Geico Insurance Review 2021

No, Geico does not offer gap insurance. Unlike seven of the top 10 car insurance companies, Geico does not sell gap insurance, a specialty type of coverage that pays for the difference between a totaled car's value and the driver's loan or lease balance.

You have several options if you're a current Geico customer and are looking for gap insurance. You could switch insurers and purchase a policy from a company that does offer gap insurance (or loan/lease payoff coverage, which is similar), like Nationwide or Progressive. You could also maintain your policy with Geico and purchase gap insurance from a dealership or a stand-alone company. However, it's worth noting that dealership gap insurance is often the most expensive option, since it's usually rolled into your loan and charged interest.

For more information, check out WalletHub's complete guide to gap insurance.

Yes, Geico insurance rates are competitive, since the company is one of the five cheapest insurers nationally, according to WalletHub's cheap car insurance analysis. Geico car insurance costs an average of $506 annually, or $42 per month.

Geico's car insurance rates are based on your driving record and experience, along with factors like the type of car you drive, your ZIP code, your insurance history, and more. Your coverage and deductible choices also impact your final quote, as do your eligibility for discounts.

Sample Geico Car Insurance Rates

These sample quotes are representative of Geico's insurance prices, but individual results will vary. To learn more about how we obtained these sample quotes, check out the methodology section of our complete Geico car insurance review.  

Yes, Geico offers mechanical breakdown insurance for new or leased cars that are less than 15 months old and have less than 15,000 miles on them. Geico mechanical breakdown insurance (MBI) is a policy add-on that insures a vehicle against mechanical problems, such as transmission or engine failure, which are not covered by standard car insurance policies.

However, mechanical breakdown insurance will not pay for routine maintenance, wear and tear, or damage caused by an accident. Other exclusions to Geico mechanical breakdown coverage include tune-ups, wheel balancing, and suspension balancing, among others.

Geico Mechanical Breakdown Insurance Cost

The cost of Geico mechanical breakdown insurance varies depending on the car, but the average MBI policy costs around $100 a year. Customers will also need to pay a deductible of $250 before Geico MBI goes into effect.

Mechanical breakdown insurance from Geico is a good alternative to an extended warranty from the vehicle manufacturer, which might provide the same type of coverage but will usually cost around $1,500 total. For more information on whether Geico MBI is worth it, check out WalletHub's complete guide to mechanical breakdown insurance.

GEICO is cheap because it sells insurance directly to consumers and offers a lot of discounts. GEICO is not the cheapest insurer out there, though. For example, GEICO ranks 21st for the cheapest car insurance among 46 major companies, based on WalletHub's 2019 GEICO car insurance review. Competitors like Esurance and Progressive are actually a bit cheaper overall.

Still, GEICO is pretty cheap relative to many other major insurance providers, and there are good reasons for that.

GEICO is cheap for many consumers because it offers a wider variety of discounts than many major providers. There are GEICO discounts based on a driver's history and habits on the road as well as any affiliation they have with 800+ eligible organizations, including the federal government. You can also get discounts for taking a driver's education course or making your payments electronically. GEICO offers a number of discounts for having a car with certain safety equipment, too, such as “passive restraint” seat belts and anti-lock brakes. Most consumers qualify for more than one discount, which helps to lower the overall cost of their premiums.

The fact that it sells insurance directly to consumers is another big reason why GEICO is so cheap. This eliminates the cost of middlemen. GEICO has significantly fewer local offices and agents than companies like State Farm and Allstate, limiting agents to high-population areas only. Having a smaller agent network gives GEICO savings it can pass on to its policyholders.

GEICO started with direct phone sales but has grown rapidly in the 21st century by developing easy-to-use sales technology. In fact, GEICO focuses today on keeping their rates low by investing in, and beating the competition in, technology that helps reduce manhours, minimize their cost of selling and increase convenience to consumers. Today, you can use GEICO's advanced website or mobile app to easily find information on insurance or get a personalized quote. You also can check rates and get help with coverage and discount decisions on GEICO's apps for Amazon Alexa and Google Home.

Yes, car insurance goes down at 25 with Geico, since 25-year-olds are no longer considered as high-risk as younger drivers. Turning 25 years old saves drivers an average of 8.53% on a Geico policy, based on quotes for ZIP codes across the country.

Teenage drivers are considered the highest risk customers for insurance companies, since they are particularly likely to get into a serious car crash. As a result, car insurance premiums generally decrease every year from your 16^th birthday until your 25^th.

Car insurance is usually priced per six-month policy, though, so don't expect an instant reduction on the morning of your birthday. Instead, your base premium will likely decrease when you renew your policy after having turned 25 years old.

Just bear in mind that due to other circumstances, some drivers do not pay less after their 25^th birthday. Age is only one factor that affects car insurance rates, so the standard decrease could be counteracted by things like a more expensive vehicle or a history of violations.

Why Your Geico Insurance Might Not Go Down at 25

If you turn 25 years old and buy a fast, new sports car, your premiums will likely increase despite your age. Similarly, new drivers are expensive to insure at any age. Getting insurance with a brand-new license will be less expensive at 25 years old than at 16, but your policy will still cost more than it would for someone with driving experience.

Finally, drivers with a history of tickets, claims, and at-fault accidents might not see a decrease at all when they turn 25. In fact, high risk drivers could pay more for insurance, even after turning 25, if they add more violations to their record.

