2023 Geico DriveEasy Review

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.

Geico started using telematics to monitor participating customers' driving habits electronically in 2019, when the company launched its DriveEasy program. Since then, Geico has expanded DiveEasy and its telematics program across 17 states and plans to offer access to more states in the near future.

Geico is testing the smartphone app in certain markets first because telematics programs are still pretty new to consumers. Only 10% to 15% of U.S. drivers had tried one, as of mid-2019.

The Geico telematics app, DriveEasy, automatically detects when you're driving without you having to open and close the app during trips. DriveEasy provides feedback on your driving and scores your habits to determine your discount. Currently, the app monitors:

• Distracted driving
• Hard braking
• Time of day
• Miles logged

Some of these behaviors impact your score more than others. Distracted driving and total driving distance are given the most weight since they are the most likely to increase your risk of an accident. Although the app logs both handheld phone calls and active phone use, it won't penalize you for hands-free calls or mounting your phone on the dashboard to use the GPS.

The app can tell if you're the driver or passenger by using your phone's sensors and GPS location, so you won't have other people's driving habits affecting your score. If DriveEasy incorrectly makes you a driver on a trip, you are able to correct it.

Geico guarantees you'll get the full discount just for participating, which could be as much as 20%. How much you'll save for trying the app depends on your location. Feedback from the DriveEasy app won't be used to increase your premiums, but your discount may be reduced based on your score. The user agreement does say that Geico can use information from the app as part of its investigation of a claim, though.

States Where Geico's DriveEasy Program is Available

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.

No, Geico does not offer pay-per-mile insurance. Geico does have a low-mileage discount for people who drive fewer than 7,500 miles per year and a usage-based insurance program called DriveEasy that can make car insurance more affordable. Registering for Geico's usage-based insurance program could save drivers up to 20%.

Alternatives to Geico Pay-per-Mile Insurance

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 offers several discounts that reward safe driving with reduced premiums. One Geico safe driver discount is available to policyholders who complete state-approved defensive driving classes. The program is available in all states except North Carolina, Michigan, Massachusetts, Vermont, and Hawaii. Every state has different rules for approved defensive driving courses and discount eligibility, but drivers can expect to save 5% to 20%. A 10% discount is most common with Geico.

Even though Geico's defensive driving discounts vary by state, most have similar requirements. For example, your state may require you to be at least 50 years old, have a valid license, and have no recent at-fault accidents or moving violations on your record. You also need to complete the course voluntarily, not because it was court-ordered.

Approved online defensive driving classes are available in every state except Ohio, where you must have four hours of classroom or field training to get the discount. In all other cases, a course offered by the National Safety Council, American Safety Council, or Defensive Driving by IMPROV will earn the discount. Geico policyholders get a discount on the price of the class, and then course administrators notify Geico directly to apply the policy discount after course completion.

More Safe Driver Discounts From Geico

Geico has a good driver discount of up to 26% that is available to customers who've been accident-free for 5 years or more. You could meet the requirements for both the defensive-driving-course discount and the good driver discount to maximize your safe-driver savings.

Other Geico discounts reward safe driving habits, too. For example, Geico offers a discount of up to 15% for always wearing your seatbelt. That's applicable to the portion of your premium that covers medical payments or personal injury protection.

The best way to find out exactly how your safe driving could lead to savings with Geico is to get a quote online. You can also call Geico customer service at 800-207-7847 for more information.

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 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.

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.

Completing a Geico defensive driving course qualifies drivers for a discount of up to 5% or 10% on their Geico car insurance premium. Geico-approved online defensive driving courses cost $14.95 to $24.95, depending on the provider and your state of residence.

Why a Geico Defensive Driving Course Is a Good Idea

In general, Geico defensive driving courses improve students' driving skills by teaching them how to react effectively in hazardous situations. Main topics include how to drive in bad weather and on wet or icy roads, how to correct course if you lose control, how to veer off the roadway safely, and how to react if something crosses into your lane suddenly. Courses also cover the dangers of road rage, speeding, aggressive driving and driving under the influence.

Geico's defensive-driving course discount is available in most (but not all) states, and rules and qualifications vary. Geico has a convenient directory to help you learn more about the defensive driving requirements in your state.

Geico Defensive Driving Discounts in Major States

• California – up to 5%
• Texas – up to 10%
• Florida – up to 10%
• New York – up to 10%
• Illinois – up to 10%
• Pennsylvania – up to 10%
• Georgia – up to 10%
• New Jersey – up to 5%

If you already have a course in mind, check with Geico to see if that course will qualify you for the discount. You can also find an approved Geico defensive driving course, and learn how to sign up, through the National Safety Council or the American Safety Council. Many states offer the option of taking the course online rather than in a classroom.

Geico does not currently offer a dash cam discount. Geico has discounts for cars with certain safety features, but a dash cam is not one of them. Features like air bags, anti-lock brakes, anti-theft systems, and daytime running lights earn discounts on various coverage types. Anti-lock brakes, for example, could save you 5% on collision coverage.

No major U.S. insurance company has a discount for drivers with a dash cam in their car. Instead, insurers are using telematics technology. This electronically monitors certain driving habits, usually through a smartphone app. Geico launched its telematics program in 2019 and is currently testing the app in limited markets.

Geico's DriveEasy app offers feedback about your driving and gives an overall score to set your discount. Right now, the app monitors distracted driving, hard braking, time of day, and total miles logged. The information from the app won't be used to raise your rate, but your discount can be lowered based on your score. Geico can also use the app to help investigate any claims.