Geico Car Insurance Guide [Data + Expert Review]
Geico Car Insurance Guide [Data + Expert Review]
UPDATED: Mar 20, 2020
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Geico Car Insurance Guide [Data + Expert Review]
|Premiums Written (2017)||$29.6 billion|
|Current Assets||Over $32 billion|
|Loss Ratio (2017)||72.04%|
|Headquarters||5260 Western Avenune|
Chevy Chase, MD 20815
|Local Offices||Find your local office here|
|Phone Number||(800) 841-3000|
|Best For||Affordable Rates and Online Services|
It’s difficult to imagine living in a world where Geico and its car insurance providing peers don’t exist — or, at least, don’t pop up on your television and radio all the time. Car insurance, however, is a necessity. Luckily, we have a litany of providers to choose from when it comes to deciding who we want to cover us.
Geico is one of the companies that takes a lot of pride in its ability to offer lower rates than its competitors.
But is it the right provider for you?
It’s never fun to do a research deep-dive into a car insurance provider, even if they are offering you lower rates than their competitors. Ideally, you need to have all of their information readily available, and that’s not always possible.
The good news is that you don’t have to do that research on your own. That’s our job.
In this guide to Geico, we’ll go over the company’s financial history, current ratings, and the different types of coverage it has available. If you’re feeling impatient and want to start comparing rates ASAP, you can use our free online tool to find rates in your area.
The best place to start is at the foundation. How does Geico stand, financially? Here, we’ll dive into several different perspectives exploring Geico’s financial history and growth. With this information at hand, you’ll be able to more readily see how the company holds up when compared to its peers.
|AM Best||A++ (Superior)|
|Better Business Bureau (Northbrook, IL)||B+|
|S&P||AA+ (Very Good)|
The table above details Geico’s financial ratings as expressed by five different metrics. Let’s break those down:
- A.M. Best awards Geico an A++. This is one of the highest ratings that the organization offers. It reflects Geico’s ability and willingness to pay its consumers’ claims without complaints.
- Better Business Bureau assess the number of complaints different organizations receive over the course of a year. Here, they report that Geico has received 3,129 complaints in three years. Because Geico is a larger company, that number isn’t so imposing. In fact, BBB awards Geico a B+, reflecting a generally positive relationship with its consumers.
- Moody’s and Standard and Poor’s both address Geico’s financial stability as well as their credit ratings. Combine these ratings with the listed market share, and Geico has a fairly strong financial standing.
NAIC Complaint Index
Let’s dig up a bit of dirt, though. Everyone loves hearing about the complaints a company receives. BBB does touch on these briefly, but the NAIC has a report of its own that’s worth reviewing:
|Private Passenger Policies||2016||2017||2018|
(better or worse than National Index)
|National Complaint Index||0.78||1.21||1.15|
|US Market Share||2.39%||2.41%||2.46%|
This takes a bit of explanation. Geico is large enough to have a number of different divisions associated under the same name. Even so, the NAIC is able to determine an overarching complaint average for the conglomerate as a whole. If we view the national complaint average as 1.00, we can see that Geico has significantly fewer complaints than one might expect.
Comparatively, we need to assess Geico’s customer satisfaction levels as reported by J.D. Power.
|Region||Power Circle Ranking||Numeric Score|
(out of 1,000)
|Percent of Companies with Higher Numeric Score|
|Florida||Better than most||832||14%|
|Central||Better than most||838||14%|
|Mid-Atlantic||Better than most||848||8%|
|New York||About average||813||78%|
|New England||About average||827||20%|
|North Central||About average||830||33%|
Despite the glowing reports from the NAIC and BBB, J.D. Power reports that Geico as an “about average” customer satisfaction rating.
Again, we can attribute this to the size of the company and its drive database, but it’s still worth acknowledging.
