McKayla Girardin, Car Insurance Writer
@mckayla_girardin
Geico is so cheap because it sells insurance directly to consumers and offers a lot of discounts. Direct-to-consumer insurance sales eliminate the cost of middlemen and allow Geico to have significantly fewer local offices and agents than companies like State Farm and Allstate. Having a smaller agent network lowers Geico’s overhead costs so they can pass those savings on to consumers.
Average Monthly Rates for Geico vs. Top Competitors
| Company | Minimum Coverage | Full Coverage |
| $39 per month | $163 per month | |
| $60 per month | $219 per month | |
| $46 per month | $189 per month |
Note: Premiums are representative of a 45-year-old good driver in California; individual premiums will vary.
Every insurance company determines their rates differently, so even though Geico is among the cheapest car insurance companies, the best way to make sure you’re getting the cheapest rate is to compare quotes from multiple insurers.
If you want to learn more, you can check out WalletHub’s review of Geico.
Steve Murray, Member
@infromix
GEICO is cheap because it saves money by not hiring adequate staff to service its customers. Customers may save money but pay in other ways, such as very long waits on the customer service line, adjusters who don't return calls or texts, etc.
People also ask
How can I get cheaper car insurance?
The best way to get cheaper car insurance is to compare quotes from multiple companies and then switch to whichever insurer offers the coverage you want at the cheapest rate. Other ways to get cheaper car insurance include taking advantage of discounts, improving your driving record, and raising your credit score.
10 Ways to Get Cheaper Car Insurance
1. Compare quotes every 6-12 months.
Every car insurance company calculates premiums slightly differently,...
read full answer by WalletHub, Financial CompanyWhy did GEICO raise my rates?
GEICO may have raised your rates because of changes to your policy or circumstances. Examples include adding a new type of coverage, becoming eligible for an additional type of discount, being involved in an accident, or buying a new car. Recent economic trends have also driven up auto insurance costs overall, and GEICO’s average premium has increased over the past few years.
Possible Reasons Why Your GEICO Insurance Went Up
- Changes in...
Does GEICO use telematics?
Yes, GEICO uses telematics with DriveEasy, a program that tracks your driving habits using a mobile app. You can get a discount of up to 20% if you sign up for DriveEasy and drive safely. The better you drive, the more you can save with GEICO.
How GEICO's DriveEasy Works
- Tracks distracted driving, hard braking, cornering, smoothness of driving, miles driven, road type, weather, speed, and the time of day that you...
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