Yes. Geico is a good insurance company. Geico has been providing insurance since 1936, and it has an A+ Better Business Bureau (BBB) rating. It also ranked 2nd in WalletHub’s latest comparison of the cheapest major car insurance companies.
Geico’s NAIC rating is 1.601, however, which means it has received more complaints than the average insurance company. On the other hand, it may be encouraging to note that Geico is a wholly owned subsidiary of Berkshire Hathaway, which boasts famous investor Warren Buffet as its chairman and CEO.
Why Geico Is a Good Insurance Company:
A+ BBB rating
AA+ S&P rating
A++ A.M. Best rating
Average rating of 2.9/5 among user ratings on WalletHub
NAIC rating of 1.601
Geico offers a wide variety of insurance products, including policies for your home, vehicle and business, through a network of affiliates as well as non-affiliated companies that specialize in writing different types of insurance policies. You can also bundle policies from Geico for a multi-policy discount.
Geico Insurance Options:
You can get a free quote by contacting Geico online or over the phone at 1 (800) 207-7847.
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.
GEICO pays claims by issuing a check to cover their repair estimate, minus any deductible. Checks are mailed in as little as 48 hours after the accident investigation is completed.
If you are in an accident, you can start your GEICO claims process by filing a claim online at geico.com or calling (800) 841-3000 at any hour. Claims representatives are available 24/7. If your car or motorcycle is safe to drive, GEICO will schedule a time for you to bring it into a local inspection facility. If it is not safe to drive, an inspector will come to the vehicle. The inspection usually occurs within 24 hours of your claim report and takes about 30-60 minutes, after which you will receive a written repair estimate.… read full answer
For a simple claim with a clear cause of accident and no injuries, GEICO will send you a check within a few days. If your repair shop wants to charge more than GEICO’s estimate to fix your vehicle, you should negotiate with them. Ask them to honor the estimate. If they do not, the additional cost is yours to cover. Or you can try a different repair shop. You can use GEICO's Auto Repair Xpress program to find a shop near you that will work speedily with GEICO to repair your car.
So, GEICO’s claim-payment policies are pretty straightforward most of the time. In fact, the standard process can be broken down into a handful of simple steps.
How the GEICO claims process works:
You contact GEICO after an accident.
GEICO inspects your car.
GEICO sends you a check for the estimated repairs.
You take your car to be repaired at the body shop of your choice.
Things can get more complicated in certain situations, though. If your vehicle is considered a total loss, for example, it will likely take 7-10 days overall to receive your check. In addition to having the inspection and reviewing your settlement offer from GEICO, you will need to find your vehicle title, collect your belongings from the vehicle and sign paperwork releasing the vehicle before your claim is paid out.
If someone in the accident alleges that you were at fault and claims to have suffered vehicle damage or an injury, GEICO will investigate. A GEICO examiner will contact the drivers and passengers involved, as well as any witnesses, to get their accounts of the accident. The examiner will also review police reports, state and local traffic laws, and photos of the scene and vehicles, along with applicable medical information. Claims settlement can take longer to complete – up to several months, in some cases – as a result.
Geico insurance is a good choice for new drivers, offering competitive rates, multiple discounts, and resources that develop and reward good driving habits. Geico’s rates are reported to be 12% to 34% cheaper than average, depending on the state, and Geico ranks among the most affordable car insurance companies for young drivers.… read full answer
Car insurance for a learner’s permit or newly licensed driver is going to be expensive at first, regardless of insurer, since age and years of driving experience are major factors affecting premiums. But new drivers who complete a driver education course or participate in other driver safety programs can get discounts with Geico. Students might also be eligible for a discount with Geico if they have good grades, attend certain universities, or belong to eligible student organizations.
New drivers can save with Geico even without good grades and drivers ed, though. Take advantage of these tips to get the best rate on Geico insurance.
Geico Insurance Tips for New Drivers
Drive a modest car
You can save a lot on your premium just by choosing the right car. Geico has a variety of vehicle-related discounts, including a 15% discount for cars up to three model years old. Geico also has discounts for air bags, anti-lock brakes, and anti-theft systems.
The best way for new drivers to save on insurance is to drive safely and gain experience slowly. Fewer accidents and moving violations mean lower rates now and in the future—new drivers can save as much as 26% with Geico after 5 years of safe driving.
If you decide to add a new driver to your current Geico policy, you may be able to save as much as 25% for insuring multiple vehicles or bundling with other policy types, like homeowner’s or renter’s insurance.
It’s not a good idea to skip coverage you really need, but reducing unnecessary coverage can help new drivers make insurance more affordable. For example, there are some cases in which you may want to consider dropping full coverage on an older car.
Raise the deductible
Agreeing to pay more out of pocket before insurance kicks in after an accident can reduce the cost of an insurance policy. Drivers across the country save an average of around 10% by going with a deductible of $1,000 instead of $500, for instance.
Geico insurance rates for new drivers are usually competitive, but you should always compare quotes from several insurance companies to make sure you get the best rate.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.