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 its 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.
To learn more, check out WalletHub’s review of Geico and see Geico’s full profile.
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
Did we answer your question?