give you the most coverage. When shopping for car insurance, you’ll want to make sure you carry enough coverage in the event of an accident to prevent any out-of-pocket expenses. Below are some tips on what to look for when shopping around for a premium.

  • Sufficient coverage — The liability limits in your policy should approximate your net worth. State minimum coverage may not be enough if your net worth is several hundred thousand dollars. Also, higher liability coverage can be added at a surprisingly low premium increase.
  • Maintain clean credit — The higher your score, the lower your premium will likely be.
  • Additional coverage — Optional provisions like GAP, uninsured/underinsured motorist,  rental reimbursement and emergency repair are inexpensive compared to the benefit they provide.
  • Deductible — A higher deductible can lower your premium, but it can put you in a financial bind if you won’t have the cash available to cover it.
  • Discounts — Ask each company about all discounts they have — not all are published, and there may be more that will apply to you.
  • Shop around — Get quotes from several companies and get the very best rates and coverage.

Geico Home Insurance

Geico’s home insurance isn’t a single product line, but several, and they work with 31 affiliates. Coverage is not only for owners of detached homes, but also condominiums and mobile homes. In addition, Geico also provides renters insurance. Any of these policies will qualify for the bundling discount with a car insurance policy.

  • Availability: Geico home insurance is available in all 50 states and the District of Columbia, however Florida has a limited market.

Basic Home Insurance Coverage

Geico home insurance policies provide the following basic homeowner coverage types:

  • Dwelling: Protects you against damage to your home as well as loss of your home in the event of an incident
  • Personal possessions: Protects against damage, theft, and destruction of your personal items
  • Loss of use: Provides coverage of extra costs such as hotels for reimbursement in the event you’re unable to stay in your home
  • Medical Payments: Covers any medical bills of someone injured on your property
  • Liability: Much like auto insurance, this provision offers protection for bodily injury and property damage if someone’s injured in your home and you’re at-fault.
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Home Insurance Discounts

Geico’s home insurance discounts are similar to those available for car insurance, and include:

  • Bundle home and auto – savings vary.
  • Safety and alarm discounts – includes burglar and fire alarms, automatic sprinklers, cameras, and security systems.

Other structures – Covers damage to unattached structures- such as a fence or shed

Bundling home and auto will allow for a single deductible between the two policies. One deductible will apply each year, whether it’s a claim against your car or home. When you bundle home and auto policies, you can set up a single deductible between the two.

Geico Home Insurance Ratings & Average Premium

Geico does not score well when it comes to home insurance ratings, though it is one of the lower-cost providers.

  • Claims satisfaction: No rating issued (coverage provided by third parties.
  • Financial strength rating: A++ (Superior).
  • Average homeowner’s insurance premium: N/A, due to multiple providers

How to Sign Up with Geico Home Insurance

Just as with Geico car insurance, you’ll complete the application process for home insurance online. If you prefer, you can call a toll-free number to get more specific information.

Other Services Offered by Geico

Listed below are the other products and services that Geico provides.

  • Motorcycle, ATV, RV, and Boat insurance
  • Personal umbrella Insurance
  • Life insurance
  • Flood insurance
  • Overseas insurance
  • Business Insurance
  • Professional Liability insurance
  • General Liability insurance
  • Commercial Auto insurance
  • Collector Car insurance
  • Identity Protection
  • Jewelry insurance
  • Medical Mal-Practice Insurance
  • Pet Insurance

If any of the above coverages interest you check with a Geico representative to add them to a new auto insurance policy, or to one you already have a policy in place.

The Bottom Line

Geico is the second largest auto insurance company in the country, providing car insurance to nearly one out of every seven drivers in America.  Although it’s important to shop around and compare quotes from multiple companies, Geico should definitely be on your list. You may even find they’re the lowest cost provider in your state.

Geico FAQs

Is Geico cheaper than Progressive?

Sometimes, but not always. In some states, Progressive will be cheaper, the rates between the two will usually be very close. That said, Geico is the lowest cost provider in more states than Progressive is.

What is the average cost of Geico car insurance?

As we showed under “Geico vs. Other Insurance Companies” above, Geico averages $464 per year for state minimum coverage, $1,006 for 50/100/50 coverage with collision and comprehensive, and $1,222 for 100/300/100 coverage with collision and comprehensive. That said, those are just nationwide averages. They may be higher or lower, depending on your driver profile and the state you live in.

Why is Geico insurance so cheap?

Geico is one of the lowest cost providers in large part because they operate online. That means fewer buildings and salaries to cover. They also provide a wide range of discounts that further reduce their premiums.


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Autore dell'articolo: Redazione

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