But what does Consumer Reports have to say about operations at Geico?
|Being kept informed of claim status||Very good|
|Damage amount||Very good|
|Ease of reaching an agent||Excellent|
|Freedom to select repair shop||Very good|
|Promptness of response - very good||Excellent|
|Simplicity of the process||Very good|
|Total||89 out of 100|
The corporation nets a 89 out of 100. This means that Geico’s financial standing, when combined with its customer satisfaction, is commendable, if not perfect. In this case, Geico barely manages to pull ahead of Progressive in ratings while matching pace with State Farm.
“Geico” isn’t just a catchy acronym. Unraveled, Geico stands for “Government Employees Insurance Company.” Founded in response to the Great Depression, Geico originally intended to provide the aforementioned government employees with coverage that would enable them to survive a similar incident. Thus, the emphasis on affordable pricing.
Geico retained this intent until 1974. At that point, it expanded its available products and made those products available to the non-governmental public. The company took a blow, at first, but as you can see, they were quick to recover. They were also purchased by Berkshire Hathaway, improving their financial standing significantly.
2000 saw Geico — or, more specifically, the Geico gecko — become household names. That success has led Geico to serve as the country’s second-largest car insurance provider, coming in barely behind State Farm.
We already briefly touched on Geico’s market share. Let’s look at it in more detail, though:
|Year||Market Share of Liability||Market Share of Physical Damage||Total Market Share|
Geico’s market share has risen since 2015. It’s the company’s premiums, though, that make it stand out from its peers. While its overall growth may be on the slow side, that same trend reflects a steadily-growing public appeal. This implies that Geico’s less likely to pull publicity stunts to draw in mass joining and is more likely to encourage potential drivers to switch over from other providers.
Geico utilizes direct marketing to appeal to its consumers. Instead of rely on agents, Geico will reach out to potential drivers without the use of a middle man. This business model drastically reduces Geico’s operating costs and enables the company to offer its competitive rates.
We’ve already mentioned the Geico gecko, but what does the little guy really represent? He’s an unconventionally cute animal mascot that’s launched Geico into public consciousness:
However, the gecko isn’t the only selling point Geico’s used. Recently, they’ve been testing out alternative advertisements, as you can see:
Investment in the Community
Geico, being a fairly large conglomerate, is quick to give back a percentage of its earnings to the community it serves.
Geico’s best-publicized partnership has been with the Children’s National Hospital of Washington, D.C. Over the past 40 years, Geico has raised more than $3.4 million for the patients and staff working with this hospital.
This isn’t Geico’s only outlet, though. The Geico Care program encourages all of Geico’s affiliated employees to volunteer within their communities. Geico Cares participants, as of 2016, generated over 23,000 hours of community service, building up the company’s consumer-oriented reputation.
Geico’s Position for the Future
Geico is looking to slowly promote its own growth, as is reflected by its aforementioned market share.
|Private Passenger Auto||2015||2016||2017|
|Premiums written||$22.8 billion||$25.5 billion||$29.6 billion|
|Loss Ratio||74.36 %||74.38%||77.14%|
It’s anticipated that Geico will make moves on the #1 provider spot sooner rather than later, but whether or not it succeeds remains to be seen.
Availability by State
Geico makes its policies available in all fifty states, though you should expect premiums to vary based on your location:
|State||Low Coverage Rate||Medium Coverage Rate||High Coverage Rate|
Now that you have a better idea of how Geico stands when compared to its peers, let’s check out the coverage that the company makes available to drivers:
- Collision – this coverage covers vehicle repairs or replacement after an accident.
- Comprehensive — comprehensive coverage protects your car from events that are out of your control, like storms or animal-based accidents.
- Liability – liability coverage comes in handy if you’re determined to be “at-fault” in an accident. This coverage helps you pay for damage done to another person or their car.
- Medical Payments Coverage – this coverage covers any medical or funeral expenses of passengers in your vehicle.
- Personal Injury Protection – this coverage ensures that, regardless of who is the driver at fault, your personal injuries and lost wages are covered.
- Rental Reimbursement Coverage – this coverage covers the cost of the rental vehicle you have to use while your own car is being repaired.
