GEICO (Government Employees Insurance Company) is an American insurance company that was founded in 1936. Today, GEICO is the second-largest auto insurer in the United States, providing coverage to millions of drivers across the country. In this article, we’ll take a closer look at GEICO and explore what makes it such a popular insurance option for many Americans.
Company Overview
GEICO is owned by Berkshire Hathaway, a conglomerate headed by billionaire investor Warren Buffett. The company offers a wide range of insurance products, including auto, homeowners, renters, and pet insurance. GEICO operates through a direct-to-consumer model, meaning customers can purchase coverage directly from the company rather than going through a broker or agent.
Auto Insurance
GEICO’s auto insurance policies are among its most popular offerings. The company offers a variety of coverage options, including liability, collision, comprehensive, and personal injury protection (PIP). GEICO also offers optional coverages like roadside assistance, rental reimbursement, and mechanical breakdown insurance.
One of the key selling points of GEICO’s auto insurance policies is their affordability. The company is known for offering competitive rates, and customers can save even more money by taking advantage of discounts like multi-car, safe driver, and good student discounts. GEICO’s online quote system makes it easy for customers to get a quote and customize their coverage options to fit their needs and budget.
Homeowners Insurance
In addition to auto insurance, GEICO also offers homeowners insurance to protect your home and personal belongings. GEICO’s homeowner’s policies include coverage for things like fire, theft, and damage from severe weather. Customers can also add on additional coverages like personal property replacement, identity theft protection, and earthquake insurance.
Renters Insurance
If you’re renting a home or apartment, GEICO’s renter’s insurance can provide valuable protection for your personal belongings. GEICO’s renter’s policies cover items like electronics, furniture, and clothing in the event of theft, fire, or other covered events. Like GEICO’s other insurance products, renters insurance is affordable and customizable to fit your needs.
Pros and Cons of GEICO Insurance
There are many reasons why GEICO has become such a popular insurance provider in the United States. Some of the pros of choosing GEICO include its affordability, extensive coverage options, and convenient online quote and purchase process. However, there are also some potential downsides to consider, such as limited availability in certain states and a lack of personalized service from agents or brokers.
| 17-YEAR-OLD FEMALE | 17-YEAR-OLD-MALE | |
| Geico | $3,478 | $3,742 |
| National Average | $5,064 | $5,750 |
For teen females, Geico’s rates are nearly $1,586 lower than the national average, and for male teens, the company’s rates are approximately $2,000 less than the national average. USAA, which is available exclusively to members of the military community, offers the lowest rates for teens, coming in $350 less than Geico for females and nearly $380 less for males. State Farm has the second-lowest rates for female teen drivers, and Geico has the third-lowest. For male teen drivers, Geico has the second-lowest rates, and American Family is third. Geico’s rates are less than half the most expensive rates for teens, which come from Farmers. For female teens, Geico is $4,700 less, and for male teens Geico is nearly $5,200 less.
| 25-YEAR-OLD FEMALE | 25-YEAR-OLD MALE | |
| Geico | $1,346 | $1,357 |
| National Average | $1,757 | $1,860 |
Geico has affordable rates for young adults, coming in at approximately $400 less than the national annual average for females and $500 less than the national average for males. The company has the second-lowest rates in this category among insurers in our rating. For the category, USAA has the cheapest rates, while Farmers has the highest rates for young adults, costing $1,039 more for female young adults and more than $1,200 more for males than Geico.
| 35-YEAR-OLD FEMALE | 35-YEAR-OLD MALE | |
| Geico | $1,200 | $1,242 |
| National Average | $1,470 | $1,488 |
Geico’s sample annual rates are $270 less for females and nearly $250 less for males than the national averages. The lowest rates come from USAA, which are $260 less for females and $300 less for males than Geico’s rates. Premiums for Geico, the second cheapest in this category, are quite a bit lower than Allstate’s, which are the highest. Geico is nearly $900 less for female adults and $827 less for male adults than Allstate.
| 60-YEAR-OLD FEMALE | 60-YEAR-OLD MALE | |
| Geico | $1,153 | $1,202 |
| National Average | $1,332 | $1,376 |
Senior drivers often pay less for car insurance than younger drivers. Geico’s average annual rates for female seniors are $179 less than the national average and $174 less than the national average for males. Geico rates are higher than USAA, which has the cheapest rates for seniors, and slightly higher than State Farm, which had the second-lowest rates in this category. USAA rates are nearly $300 less for females and approximately $325 less for males than Geico’s rates. Allstate’s sample annual rates, which are the most expensive, are $765 higher for females and $754 higher for males than Geico.
