GEICO vs. State Farm

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

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.

State Farm is so cheap because the company has more customers than any other provider, and their large market share allows them to keep their prices competitive. A minimum coverage policy from State Farm costs an average of $77 per month, and State Farm premiums can be made even cheaper by taking advantage of discounts such as passive restraint discount and anti-theft discount. Plus, State Farm rewards customer loyalty with discounts for insuring more than one car and bundling multiple policies, such as home and auto.

Average Monthly Rates for State Farm vs. Top Competitors

Note: Premiums are representative of a 45-year-old good driver in CA; individual premiums will vary.

State Farm is especially cheap for young drivers in particular. That's because State Farm has special savings opportunities for drivers in this category, such as discounts for students who maintain at least a 3.0 GPA.

Your final premium is based on a variety of factors, though, such as your driving record, insurance history, and more. Every insurance company determines their rates differently, so even though State Farm is among the cheapest car insurance companies, the only way to confirm you've found the lowest price is to compare quotes from multiple companies.

To learn more, check out WalletHub's review of State Farm and see State Farm's full profile.

Yes. Geico is a good insurance company. Geico has been providing insurance since 1936, boasts an A+ Better Business Bureau (BBB) rating, and is one of the cheapest major car insurance companies according to WalletHub's research.

However, Geico's NAIC rating is 1.33, 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.

Geico Insurance Company Ratings

• A+ BBB rating
• AA+ S&P rating
• A++ A.M. Best rating
• Average rating of 2.5/5 among user ratings on WalletHub
• NAIC rating of 1.33

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.

You can get a free quote by contacting Geico online or over the phone at (800) 207-7847.

The Geico good driver discount is up to 22% for qualifying policyholders. To qualify for the Geico good driver discount, drivers must be accident-free for five years, and this can even include time that you've been insured by another company.

After you get into an accident, you will have to wait five years in order to qualify for the discount again. Additionally, accidents that are forgiven by Geico accident forgiveness still count against your good driver discount, even though your base premium will not go up.

If you don't qualify for Geico's good driver discount, there are still ways to save on your premium. For example, Geico offers a multi-vehicle discount for drivers who insure more than one car on their policy. You can also lower your rate by altering your coverage or increasing your deductible.

To learn more, check out WalletHub's guide to Geico discounts.

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.

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.

State Farm does not have a set time limit for filing claims and will consider a claim even if it is filed months or years after the incident occurred. However, State Farm is more likely to deny a claim if the delay was unreasonable or if it compromised their ability to investigate.

Your State Farm car insurance policy likely requires you to report an accident “promptly” or “as soon as possible.” But even though you have to immediately report the accident, that does not mean you have to immediately file a claim. In fact, you can wait 1-10 years to file a claim, depending on your state's laws and the type of claim you need to file.

It's important to keep in mind that the longer you wait to file a claim, the more difficult it will be for your insurance company to investigate and approve it. Filing a claim as soon as possible helps to ensure that everyone remembers the details of the accident and the evidence is still intact, so your claim is less likely to be challenged.

State Farm allows you to file a claim online, over the phone, or through the mobile app. If you have any questions, you can call customer service at 1-800-782-8332.

You can lower your Geico car insurance costs by taking advantage of Geico discounts, opting for a higher deductible, and reducing your coverage, among other things. Geico considers a variety of factors when calculating your premium, though some – like your age and location – are out of your control. Fortunately, you can take steps to influence other factors in order to lower your rate.

How to Lower the Cost of Car Insurance from Geico

Use Geico's auto insurance discounts

Geico offers a wide variety of discounts that can help you lower your overall car insurance bill. For example, drivers can get a discount of up to 15% if they insure a car that's three years old or younger. Or you can save up to 25% on your premium if you insure more than one car with Geico.

Raise your car insurance deductible

Opting for a higher deductible on any of your insurance policies from Geico can lower your premium. But if you decide to go this route, it's important that you choose a deductible amount that you can still afford if you suddenly need to file a claim. Otherwise, you might not be able to use the coverage that you have.

