2021 Geico Car Insurance Review

Yes. Geico is a good insurance company. Geico has been providing insurance since 1936, and it has an A+ Better Business Bureau (BBB) rating. It also ranked 2nd in WalletHub's latest comparison of the cheapest major car insurance companies.

Geico's NAIC rating is 1.601, however, 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.

Why Geico Is a Good Insurance Company:

• A+ BBB rating
• AA+ S&P rating
• A++ A.M. Best rating
• Average rating of 2.9/5 among user ratings on WalletHub
• NAIC rating of 1.601

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.

Geico Insurance Options:

• Vehicle
• Property
• Business
• Renters
• Identity protection
• Jewelry
• Life
• Travel/Overseas
• Pet
• Umbrella

You can get a free quote by contacting Geico online or over the phone at 1 (800) 207-7847.

You can lower your Geico car insurance costs by taking advantage of Geico's discounts, opting for a higher deductible, and improving your driving record, among other things. Some Geico discounts are worth as much as 40% off, and customers can apply multiple discounts to a policy to save even more.

At the end of the day, your Geico auto insurance bill is influenced by many factors. Fortunately, you can take steps to influence some of those factors in order to decrease your premium.

How to Lower the Cost of Car Insurance From Geico

Pare Down Your 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 be able to get away with not having, depending on the 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.

Use Geico's Auto Insurance Discounts

Geico offers a wide variety of discounts that you could be eligible for and not even know it. There are discounts for having certain memberships and professional affiliations, for example, as well as discounts for taking defensive driving courses, bundling insurance coverage, and insuring more than one vehicle with Geico.

Choose a Higher 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 to set aside enough money to pay your deductible in case you need to file a claim. Otherwise, you might not be able to use the coverage that you have.

Improve Your Driving Record

Improving your driving record, whether by taking a defensive driving course to get points off your license or making sure you don't get any more tickets, can help you qualify for lower Geico auto insurance rates.

Improve Your Credit Score

Get customized credit improvement advice for free from WalletHub. Improving your credit score could actually make you seem like less of an insurance risk to Geico, so you might see your car insurance costs decrease.

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 premium. Geico customers save an average of 1.3% for driving fewer miles than the national average, according to a study by the Consumer Federation of America. And the less you drive, the more you are likely to save.

Install Safety/Security Devices

Most new cars include safety features like daytime running lights and driver-side airbags, and those will get you a lower rate from Geico. You may also qualify for discounts if your car has other safety features, like anti-lock brakes and full front-seat airbags.

You could be eligible for a lower rate if you install a modern anti-theft device, too, no matter the age of your vehicle. Geico offers savings of up to 25% on the comprehensive portion of premiums for customers who drive a car with an anti-theft system.

Reconsider Where You Live

Car insurance prices vary by zip code. If you're already thinking of moving anyway, choosing the right area could lead to auto insurance savings.

Comparison Shop

Shop around to see what other insurance companies can offer, so that when it's time to renew your Geico auto insurance policy, you'll be able to see if the company can match any lower rates you've been quoted. When shopping around, be sure to find out exactly how much you would be paying for 6-month and 12-month premiums, how much the deductibles would be, and what the coverage limits are.

Finally, if you make changes to lower your Geico car insurance costs, don't forget to make sure your insurance coverage still meets your state's minimum insurance requirements.

No, GEICO does not offer gap insurance at this time and it's unclear whether GEICO has any plans to add gap insurance coverage in the future. Gap insurance covers the dollar amount "gap" between what the car is worth and what is owed on the loan. Gap insurance is also often referred to as “loan-lease coverage,” which offers similar protections.

In 2019, only four out of the top 10 U.S. car insurance companies explicitly offer gap insurance as a coverage option: Progressive, Travelers, Liberty Mutual, and Nationwide. If your auto insurance carrier is not listed here, it's a good idea to give them a call to ask whether gap insurance is available. Some auto insurance companies, like Allstate, may provide gap insurance even if they do not openly advertise it.

You can also check in with your car dealership's financing department to see what kind of offers on gap insurance are available. However, it's important to do some comparison shopping because gap insurance from a car dealership tends to be more expensive than purchasing a policy from a car insurance company.

Finally, if you lease a car, be sure to check your leasing agreement. Gap insurance is often already included in the contract.

GEICO insurance rates are very competitive, ranking 2^nd overall (behind only Progressive) in WalletHub's 2019 Cheap Car Insurance Study. The study compared 46 major car insurance companies for a variety of driver profiles. This means GEICO's rates tend to be lower than those charged by State Farm, Allstate, Nationwide, Travelers, and other popular auto insurers.

Individual results may vary, however. The rates GEICO quotes you are based on your driving record and experience, along with your location, credit score (in some states), vehicle age, and vehicle equipment. Your coverage and deductible choices matter, too.

GEICO tends to have relatively low rates for new drivers and those with less-than-perfect driving records. The following chart shows how GEICO ranks among 46 U.S. auto insurers in terms of monthly costs for different types of drivers. Learn more about how we obtained these sample quotes in the Methodology section of our 2019 GEICO Car Insurance Review.

Sample GEICO Car Insurance Rates:

Those quotes don't take into account GEICO's various discounts. GEICO offers impressive discounts for having multiple policies and certain vehicle safety equipment, for example. But it doesn't have “green car” or loyalty discounts, unlike some of its competitors.

