Geico is so expensive because car insurance is expensive in general, due to rising costs for insurers. But at $506 per year, the average Geico car insurance policy is actually cheaper than most national competitors. In fact, Geico ranks first in WalletHub’s analysis of the 10 cheapest car insurance companies.
Even though Geico offers cheaper-than-average rates, its premiums can get expensive for drivers with certain characteristics. For example, teenagers pay an average of $3,463 for Geico insurance, compared to $535 for older drivers. Additionally, drivers who recently had an at-fault accident pay an average of $900 for Geico coverage, which is 78% more than drivers with a clean record.
Factors That Can Make Geico Insurance More Expensive
- Being a young or inexperienced driver
- Purchasing a full coverage policy versus minimum coverage
- Causing an accident or being convicted of a moving violation
- Living in a high-risk ZIP code
- Driving an expensive vehicle
- Having a poor credit-based insurance score
If you’re struggling to afford your Geico insurance, there are ways for you to lower your rate. For example, you can take advantage of Geico discounts or reduce your coverage.
In some cases, it might be better to switch insurers altogether. It’s usually a good idea to compare quotes from at least three different insurers to see if you can find a better deal elsewhere. Each insurer uses its own algorithm to calculate premiums, so even if Geico is charging you a high premium, you may be able to find a cheaper policy with another insurer.
To learn more, check out WalletHub’s Geico insurance review.
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