Are Geico insurance rates competitive?

Geico insurance will go up by about 45% after your first accident resulting in a claim of $750 or more. If this is your second accident in less than three years, your insurance will go up at least twice as much, depending on the total cost of the claim. If you have more than two accidents in a three-year period, you can expect to pay 225% more. These surcharges will be in effect for three years after the claim.… read full answer

Your rate won’t increase if the accident is not your fault and the other driver’s insurance pays for your claim, or if the damage is less than $750. Keep in mind that Geico also assigns points for other traffic offenses. A DUI conviction is three points, for example, and a speeding ticket of 20 MPH over the posted limit is one point. Your first accident resulting in a claim of $750 or more also gets one point. Your total number of points determines your final surcharge.

Will my Geico insurance go up after an accident if I...

Wasn’t at-fault?

No, if your claim is reimbursed by the other driver or their insurance company, the cost of your insurance will not go up. If you aren’t cited by law enforcement and the other driver is, your premium won’t be affected, either.

Use my Personal Injury Protection?

If you need PIP to cover your or your passengers’ medical bills but don’t need to use your liability or collision coverage, your rates won’t be affected.

Was involved in a hit and run?

A hit and run will not affect your rates as long as you file a police report with 24 hours.

Hit a deer?

Most comprehensive claims are considered beyond your control and do not count against you. But if you’ve filed another claim of any kind in the last three years, hitting a deer could raise your rates.

Was hit by flying or falling objects?

If gravel on the highway shatters your windshield or a tree branch lands on your car, it won’t increase your premium unless you’ve had another claim in the last three years.

Geico has two accident forgiveness programs, which waive the surcharge following an at-fault accident. The first works like a loyalty program for safe, long-time customers. To be eligible, you must have been insured by the company and accident-free for at least five years.

The second way to get accident forgiveness is to pay for it as supplemental coverage. Geico’s website says you still have to meet certain driving-record requirements to be able to buy accident forgiveness, but the rules and terms vary by state. You must also be 21 or older to qualify.

Ultimately, Geico’s policies mean your premiums might not be affected by a single accident if you stick with Geico over time. Since car insurance industry estimates show the average driver files a claim for a car accident about once every 18 years, it’s possible loyal customers’ premiums could never be affected by an accident with Geico.

The cost of car insurance typically goes down the most between the ages of 18 and 19, when rates drop by about 25% on average. Car insurance premiums generally continue to go down each year until age 25, when rates begin to level off for the next few decades. When drivers turn 25 years old, they can expect a discount of about 14%.… read full answer

When Car Insurance Rates Go Down the Most

Note: The table above shows average annual rates for minimum coverage across all 50 states.

Around middle age, rates may begin to creep back up. This is because middle-aged drivers tend to insure newer, nicer cars and begin to add their children to the policy, increasing the average rate for this age range overall. Individual rates also start to go up again between the ages of 65 and 75 because senior drivers have a higher risk of accidents than middle-aged drivers.

Why Age Affects Car Insurance

Age affects car insurance rates because it’s an indicator of a driver’s risk to an insurance company. Young drivers are statistically more likely to get into a car accident than older, more experienced drivers. As a result, they’re considered high-risk and are more expensive to insure.

The risk for the insurer and the cost for the insured then generally decline as drivers age and gain experience. Once drivers pass the age of 65, however, their risk starts to go up again. Not only are senior drivers more likely to get into an accident than middle-aged drivers, but they’re also more likely to be injured as a result.

States Where Age Does Not Affect Rates

Although most people in the U.S. will find their prices change according to this timeline, there are a few states in which insurers can’t use age to determine your rate. In California, Hawaii, and Massachusetts, age won’t have a direct effect on how much you pay for car insurance. Other factors will still have an impact, though. Your driving record, credit score, and marital status can all affect your final premium.

You can lower your Geico car insurance costs by taking advantage of Geico’s discounts, opting for a higher deductible, and improving your driving record, among other things. Some Geico discounts are worth as much as 40% off, and customers can apply multiple discounts to a policy to save even more.

At the end of the day, your Geico auto insurance bill is influenced by many factors. Fortunately, you can take steps to influence some of those factors in order to decrease your premium.

How to Lower the Cost of Car Insurance From Geico

Pare Down Your Coverage

Most states require a certain amount of bodily injury liability and property damage liability coverage. But there are other coverage options (like comprehensive, collision, personal injury protection, and uninsured motorist) that you may be able to get away with not having, depending on the state.

Less coverage usually means lower premiums, but it could also lead to higher costs in the long run, so it’s important to approach coverage decisions with caution.

Use Geico’s Auto Insurance Discounts

Geico offers a wide variety of discounts that you could be eligible for and not even know it. There are discounts for having certain memberships and professional affiliations, for example, as well as discounts for taking defensive driving courses, bundling insurance coverage, and insuring more than one vehicle with Geico.

Choose a Higher Deductible

Opting for a higher deductible on any of your insurance policies from Geico can lower your premium. But if you decide to go this route, it’s important to set aside enough money to pay your deductible in case you need to file a claim. Otherwise, you might not be able to use the coverage that you have.

Improve Your Driving Record

Improving your driving record, whether by taking a defensive driving course to get points off your license or making sure you don’t get any more tickets, can help you qualify for lower Geico auto insurance rates.

Improve Your Credit Score

Get customized credit improvement advice for free from WalletHub. Improving your credit score could actually make you seem like less of an insurance risk to Geico, so you might see your car insurance costs decrease.

Drive Less

Whether you can shorten your commute to work, use more public transportation, or even ride a bicycle more, driving fewer miles each year could lower your premium. Geico customers save an average of 1.3% for driving fewer miles than the national average, according to a study by the Consumer Federation of America. And the less you drive, the more you are likely to save.

Install Safety/Security Devices

Most new cars include safety features like daytime running lights and driver-side airbags, and those will get you a lower rate from Geico. You may also qualify for discounts if your car has other safety features, like anti-lock brakes and full front-seat airbags.

You could be eligible for a lower rate if you install a modern anti-theft device, too, no matter the age of your vehicle. Geico offers savings of up to 25% on the comprehensive portion of premiums for customers who drive a car with an anti-theft system.

Reconsider Where You Live

Car insurance prices vary by zip code. If you’re already thinking of moving anyway, choosing the right area could lead to auto insurance savings.

Comparison Shop

Shop around to see what other insurance companies can offer, so that when it’s time to renew your Geico auto insurance policy, you’ll be able to see if the company can match any lower rates you’ve been quoted. When shopping around, be sure to find out exactly how much you would be paying for 6-month and 12-month premiums, how much the deductibles would be, and what the coverage limits are.

Finally, if you make changes to lower your Geico car insurance costs, don’t forget to make sure your insurance coverage still meets your state’s minimum insurance requirements.