GEICO Car Insurance Policy Review of 2023
GEICO was founded in 1936 and is the second-largest auto insurance company in the nation and is available in all 50 states and Washington, D.C. That means GEICO is always an option no matter where you live in the U.S.
GEICO Auto Insurance Overview
GEICO sells car insurance for several vehicles: cars, motorcycles, classic cars, recreational vehicles (RVs), all-terrain vehicles (ATVs), and boats.
GEICO car insurance is also generally known to offer some of the lowest rates in the industry.
It has affordable rates for most drivers (except those with DUIs), including students, military members, and even those with blemishes on their driving records.
GEICO also offers an easy-to-use website, and it’s a cinch to get a quote and purchase GEICO auto insurance using the insurer’s helpful mobile app.
GEICO is a tech-forward company, so from getting a quote to buying a policy, you can use its website or app without having to talk to—and wait for—an agent via phone.
Still, some may be frustrated by car repairs that take longer than expected to finish and the slow pace at which claims are handled.
While coverages are limited, some of the best are included in a GEICO policy, such as emergency road service, rental car reimbursement, and mechanical breakdown insurance. These and more are available as optional insurance coverages with GEICO-insured vehicles.
Who is GEICO Best For?
GEICO is best for drivers who:
- Want affordable rates
- Want to do business with a huge household name
- Want to get insurance info through a trusty mobile app
- Want a tech-forward company
- Want a company that can lower its already affordable rates by offering a wide range of discounts
- Have a few blemishes on driving record
If you are considering an auto insurance policy with GEICO, we’ll examine GEICO’s costs, coverage options, and more.
GEICO Car Insurance Pros & Cons
- Most affordable among insurers of the same size.
- Lower premiums for those with speeding tickets and at-fault accidents.
- Rates are lower for good drivers.
- One of the few insurers that don’t increase your premium if you have a speeding ticket or poor credit.
- Offers very good rates for those who are expensive to insure: seniors and young drivers.
- Offers accident forgiveness.
- Robust website and mobile app.
- As a tech-forward insurer, GEICO allows you to accomplish most of your insurance needs using its easy-to-use mobile app.
- Many discounts available.
- Bundling with home insurance is available.
- High customer satisfaction and few complaints.
- Can access policy information using Google Assistant or Alexa.
- Easy online quoting and purchasing.
- Slow claims processing.
- Average or inconsistent customer service.
- Coverage options are limited.
- Limited network of local agents.
- Doesn’t offer gap insurance.
- High average rates for drivers with a DUI.
- New car replacement not offered.
- No vanishing deductible coverage.
- The mobile app is more useful than the website.
- Geico’s average discount for bundling auto and home insurance is rather low at 8%.
|J.D. Power (out of 1,000)||824|
|A.M. Best - Financial Strength Rating||A++|
GEICO Car Insurance Standard Coverage
Below are the major coverage types that GEICO offers.
Liability insurance covers property damage or injuries you may have caused to others in an accident. Liability also includes medical payments if you or your passengers were injured in a car accident.
Bodily injury liability pays for injuries you cause to another driver if you are at fault in an accident. It covers a driver’s medical expenses and lost wages if the driver can’t work due to injuries.
Bodily injury liability is required in most states.
Property damage liability kicks in when you damage another person’s property while driving, such as colliding with a fence or ruining a garage or other structure. Property damage will cover any expenses related to repairs or replacements.
Property damage liability is required in all US States
Personal Injury Protection (PIP)
If you are injured in a car accident, regardless of who caused it, PIP will cover any medical treatments you need.
In no-fault states, PIP coverage is mandatory. The total is 14 states.
Similar to PIP coverage, medical payments help pay for the policyholder's and their passengers' medical costs up to the policy limit, regardless of fault.
Medical payments are optional in most states but are required in a few states.
If you are involved in an accident, your collision coverage handles the cost of any damages made to your vehicle.
Comprehensive coverage handles damages relating to natural occurrences that are unforeseen or couldn’t have been predicted. This includes theft, fire, flood, hail, and vandalism.
Comprehensive covers damage to your car that doesn’t result from the collision.
Collision and comprehensive coverage may be required if you lease or finance your car.
Uninsured and Underinsured Motorist
If you are involved in an accident with an uninsured, at-fault driver or a driver who does not have enough insurance to cover the claim, uninsured and underinsured motorist coverage can help cover any damages you incur.
Uninsured and Underinsured Motorist is always an optional coverage. It is only available in some states.
What Coverages Does GEICO Auto Insurance Offer?
Mechanical breakdown insurance (MBI)
MBI pays for unexpected repairs should certain parts fail or break down through normal use. It is similar to an extended car warranty.