| RATE AFTER ONE SPEEDING TICKET | |
| Geico | $1,611 |
| National Average | $1,935 |
Drivers with a speeding ticket on their driving record typically have higher car insurance rates than drivers with a clean record. Even so, Geico’s rates for a driver with one speeding ticket are $324 less than the national average, and the third-lowest in our study. Geico’s rates are higher than USAA’s rates, which are the cheapest we found, and State Farm’s, which are second-lowest. USAA is $379 less than Geico for drivers with a speeding ticket on their record. Farmers, the most expensive insurer in this category on average, is $1,048 more than Geico.
| RATE AFTER ONE ACCIDENT | |
| Geico | $1,949 |
| National Average | $2,212 |
When a driver has an accident, insurance companies often raise their car insurance rates. For drivers with one accident on their driving record, Geico’s average annual rates are $263 lower than the national average. However, they are approximately $500 more than USAA, which has the lowest rates for drivers after an accident, and fifth-lowest overall among insurers we studied. But Geico’s rates are $1,258 less than Farmers, which has the highest sample rates for drivers with an accident.
| RATE AFTER ONE DUI | |
| Geico | $3,049 |
| National Average | $2,675 |
Insurance companies typically charge some of the highest rates for drivers with a DUI on their record. This is the one category where Geico’s rates are some of the highest. They are $374 higher than the national average and $1,332 higher than State Farm, which has the lowest rates for drivers with a DUI on their record. Geico’s rates are $939 less than AAA’s rates, which are the highest rates in the category.
| RATE FOR POOR CREDIT | |
| Geico | $1,975 |
| National Average | $2,894 |
A driver’s credit score is one of many factors insurance companies use to determine car insurance rates. Geico does have lower rates than the national average, specifically $919 less. Geico’s rates are the second-lowest for the category, behind only USAA, which has rates $82 less than Geico’s. Nationwide and Travelers are No. 4 and No. 5, respectively, in this category. AAA has the highest rates for drivers with poor credit, coming in approximately $2,000 higher than Geico’s rates.
| RATE FOR LOW COVERAGE | |
| Geico | $1,134 |
| National Average | $1,470 |
Drivers who want to save money on car insurance often purchase the state-mandated minimum amount of liability coverage. With Geico, drivers who buy minimum coverage pay $336 less per year than the national average. In fact, Geico’s rates are the second-lowest in the category behind USAA. Specifically, USAA’s rates are $171 less than Geico’s rates for minimum coverage. Farmers and Allstate have the most expensive average annual rates for minimum coverage, separated by just $1. Their rates are approximately $880 more than Geico’s rates for minimum coverage.
| RATE FOR HIGH COVERAGE | |
| Geico | $1,374 |
| National Average | $1,643 |
Purchasing higher levels of car insurance coverage results in higher premiums. Higher levels of coverage can include additional protections, such as coverage against bodily injury, and in some states, property damage caused by uninsured or underinsured motorists. Geico offers some of the lowest rates for the category. Geico’s rates are $269 lower than the national average but $290 more than USAA, which has the lowest rates for the category. Geico is third in this category, with annual premiums only $1 cheaper than No. 2-rated State Farm, according to our study. Both are nearly $900 less than Allstate, which has the most expensive rates for drivers who buy high coverage.
Geico offers an array of discounts to help customers save when buying car insurance. Despite that, only 40% of respondents in our survey said they were completely satisfied with the policy discounts offered by Geico. For respondents who have filed a claim with Geico, that number drops to 38%. Discounts available from Geico include the following:
- Air bag discount
- Anti-Lock brakes discount
- Anti-Theft system discount
- Daytime running lights discount
- New vehicle discount
- Good driver discount
- Seat Belt use discount
- Defensive driving discount
- Driver’s educational course discount
- Good student discount
- Emergency deployment discount
- Federal employee discount
- Membership and employee discounts
- Military Discount
- Multi-vehicle discount
- Multipolicy discount
Geico offers some of the lowest rates available across a range of demographics, which may make it a good choice for many categories of drivers. The only exception would be drivers with a DUI since Geico’s rates are some of the highest in our study. The company fared well in our survey for customer service and claims to handle, so drivers who value these factors may want to consider a Geico policy.
You can find out more about Geico car insurance online, by phone, or by reaching out to a local agent in your area.
- Website: www.geico.com
- Customer service number: 1-800-207-7847
- Customer service email address: https://www.geico.com/contact-us/email/
If you need to file a claim, you can do so online, with Geico’s app, or over the phone.
Geico offers the second-lowest average annual rate among insurers in our study. Only USAA, which insures members of the military community and their families exclusively, has a lower sample rate. Across the demographic subcategories we looked at, Geico offers some of the lowest rates, although it is not always the cheapest.
Conclusion
Overall, GEICO is a well-established insurance company that offers a wide range of affordable insurance products to customers across the United States. Whether you’re in the market for auto, homeowners, or renters insurance, GEICO has coverage options that can fit your needs and budget. If you’re looking for a reliable and affordable insurance provider, GEICO is definitely worth considering.
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