At the end of the day, knowing that GEICO ranks among the cheapest major auto insurers provides a helpful starting point as you shop for auto insurance. But the best option will be the one that gives you the coverage you need, plus excellent service, at a price that fits within your budget.

Yes. Geico offers rental car insurance. Geico rental car insurance is usually included in a driver's personal car insurance policy if the driver carries liability, comprehensive, or collision coverage and is driving in the U.S. Each policy is unique, though, and there may be certain exclusions based on your specific situation. It's very important to confirm the details of your policy by calling customer service at 1 (800) 207-7847 before declining additional coverage at the rental counter.

Geico also offers rental car reimbursement, which helps pay for the cost of a rental car while your personal vehicle is being repaired for a covered claim. If you add rental reimbursement to your policy, your insurance company will pay a fixed amount per day toward the cost of your rental, up to a maximum per-claim limit. You select specific rental car reimbursement limits when you purchase the add-on. For example, if you choose $25 per day/$750 per claim as your rental reimbursement limits, GEICO will pay up to $25 per day but no more than $750 per claim for your rental. Rental reimbursement coverage costs between $2 and $15 per month, on average, but you'll need to call customer service to get a personalized quote and add this coverage to your policy.

Geico Rental Car Insurance Coverage Limits

The same Geico coverage limits that apply to your personal vehicle will also apply to a rental car. If you only carry liability insurance, Geico will pay for the other driver's injuries and property damage after an at-fault accident—but not physical damage to the rental. You need a full-coverage policy to have damage to the rental car covered by your insurer.

If you rent a car similar in value to your personal vehicle, you probably have enough insurance. But if your personal vehicle is a 15-year-old sedan and you decide to rent a 2021 luxury car, you should look into extra coverage. That's because the limits you've chosen for your personal policy may not be sufficient to cover damage to a more expensive rental car.

One option to make up for insufficient coverage when renting a car is to get a collision damage waiver (CDW) from the rental counter, which leaves the rental company responsible if the car is damaged, vandalized, or stolen. In addition to a CDW, rental car companies offer a few other types of insurance if you don't have enough coverage with your Geico policy. These include supplemental liability protection, personal accident insurance, and personal effects coverage.

The insurance offered by the rental company often duplicates coverage drivers already have through health, life, and auto insurance. You may also have rental insurance from your credit card company, which is nullified if you purchase the rental company's coverage.

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.

Geico Insurance Tips for New Drivers

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.

No, Geico does not offer pay-per-mile insurance. However, Geico does have a low-mileage discount and a usage-based insurance program that can make car insurance more affordable if you don't drive much. If you drive fewer than 7,500 miles per year, for example, you could save between 1% and 9% on Geico insurance, depending on where you live. Registering for Geico's usage-based insurance program, DriveEasy, could save drivers up to 20%.

The Geico DriveEasy app monitors driving habits like speeding, hard braking, total mileage, and more using your phone's sensors and GPS location. Geico uses this data to calculate a driving score and adjust your premium discount. Usually, car insurance rates are determined by a driver's history on the road as well as factors like age, credit score, and zip code that help insurers predict future driving behaviors and levels of risk. Usage-based programs like the DriveEasy app, on the other hand, show insurance companies your actual level of risk, so drivers only pay for the insurance they need.

Pay-per-mile insurance is a bit different, since it involves paying a base rate plus a per-mile fee. It's currently offered by one provider, Metromile, in just eight states. Geico may be able to provide more robust coverage just as affordably, though, because they offer such a wide variety of discounts. But if you need cheaper, low-mileage coverage, you should make sure to compare rates from at least three insurers to confirm you get the best price for your unique needs.

Geico does not have a referral discount for bringing new customers to the company. That's not unusual, though. No major insurance company gives policyholders a discount on their auto insurance premium for referring friends and family to become customers. Liberty Mutual used to have a referral program, giving $25 gift cards to participating policyholders whose referral code was used to get a quote by a potential new customer. But even that program was discontinued.

The closest thing Geico has to a referral discount is its affiliate discount program. There are more than 800 organizations partnering with Geico to earn their members a discount of up to 8%. If your university, employer, fraternity, sorority, charity, or other association referred you to Geico, you can get the discount applied to a new policy. If you're already a customer, just call Geico at 800-207-7847 to have your rate adjusted.

The Geico good driver discount is available to customers who have been accident-free for 5 years or more, and it can save policyholders up to 26% on their car insurance premium. To get the discount, the policyholder must have at least 5 years of driving experience, none of the vehicles on the policy can have any points assigned to them, and all drivers on the policy must have been accident-free for the past 5 years. Drivers don't need to have been insured by Geico for the whole 5-year period to be eligible.

Will I lose the good driver discount with Geico if I get a point?

Geico uses a point system to weigh different traffic offenses and decide how much to charge you for insurance. If you get any points, you will lose the good driver discount and could have your premium increased.

Points can be assigned when the policyholder or any driver in your household is involved in an accident or convicted of a major traffic violation. Geico also assigns one point just for adding an inexperienced driver to your policy. So if you're insuring anyone who has been licensed for less than three years, you won't be eligible for the discount.

What if I'm not eligible for Geico's good driver discounts?

If you can't get the Geico good driver discount, or you lose it, there are other ways to save. Geico has discounts for things such as wearing seatbelts, attending defensive driving or driver's ed classes, getting good grades, having certain vehicle safety features, bundling policies, and being affiliated with certain government and corporate organizations.

Geico is one of the nation's most affordable insurers, in part because of the variety of discounts they offer.

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.