Geico checks your driving record twice a year, since it sells six-month policies. Insurance companies like Geico check driving records when customers renew their policies, to determine how risky they are to continue insuring. Given that driving-related offenses suggest you are more likely to get into an accident and file a claim, Geico raises premiums for drivers who don't have a clean driving record.

One speeding ticket will raise insurance rates by an average of 25% across insurance companies, for example. Similarly, an at-fault accident increases premiums by 20% to 40%, on average, and 45% at Geico.

Geico uses a points and surcharge system that explains exactly how much your premium will increase for each citation. But since Geico checks your driving record only when it's time to renew your policy, a moving violation will not affect your insurance instantly. And rest assured that an accident or ticket will stop affecting your rates in three to five years.

In the meantime, though, policy renewal is a great time to compare quotes from multiple insurers to be sure you're getting the best deal for the coverage levels you want.

Yes. Geico does insure high-risk drivers. For example, Geico will insure high-risk drivers who have to file an SR-22 or FR-44 form, asserting that they're carrying the minimum insurance coverage required by state law after a DUI or other major moving violation. However, keep in mind that risky drivers are typically charged more expensive insurance premiums.

High-risk drivers aren't just those who have been in several accidents or received many tickets. Teenage or senior (65+) drivers and drivers who haven't had continuous auto insurance coverage are also considered high-risk drivers in the eyes of auto insurance providers. Since so many different factors go into determining a driver's potential risk, such as one's driving record, credit history, residential area and type of vehicle, it's unavoidable that Geico and most other car insurance companies will cover high-risk drivers to some degree.

Geico Insures High-Risk Drivers Who:

• Have little driving experience.
• Have a poor driving record.
• Have a gap in their insurance history.
• Have to file SR-22 or FR-44 (FL and VA residents) forms with the state.
• Have filed multiple claims.
• Live in a densely populated area.
• Are a teenage or senior (65+) driver.
• Drive a vehicle without safety features.

Sometimes, larger auto insurance companies group high-risk drivers under subsidiary companies to keep their policies separate from customers considered less risky. Geico's high-risk subsidiary is Geico Casualty Co., and it specializes in coverage for customers that Geico calls “non-standard risks.” Geico uses its own points system to determine how much of a risk each customer poses, so customers don't need to worry about seeking out the company's high-risk subsidiary directly to get a quote or pay a bill.

You can get a free Geico car insurance quote online or by contacting an agent at 1-800-207-7847.

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.

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.

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.

Emphasize safety

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.

Earn discounts

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.

Reduce coverage

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.

Geico sells mobile home insurance that is written by Assurant, Inc. and secured by Geico. That means Assurant is actually the company that accepts liability and guarantees payment in case any loss or damage occurs. Geico backs this guarantee with its own financial strength, for an extra level of security.

What Geico Mobile Home Insurance Covers

• Fire
• Hail
• Windstorm
• Falling objects
• Vandalism
• Lightening
• Explosion
• Visitor injuries

Geico mobile home insurance protects mobile or manufactured homes as well as personal property that's inside your mobile home and any unattached structures on the same property, such as a shed or detached garage. In most cases, however, a regular Geico mobile home policy will not cover your mobile home while it's being moved.

Other Key Things to Know About Mobile Home Insurance

On average, mobile home insurance costs between $1,400 and $2,300 per year. Mobile homes are generally more expensive to insure than comparable traditionally built homes. Federal rules for manufactured homes have improved their construction quality, but they still tend to be at higher risk for theft, fire, wind, and accidental water damage.

If you own a modular home, rather than a manufactured home, you may purchase regular homeowners insurance. Like mobile and manufactured homes, modular homes are built in a factory and installed on site. But they are constructed more like traditional homes, to meet local building codes.

Most major insurers offer mobile home policies, including Allstate, State Farm, American Modern, American Family Insurance, Farmers, Foremost, HomeFirst, Metlife, and Progressive.

For a personalized mobile home insurance quote, visit the Geico website or call (800) 841-2964.

GEICO will declare a vehicle a total loss if 1) it is too damaged to be safely repaired, 2) repairs would cost more than the vehicle is worth, or 3) the damage meets the total loss guidelines of the state where it's insured.

GEICO determines a vehicle's worth by calculating its “actual cash value.” Actual cash value is based on your vehicle's make and model, mileage, features, add-ons, and condition prior to the accident. It also takes into account how much similar vehicles have sold for recently in your area.

Many states set a total loss threshold, which is the level of damage at which an insurer like GEICO must legally declare a car a total loss. The level of damage is expressed as a percentage of the car's actual cash value. Depending on the state, the threshold can be from 50% to 100%. For example, a car with damage equaling 50% of its value is totaled in Iowa but considered repairable in Texas, where the threshold is 100%.

Twenty-two states have no specific total loss threshold but rely on a total loss formula. In these states, GEICO must total your car if the cost of repairs plus the vehicle's scrap value equals or exceeds its actual cash value.

All these different rules can seem a little confusing, which is why car owners are sometimes surprised when their car is totaled.

Only your GEICO auto damage adjuster can decide to total a vehicle, after inspecting it. Your adjuster will contact you within three days of the inspection to review the proposed settlement amount. GEICO will issue payment, generally within 10 business days, to you or to your leasing or financing company.