- Uninsured Motorist – this coverage ensures that if the other driver in an accident is the at-fault driver and also under- or uninsured, you’ll be able to cover your expenses without digging into your savings.
- Emergency Roadside Coverage – if you blow out a tire while on the highway, your battery dies, or you end up locked out of your car, emergency roadside coverage will protect you from assistance fees.
- Mechanical Breakdown Coverage – if parts or systems in your car fail as a result of something other than normal wear and tear and/or improper maintenance, then this coverage will cover the pairs’ replacement.
- Collector Auto Insurance – collectors of rare or classic cars may require unique repair or maintenance; this coverage ensures that those fees won’t break the bank.
- Mexico Auto Insurance – if you’re going to be driving through Mexico in the short-term or for an extended period of time, this coverage will ensure that your accidents are covered.
- Rideshare Insurance Coverage – if you are a Lyft, Uber, or other rideshare service’s driver, you’re legally required to have this insurance. While Geico makes it available, you will not be able to include it as an add-on, but will rather need to make it your primary policy.
- Commercial Coverage – likewise, if you intend to use your vehicle for your own business, Geico will be able to offer you coverage to keep you and other drivers in your car safe.
Geico Discounts and Programs
With base coverage out of the way, let’s take a look at the discounts Geico lists through their platform. All in all, you’ll be able to choose from 30 different types, though there are some that aren’t explicitly noted on the site.
Different types of safety equipment attached to your car can net you some savings through Geico, as you can see:
|Vehicle Equipment Discount||Savings up to:||Policy Type Savings Are Applied To:|
|Air Bag||40%||Medical payments or personal injury|
(select states only)
|Daytime Running Lights|
(select states only)
Geico is fairly unique in offering its driving history discounts. Partner those listed here with the release of the new DriveEasy app, and safe drivers may see a number of benefits in partnering with Geico:
|Driving History and Habits Discount||Savings up to:||Policy Type Savings Are Applied To:|
|Five-Year Accident-Free Good Driver||26%||Varies|
|Seat Belt Use||15%||Medical payments or personal injury protection|
Education and Driver’s Ed
Geico’s education discounts are a little strange and will vary by person. The company offers defensive driving discounts and teen driver discounts that will fluctuate based on the person applying for the discount.
Full-time students with a B average, however (so long as they’re between 16 and 24) will receive a consistent 15 percent off of their coverage costs. Do note, though, that this discount is not considered the Geico Further Education discount, which allows any person with a four-year degree or more to receive their own discount.
If you have multiple cars or multiple policies, you’ll also be in the running for a discount.
- Multi-vehicle insurers receive savings up to 24 percent.
- Multi-policy holders’ discounts will vary based on their bundle.
Unlisted discounts available through Geico include:
- Multi-Vehicle – do you have multiple vehicles registered to your Geico car insurance plan?
- Multi-Policy – have you bundled your homeowners, renters, condo, or mobile home policy with your auto insurance plan?
- Distant Student – do you have a college student on a campus 100+ miles away who is not using their vehicle at this point in time?
- Early Signing – did you sign for your six-month policy at least seven days before your current policy expired?
- Farm Vehicles – are you insuring any vehicles that may serve agricultural purposes?
- Full Payment – did you pay your premium in full and upfront?
- Low Mileage – do you only travel a scant number of miles on an annual basis?
- Utility Vehicle – are you registering a vehicle that does not serve as a passenger vehicle?
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Availability of Coverage
Why do Geico’s discounts come before their actual premiums? As you’ve probably seen, Geico’s coverage varies by state. Their discount percentages, however, do not.
That, and there are a number of different factors that go into determining your car insurance rate. We’ll dive into these factors in the sections below so you can develop a better estimate of how much you may have to pay if you partner with Geico.
Average Annual Premium by Demographic
There are a couple of car insurance myths that contradict one another. One claims that men have to pay more for their coverage than women do. The other claims that women can’t drive and have to pay higher premiums as a result.
