Geico insurance costs an average of $3,546 per year for auto coverage, according to WalletHub data. Costs vary based on a driver’s history on the road, location, age, coverage selections and other factors, but the average cost of Geico insurance policies ranks second only to Progressive Insurance in WalletHub’s latest Cheap Car Insurance Study, which compared 46 major car insurance companies. In other words, Geico insurance coverage is typically cheaper than policies from other popular auto insurance providers like Allstate, Nationwide, State Farm and Travelers, all else being equal.
How Much Geico Insurance Costs
Clean Driving Record
Poor Driving Record
$312 / month
$388 / month
$254 / month
$314 / month
$259 / month
$327 / month
Geico aims to provide insurance policies at affordable costs, in part by offering bundled insurance packages at lower prices and a variety of discounts. You can get a quote online or by calling a Geico agent at 1-800-207-7847 to price out your particular coverage needs. You can also learn more about the sample quotes above from WalletHub’s Geico Car Insurance Review.
GEICO is cheap because it sells insurance directly to consumers and offers a lot of discounts. GEICO is not the cheapest insurer out there, though. For example, GEICO ranks 21st for the cheapest car insurance among 46 major companies, based on WalletHub’s 2019 GEICO car insurance review. Competitors like Esurance and Progressive are actually a bit cheaper overall.… read full answer
Still, GEICO is pretty cheap relative to many other major insurance providers, and there are good reasons for that.
GEICO is cheap for many consumers because it offers a wider variety of discounts than many major providers. There are GEICO discounts based on a driver’s history and habits on the road as well as any affiliation they have with 800+ eligible organizations, including the federal government. You can also get discounts for taking a driver’s education course or making your payments electronically. GEICO offers a number of discounts for having a car with certain safety equipment, too, such as “passive restraint” seat belts and anti-lock brakes. Most consumers qualify for more than one discount, which helps to lower the overall cost of their premiums.
The fact that it sells insurance directly to consumers is another big reason why GEICO is so cheap. This eliminates the cost of middlemen. GEICO has significantly fewer local offices and agents than companies like State Farm and Allstate, limiting agents to high-population areas only. Having a smaller agent network gives GEICO savings it can pass on to its policyholders.
GEICO started with direct phone sales but has grown rapidly in the 21st century by developing easy-to-use sales technology. In fact, GEICO focuses today on keeping their rates low by investing in, and beating the competition in, technology that helps reduce manhours, minimize their cost of selling and increase convenience to consumers. Today, you can use GEICO’s advanced website or mobile app to easily find information on insurance or get a personalized quote. You also can check rates and get help with coverage and discount decisions on GEICO’s apps for Amazon Alexa and Google Home.
Geico’s rates increase when drivers add more coverage, get into an accident, receive a speeding ticket, or file a claim. Certain life events, like adding a teenage driver to your policy, can also increase your rates. Plus, it’s possible to lose discounts, which could increase your premium. Your teen might lose a good student discount, for instance, or a speeding ticket could cancel your good driver discount.… read full answer
Certain large-scale trends contribute to Geico and other insurance companies raising rates, too. Geico increases premiums as the cost of medical care rises, for example, because it makes bodily injury claims more expensive to pay out. Unpredictable, severe weather also causes prices to go up since insurers are hit with large numbers of expensive claims at once.
That helps to explain why Geico may continue to raise your rate even if you haven’t had any accidents or made any policy changes. Geico sets premiums based on how much they predict claims will cost. If those predicted costs increase, so will your premiums.
The bottom line is that there are a lot of factors affecting your insurance premium, and not all of them are within your control. But it’s still important to pinpoint the most likely causes of insurance rate hikes, so you can understand them better, at the very least, and hopefully make money-saving adjustments.
Why does Geico keep raising my rates?
You got a high-tech car with more features, which is more expensive to insure and repair.
Car accidents are on the rise, with 36,560 deadly crashes and 33,654 collisions in 2018—an 11% increase from five years earlier, despite safety improvements.
The cost of healthcare rises by about 6% each year, which makes it more expensive to pay medical claims.
Catastrophic weather is becoming much more common. In 2018, there were 55 weather catastrophes—the most in over a decade.
Those are some of the most common reasons why Geico may repeatedly raise a customer’s premium. And, as you can see, increases in insurance costs won’t always be about you in particular. The premiums we have to pay can also rise if the cost of providing car insurance goes up on the whole.
Does Geico increase rates after a claim?
Geico doesn’t always increase your premium if you file a claim. They consider your driving history, the number of claims you’ve had in the past, the payout amount and type of claim, and whether you qualify for accident forgiveness before raising your rate.
This is also true for speeding tickets and other moving violations. If you’re a loyal customer with a single incident, your premiums may not go up at all.
If your insurance rate is going to be affected by a claim or incident, you’ll get a new policy payment amount 30 days prior to renewal, so you’ll have time to shop around and compare rates if you want.
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