Usage-based insurance from Geico benefits safe drivers who drive less than the average person (roughly 12,000 miles per year), but only Geico customers in Pennsylvania and Connecticut can sign up for the program right now. More states will get access soon. All eligible drivers should consider giving it a try, though. Geico offers a discount of up to 20% simply for participating, depending on where you live.
Geico’s usage-based insurance relies on a smartphone app called DriveEasy, which automatically detects your driving—you don’t even have to open and close the program. DriveEasy gives feedback on your driving and scores your habits to determine your discount. Geico guarantees you’ll get the full discount for participating the first term. After that, feedback from the DriveEasy app won’t be used to increase your premiums, but your discount may be reduced based on your score.
Geico’s DriveEasy app monitors:
Time of day
Some of the habits and behaviors that DriveEasy tracks will impact your safe-driver score and discount potential more than others. Distracted driving and total distance driven are given the most weight. The app logs both handheld phone calls and active phone use, but it won’t penalize you for hands-free calls or mounting your phone on the dashboard to use the GPS.
If you already have a Geico policy, call customer service (800-207-7847) to ask about the additional affiliation discount of up to 8%. The discount is currently available to members of more than 800 partner organizations, and any organization with 50,000 or more active members is eligible for the program. Participating organizations include alumni associations, fraternities, sororities, colleges, universities, societies, charities, and large employers. To find out if your organization is among them, you can enter its name or browse through the categories on … read full answerGeico’s website.
Popular Organizations with Geico Affiliation Discounts
National Association of Federal Employees
National Association of Government Contractors
Texas A&M University
National Peace Corps Association
BJ’s Wholesale Club Members
World Golf Tour
If you find an organization that you belong to in Geico's list, go to the organization’s website and sign in with your member credentials, if necessary. You can then go to the section on member benefits and find a link for a Geico insurance quote. Discounts vary by organization and state.
These affiliation partnerships help Geico market its products and expand its customer base. In return, organization members receive discounts on Geico insurance policies. The organizations also receive a fee from Geico for every member who requests a Geico quote, even if they don’t buy a policy.
Geico started using telematics to monitor participating customers’ driving habits electronically in 2019, when the company launched its DriveEasy program. Since then, Geico has expanded DiveEasy and its telematics program across 17 states and plans to offer access to more states in the near future.
Geico is testing the smartphone app in certain markets first because telematics programs are still pretty new to consumers. Only 10% to 15% of U.S. drivers had tried one, as of mid-2019.… read full answer
How does the Geico telematics app work?
The Geico telematics app, DriveEasy, automatically detects when you’re driving without you having to open and close the app during trips. DriveEasy provides feedback on your driving and scores your habits to determine your discount. Currently, the app monitors:
Time of day
Some of these behaviors impact your score more than others. Distracted driving and total driving distance are given the most weight since they are the most likely to increase your risk of an accident. Although the app logs both handheld phone calls and active phone use, it won’t penalize you for hands-free calls or mounting your phone on the dashboard to use the GPS.
The app can tell if you’re the driver or passenger by using your phone’s sensors and GPS location, so you won’t have other people’s driving habits affecting your score. If DriveEasy incorrectly makes you a driver on a trip, you are able to correct it.
How much is the Geico DriveEasy discount?
Geico guarantees you’ll get the full discount just for participating, which could be as much as 20%. How much you’ll save for trying the app depends on your location. Feedback from the DriveEasy app won’t be used to increase your premiums, but your discount may be reduced based on your score. The user agreement does say that Geico can use information from the app as part of its investigation of a claim, though.
States Where Geico's DriveEasy Program is Available
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.
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