When do Geico's rates increase?

Yes, Geico insurance rates are competitive, since the company is one of the five cheapest insurers nationally, according to WalletHub’s cheap car insurance analysis. Geico car insurance costs an average of $506 annually, or $42 per month.

Geico’s car insurance rates are based on your driving record and experience, along with … read full answerfactors like the type of car you drive, your ZIP code, your insurance history, and more. Your coverage and deductible choices also impact your final quote, as do your eligibility for discounts.

Sample Geico Car Insurance Rates

These sample quotes are representative of Geico’s insurance prices, but individual results will vary. To learn more about how we obtained these sample quotes, check out the methodology section of our complete Geico car insurance review.

There are many reasons your car insurance can go up. If your auto insurance premium went up at renewal time, it may be because you caused an accident, earned a ticket, switched cars, added a teenage driver to your policy or increased your coverage. Even moving a short distance or paying a few credit card bills late can raise your car insurance cost. Your rate may also have been affected by widespread changes beyond your control—in economics, weather, crime and accident statistics, vehicle technology, new laws, medical costs, or your insurer’s profit margin.… read full answer

Top 10 Reasons Your Car Insurance Can Go Up:

1. You increased your riskiness, in the eyes of your insurance company

This happens when you cause an accident, get a ticket for a moving violation, or add a riskier driver like a teenager to your policy.

2. You increased your coverage

Maybe you realized you didn’t have enough protection for your peace of mind, in case of an accident. Higher limits or lower deductibles equal higher premiums.

3. You changed cars

Perhaps you traded an older model for a newer one that raised your rate for collision and comprehensive insurance. Rates will also rise if you trade a safe, practical vehicle for something more expensive, faster, or with special modifications.

4. You moved

If you move into a zone with more population density, a higher theft rate or more insurance claims, your rates can rise. Moving a few blocks can cost as much as 64%, according to some studies. Moving from a small town to a metropolitan area can cost much more—from 300% to 800%.

5. Your credit score fell

Most insurers use credit history in setting rates. If your rating falls from excellent to poor, your premium could as much as double in some states.

6. The economy is stronger

This is a good thing except when it comes to insurance costs. More people working means more drivers on the road, going more places. This raises risk and rates across the country.

7. Medical costs are rising

From 2012 to 2017, bodily injury liability claims increased in cost by 10% per year.

8. Repair costs are rising

Prices for motor vehicle repairs were 61% higher in 2017 than they were in 2000, according to the U.S. Bureau of Labor Statistics. New safety features, with their many sensors and computer chips, are expensive to fix.

9. Cell phones are distracting

At least nine Americans die and 100 are injured in distracted driving crashes every day, according to the National Safety Council. And 1 in 4 car accidents in the U.S. is now caused by texting and driving. Accident rates due to distracted driving are increasing year by year.

10. Marijuana is being legalized in more states

Accidents rose up to 6% in states with legalized recreational marijuana between 2012 and 2017, compared to neighboring states where it remained illegal, according to the Insurance Institute for Highway Safety.

Many of these issues affect your rates because they affect the bottom line of your insurance company. When your insurer isn’t making enough money to cover the cost of claims, they have to raise prices. However, the effects aren’t equal on all insurers. If your car insurance has gone up, it’s important to comparison shop for a company that can offer you the lowest rates.

It’s likely that your car insurance is so high because your driving record is poor, your car is costly to insure, you live in a high-risk location, you’re carrying too much coverage, or you’re not taking full advantage of discounts. The average car insurance premium has also increased by more than 50% in the past 10 years.… read full answer

8 Reasons Why Your Car Insurance Is So Expensive

1. You Have a Poor Driving Record

Your driving record is probably the most important factor in determining your car insurance rates. If your record is poor, with accidents and driving violations, and you have a history of claims, your rates will be high. You will also pay more than average if you’re bad with credit, young (especially young and male), or unmarried.

2. Your Vehicle Is Expensive to Insure

Insurance companies like safe, boring cars that nobody wants to steal for joy-riding or parts. If you choose to drive something large, fast, luxurious, statistically unsafe on the road, or popular with thieves, you will pay more.

3. You Live in a High-Risk Location

Where you live has a large impact on your premiums. Some areas of the country have much higher insurance costs than others. A number of factors go into this, such as the history of accidents in the area, population density, the number of uninsured drivers, crime statistics, bad weather patterns, etc. Also, if you live far from work and have a long daily commute, the high annual mileage could raise your rate.

4. You Have High Coverage Amounts

If your coverage limits are high and your deductibles are low, you will be happy if you need to make a claim, but not as happy when you’re paying your premiums. If the insurance company risks having to pay out more in the future, you will have to pay more now.

5. You Are Not Taking Advantage of Discounts

Insurers offer a very wide variety of discounts. Valued customer discounts offer savings for things like loyalty, multiple cars and policies, and paying online. Driver discounts may apply if you are a good driver, good student, belong to a certain profession or organization, are married, or more. Your car may also qualify for a discount if it has equipment that makes it safer to drive or harder to steal. Discounts are available to nearly everyone, and you may qualify for some that you aren’t getting credit for yet.

6. You Are Too Young or Too Old

Teens are statistically more likely to cause car accidents than the average driver, so insurance companies charge them the highest premiums. Drivers who get their license at 16 years old usually see their premiums decrease with every year of experience, however, and age 25 is generally considered a turning point when premiums become considerably lower.

Experienced drivers in their 40s and 50s are often the cheapest to insure. But rates begin to rise again after age 65.

7. You Have a Low Insurance Score

Every major insurance company uses a credit-based insurance score to calculate premiums where allowed by law. Like credit scores, insurance scores are based on credit report information, only they are used to predict a driver’s likelihood of filing a claim. The rationale is that individuals who are careful with their money tend to be careful drivers, too.

However, insurance scores are controversial, so they are banned in Massachusetts, Hawaii, and California. Most other states also have restrictions on their use, which can be found on the state insurance regulator’s website.

8. Costs Increasing Overall

Record-setting natural disasters, more phone-related car accidents, high rates of insurance fraud, and expensive-to-repair car technology have all increased costs for insurance companies. As a result, insurers have been raising their prices to cover their expenses.

From 2010 to 2019, the average cost of car insurance increased by more than 50%. Prices have gone up every year. This steady rise in insurance costs has outstripped other consumer costs. Even skyrocketing hospital costs lag slightly behind car insurance.

Overall Cost Increases from 2010 to 2019

• Car Insurance: 52.2%
• Hospital Services: 49.1%
• Cost of Living: 17.2%
• Physician’s Fees: 15.7%

You can’t reverse this industry-wide inflation. But if you want to lower your own insurance costs, address as many of your personal factors as you can. Then get quotes from multiple insurance companies and compare.