Reduce your car insurance coverage

Most states require a certain amount of bodily injury liability and property damage liability coverage. But there are other coverage options (like comprehensive, collision, personal injury protection, and uninsured motorist) that you may not have to purchase, depending on your state. Less coverage usually means lower premiums, but it could also lead to higher costs in the long run, so it's important to approach coverage decisions with caution.

Improve your driving record

Practicing safe driving habits and avoiding moving violations can help you qualify for lower Geico insurance rates long-term. You may also be able to attend traffic school in order to remove a violation or points from your record, depending on your state. Geico even offers a maximum 15% discount to drivers who take an approved defensive driving course.

Build and improve your credit

Because your credit history is correlated with your likelihood of filing an insurance claim, Geico uses your credit data to calculate your premium in states where it is legal. As a result, having good credit makes you less of an insurance risk, which will reduce your rates over time.

Drive less

Whether you can shorten your commute to work, use more public transportation, or even ride a bicycle more, driving fewer miles each year could lower your Geico premium.

Drive an insurance-friendly car

Expensive cars, sports cars, and cars with high rates of theft are considered to be riskier to insure than cheaper, more practical vehicles. Before you buy a new car, get a new quote from Geico to see how it will affect your rate. If the cost is out of your budget, then you should probably choose a different car.

Sign up for DriveEasy

DriveEasy, the Geico telematics program rewards you for good driving with a discounted premium. Specifically, DriveEasy tracks distracted driving, hard braking, cornering, smoothness, road type, distance driven, weather, speed, and the time of day that you drive. By using DriveEasy, drivers can save up to 25% on their rate.

Finally, if you're still struggling to afford your Geico policy, you should consider switching insurers. Even if you're not actively looking for a new policy, it's generally a good idea to compare quotes from three different companies every 6-12 months. To learn more, check out WalletHub's guide to switching car insurance companies.

You can lower your State Farm car insurance costs by taking advantage of State Farm discounts, opting for a higher deductible, and reducing your coverage, among other things. State Farm considers a variety of factors when calculating your premium, though some – like your age and location – are out of your control. Fortunately, you can take steps to influence other factors in order to lower your rate.

How to Lower the Cost of Car Insurance from State Farm

Use State Farm's auto insurance discounts

State Farm offers a wide variety of discounts that can help you lower your overall car insurance bill. For example, drivers can get a discount of up to 25%  if they've been insured with State Farm for at least three continuous years without an accident . Or you can save up to 25% on your premium if a high school or college student listed on your policy maintains at least a 3.0 GPA.

Raise your car insurance deductible 

Opting for a higher deductible on any of your insurance policies from State Farm can lower your premium. But if you decide to go this route, it's important that you choose a deductible amount that you can still afford if you suddenly need to file a claim. Otherwise, you might not be able to use the coverage that you have.

Reduce your car insurance coverage 

Most states require a certain amount of bodily injury liability and property damage liability coverage. But there are other coverage options (like comprehensive, collision, personal injury protection, and uninsured motorist) that you may not have to purchase, depending on your state.

Less coverage usually means lower premiums, but it could also lead to higher costs in the long run, so it's important to approach coverage decisions with caution.

Improve your driving record

Practicing safe driving habits and avoiding moving violations can help you qualify for lower State Farm insurance rates long-term. You may also be able to attend traffic school in order to remove a violation or points from your record, depending on your state. State Farm even offers a 10-15%  discount to drivers who take an approved defensive driving course.

Build and improve your credit

Because your credit history is correlated with your likelihood of filing an insurance claim, State Farm uses your credit data to calculate your premium in states where it is legal. As a result, having good credit makes you less of an insurance risk, which will reduce your rates over time.

Drive less

Whether you can shorten your commute to work, use more public transportation, or even ride a bicycle more, driving fewer miles each year could lower your State Farm premium.