Take a look at the table below, and you’ll find that gender may not be the problem here:
|Group||Married 35-year-old Female||Married 35-year-old Male||Married 60-year-old Female||Married 60-year-old Male||Single 17-year-old Female||Single 17-year-old Male||Single 25-year-old Female||Single 25-year-old Male|
There are some discrepancies in rate, of course. However, age contributes significantly more to a fluctuation in premium than gender does. Geico’s own rates don’t fluctuate all that much. However, teenage male drivers are going to be expected to pay more for their coverage than their female peers.
Average Annual Premium by Driving Record
Your driving record also impacts the premium that car insurance providers, like Geico, are able to offer. Geico is notably more forgiving than its competitors, but you’ll still need to drive with caution if you want your premium to stay on the low side.
|State||Clean Record||One Speeding Ticket||One Accident||One DUI|
Average Annual Premium by Coverage Level
Likewise, the amount of coverage you want to have covering your car is going to raise or lower your rate accordingly:
Geico makes it easier for you to purchase comprehensive coverage, whereas its competitors allow you to cherry-pick the coverage you want. There are pros and cons to both methods, but Geico’s does cost notably less than some of its peers.
Average Annual Premium by Credit History
Your credit history reflects your ability to pay back money you owe to different organizations. Naturally, car insurance providers like Geico are going to take this factor into account when offering you coverage.
|State||Good Credit||Fair Credit||Poor Credit|
With Geico, your rate is going to fluctuate to match your credit, though not by too much (that is, depending on the state you live in).
Average Annual Premium by Commute
For the most part, Geico won’t raise your rate too much if you happen to have a longer commute. For North Carolina and Hawaii residents, however, the rates will remain static.
|State||10 Miles Commute / 6,000 Annual Mileage||25 Miles Commute / 12,000 Annual Mileage|
As is the case with most providers, a shorter commute results in a cheaper car insurance premium.
Average Annual Premium by Make and Model
Car insurance providers will also vary your premium based on the make and model of the car you’re looking to insure. Newer cars often generate higher premiums — though that’s not always the case.
|Group||2015 Ford F-150: Lariat SuperCab with 2WD 6.5 foot bed and 2.7L V6||2015 Honda Civic Sedan: LX with 2.0L 4cyl and CVT||2015 Toyota RAV4: XLE||2018 Ford F-150: Lariat SuperCab with 2WD 6.5 foot bed and 2.7L V6||2018 Honda Civic Sedan: LX with 2.0L 4cyl and CVT|
How to File a Claim
If you want to file a claim through Geico, you can do so through a variety of different means:
- By Phone – you can call 1-800-207-7847 to file a claim 24/7/365
- By No Log In Feature – this online feature only requires you to issue your name and policy number to file and track an insurance claim.
- By Geico’s Mobile App – the mobile app Geico’s created allows you to file and track your claim from your phone while also offering chat services.
- By Agent – a local Geico agent will be able to initiate a claim for you.
In the age of the Internet, any business needs to have an easy-to-navigate website. Geico’s website is well-organized, allowing you to generate a quote for your car within minutes. You’ll also be able to easily find information about their available premiums and discounts, as Geico has no interest in hiding that information from you.
If you want frequent updates about the ongoings at Geico, you’re in luck. The site provides you with a link to Geico More, a weekly publication that’ll help you learn more about the car insurance industry.
Likewise, all insurance providers need an app to appeal to the growing number of mobile consumers. Geico’s app has netted a 4.8 out of 5 star rating in the Apple App Store. That’s no inflated number, either — 1.23 million people have taken the time out of their to rate the app.
Features available through the app include:
- Digital proof of insurance designed to fit your screen and remain accessible in a moment’s notice
- Online bill payments
- Online quotes
- Claim reporting and tracking
- The ability to call for roadside assistance
- Opportunities to chat with licensed agents
- Vehicle Care that’ll help you retain date information about vehicle serving
- Easy estimates that help you document accidents and report your damages
- Geico Explore, which takes you through your location via augmented reality
In July 2019, Geico announced that it was going to try and make driving responsibility simpler for its affiliated drivers. Now, Geico is ready to roll out an additional app called DriveEasy
Instead of replacing the existing Geico app, DriveEasy will be able to track your driving behavior to ensure that you’re safe while on the road. It will then affiliate your data with your profile through the Geico website, netting you some of the best car insurance rates available.
Upon installation, DriveEasy will be able to track:
- Distracted driving, or the use of your phone while you’re on the road
- Distance driving, or the length of time you spend on the road on a daily basis
- Hard braking
- Dangerous driving times, or periods of time when traffic is high and your car happens to be a part of it
How can DriveEasy capture all of this data? Most smartphones already process much of this information courtesy of your GPS tracker. However, you will need to provide DriveEasy access to these features upon installation.
After that, the app will run in the background and determine when you get into your car, whether you’re driving or riding, and how long you stay in the car.
At the end of every trip, DriveEasy will report your data back to Geico’s Cloud for analysis. You’ll be awarded an applicable driving score after that analysis is complete.
The higher your score is, the better you drove.
All that said, the app still has some bugs to work out. At this point, it can mistake passengers for drivers and vice-versa. However, you can amend these mistakes once you’re out of the car. All you need to do is pull up “View All Trips” in the DriveEasy tab and correct your label.
Pros and Cons
With all that in mind, how does Geico measure up?
|Consistently low rates||Higher than usual rates for having bad credit or driving violations|
|Award-winning mobile services||Just recently (2019) made available a safe driving app for usage-based insurance|
|Ease of getting a quote online||Higher than usual rates for residents of Hawaii, Nebraska, New Mexico, and Rhode Island|
Long story short, Geico is a cheap and user-friendly car insurance provider. Its costs will vary based on where you live, though, and it does have fewer discounts than a number of other providers.
The future looks bright for Geico, though. With their financial ratings reflecting positive growth, any new drivers will be able to rely on them for years to come.
How do I get an auto quote?
- Go to the Geico home screen and input your zip code into the prompt box
- Enter your basic personal information, including name, birthday, and address
- Enter your vehicle information, selecting your registered vehicle or a new one
- Enter your personal information in greater detail, including driving history, level of education, and employment status
- Add any other drivers you want included on your policy
- Add that person’s driving history
- Enter affiliations for potential discounts
- Enter an email address and preferred telephone number
- Hit “Get Quote!”
What is GAP insurance?
GAP insurance is an optional form of car insurance coverage that can help you cover the “gap” between the amount you owe on your car and the amount the car is actually worth, or its actual cash value (ACV).
Should you get in an accident, you’ll be able to use GAP insurance to cover the difference between the amount of money your car is worth now that it’s been damaged and the amount of money you may still owe on an auto loan.
What is an SR-22?
An SR-22 is a certificate of insurance or a form of financial responsibility. This vehicle liability insurance document is only required of drivers who insurance companies like Geico consider to be “high-risk.”
You’ll be considered a high-risk driver if you have an abnormal number of points registered to your driver’s license or if any of the following apply to you:
- You’ve been convicted of a traffic-related offense, like a DUI
- You’ve been in an uninsured car accident and had your license revoked
- You’ve had your license revoked for any other reason
What happens if I’m involved in an accident in another state?
Because Geico operates in all fifty states, you should be able to maintain your coverage no matter where you are. However, the nature of individual accidents and state laws may change whether or not you’re determined to be at-fault for an accident or not.
Does my deductible still apply even if I’m not at fault?
You may have to pay your deductible even if you’re not at fault depending on what kind of coverage you have. If there’s a chance that Geico could recover the amount you paid on your deductible from the person determined to be at fault in your accident, then the company will do so.
However, if the company does not succeed, you can either choose to try and recover the deductible yourself or pay your deductible as required.
And with that, we come to the end of our guide to Geico’s car insurance offerings. If you want to start comparing rates ASAP, you can use our free online tool to find affordable coverage in your area.