Drive an insurance-friendly car

Expensive cars, sports cars, and cars with high rates of theft are considered to be riskier to insure than cheaper, more practical vehicles. Before you buy a new car, get a new quote from State Farm to see how it will affect your rate. If the cost is out of your budget, then you should probably choose a different car.

Sign up for Drive Safe & Save

Drive Safe & Save, the State Farm telematics program, rewards you for good driving with a discounted premium. Specifically, Drive Safe & Save  tracks miles driven, acceleration, braking, turns, speed, and distracted driving. By using Drive Safe & Save, drivers can save up to 50% on their rate.

Finally, if you're still struggling to afford your State Farm policy, you should consider switching insurers. Even if you're not actively looking for a new policy, it's generally a good idea to compare quotes from three different companies every 6-12 months. To learn more, check out WalletHub's guide to switching car insurance companies.

No, Geico does not offer a specific low mileage discount. Geico premiums do take mileage into account, however, as rates are an average of 27% lower for customers who drive 7,500 miles annually than for customers who drive 15,000 miles annually, according to WalletHub data.

Low mileage drivers usually save on their Geico premium because less time on the road means a smaller chance of filing a claim. Besides offering lower premiums for low mileage drivers, Geico offers good student, good driver and defensive driving discounts, among others.

It's also worth noting that Geico has a usage-based insurance program called DriveEasy, which can help low mileage drivers save money. DriveEasy tracks mileage and other driving habits, saving policyholders up to 20%.

To learn more, check out WalletHub's guide to Geico discounts.

State Farm roadside assistance is worth it for drivers who are looking for basic coverage at a low price. State Farm customers can purchase roadside assistance as a policy add-on for around $10 to $24 per year in order to get coverage for things like towing, gas delivery, and locksmith services. The exact cost of State Farm's roadside assistance add-on varies based on the state, the type of vehicle, and other factors.

What Does State Farm Roadside Assistance Cover?

• Free towing for 10+ miles or to the nearest repair location, if the car isn't in drivable condition, according to customer service representatives.
• Mechanical or locksmith labor at the breakdown site for up to one hour.
• Winching if the vehicle is stuck on or next to a public road.
• Deliveryof gas, oil, a car battery, or tires in order to make the car drivable (the cost of the items is not included).

Since State Farm roadside assistance is fairly basic compared to the roadside assistance provided by an auto club, it might not be worth it for drivers who want robust coverage and extra perks.

State Farm Roadside Assistance Ranking

State Farm roadside assistance ranks 10th out of 22 companies according to WalletHub's analysis of the best roadside assistance providers. It is budget-friendly and a good fit for people who need coverage for small, occasional issues.

However, State Farm only offers one plan for roadside services, so it may not be the best choice for drivers who want additional towing miles, discounts at places like restaurants and hotels, and more perks.

State Farm Reviews and Ratings

• Reviews on WalletHub: 3.5/5
• J.D. Power: 4.2
• NAIC: 1.18
• BBB: A+

Major insurance companies that rank above State Farm when it comes to roadside assistance include Travelers, Nationwide, and Progressive, since they offer more coverage options.

How to Decide if State Farm Roadside Assistance Is Worth It for You

Your driving habits, budget, and whether you currently have State Farm insurance are the most important factors when deciding if it's worth purchasing roadside assistance through State Farm. If you have a short commute, drive locally, and don't anticipate needing winching or long-distance towing, it may be worth it to add State Farm's roadside assistance to an existing policy or to switch insurers if you're not a current State Farm customer. However, if you have a long commute or frequently take road trips far from home, State Farm might not provide enough coverage for you.

If State Farm roadside assistance does not offer enough coverage for your specific needs, you can compare quotes from other companies and consider switching to another insurer. Alternatively, you can maintain your State Farm policy and purchase roadside assistance from an auto club like AAA, Better World Club, or Good Sam. Auto clubs are generally more expensive than State Farm roadside assistance but provide more coverage along with discounts and perks. 

To learn more, check out WalletHub's review of State Farm.