You must have a new car less than 15 months old and fewer than 15,000 miles to be eligible.
Normal wear and tear and regular maintenance, such as tune-ups, are not covered.
Compared to other auto insurance companies, Geico stands out for MBI since it is not a common offering,
Emergency Roadside Assistance
Accessible through the GEICO mobile app, emergency road service includes towing, jump-starts, tire changes, lockout services, and fuel delivery.
GEICO offers user-based insurance called DriveEasy, which uses a smartphone app to track habits such as speeding, hard braking, and using your phone while driving.
GEICO evaluates the driving data and adjusts your rate based on your driving.
If you are a safe driver, you’ll have a lower premium.
This optional coverage means your rates won’t increase after your first at-fault accident. GEICO’s forgiveness program is connected to your vehicle’s policy, so it applies to any eligible driver on your policy.
GEICO offers free accident forgiveness after you are accident-free for at least five years.
Rideshare drivers often need insurance to help fill gaps in coverage between their personal auto insurance policies and the insurance provided by the rideshare company. A GEICO rideshare policy costs very little, yet it provides more coverage and a lower deductible than the insurance offered by Uber and Lyft.
Other companies to which GEICO’s rideshare coverage applies:
Amazon Flex, Grubhub, DoorDash, Instacart, Postmates, and
What Coverages Does GEICO Auto Insurance Not Offer?
While GEICO offers some solid coverages, a few are noticeably absent and that other insurers usually have.
GEICO doesn’t offer gap insurance. If you lease or finance a new car, gap insurance pays for the difference between the car’s value and the remaining balance on loan after an accident.
New Car Replacement
GEICO doesn’t offer new car replacements.
You’ll miss out on this good coverage if you choose GEICO auto insurance. Other insurers with new car replacement coverage replace a vehicle with the same make and model if it’s totaled within two model years.
GEICO doesn’t offer diminishing deductibles. Other insurers carry diminishing deductibles if drivers don’t get into at-fault accidents or receive tickets for some time.
How Much Does GEICO Auto Insurance Cost?
GEICO’s premium will differ from everyone else due to many factors. You’ll generally pay less if you have a clean driving record, have never filed a claim, and more.
Here are some of the factors:
- Driving experience.
- If you’ve filed a claim.
- Whether or not there are blemishes on your driving record.
- Accidents that lead you to make a claim.
- Increased rates for those with speeding tickets.
- If you have safety features in your car.
- If you live in a safe area with a low crime rate.
- The more time you drive (such as to and from work), the higher your chance of getting into an accident.
GEICO average auto insurance costs $95 per month or $1,140 per year.
Meanwhile, the national average cost of car insurance is $135 per month or $1,630 per year.
The cost of GEICO auto insurance is far cheaper than the national average.
In addition, it’s also among the cheapest in comparison to other insurers.
GEICO Auto Insurance Discounts
GEICO has a long list of discounts that may help reduce your premium. Combine these discounts with already low rates, and you're likely to save money with the coverage you want when you're on the road.
Notable car insurance discounts through GEICO include:
- Multi-Policy. Most auto insurers offer the standard discount. If you bundle auto and home, you’ll save.
- Multi Car. Also, a standard. Adding a second car or more to your policy will get you a discount.
- New Car. You get a discount if your car model is three years old or newer.
- Safe Driver. You qualify for a discount if you’ve been accident-free for five years.
- Defensive Driving Course. You can lower your premium if you take a defensive driving course. If you are a young driver, taking a driver’s ed class will get you a discount.
- Anti-Lock Brakes. Get a discount if you have factory-installed anti-lock brakes.
- Military. You'll get a discount if you are a current or former military and have spouses.
- National Guard or Reserves. Being a National Guard or Reserves member will give you a discount.
- Good Student. If you are a full-time student with a GPA of 3.0 or higher or on the National Honor Society, you’ll save.
How Long Does It Take For GEICO to Process a Claim?
GEICO pays claims by check once the accident investigation has finished. It usually mails you a check within 48 hours after the completion of the investigation.
How Do I File a Claim?
You can call the insurer’s claim department, file a claim, or check the status of a current claim at any time using the GEICO mobile app.
How Does GEICO Compare with Other Auto Insurance Companies?
A review of any insurance company is most useful when it’s easy to compare what they offer with what their competitors can provide.
Here’s a look at how GEICO compares with two of its top competitors, Progressive and State Farm.
Progressive Car Insurance
GEICO comes out on top in most categories, including discounts, pricing, and more affordable rates for drivers with poor credit or who have some blemishes on their records. These factors make GEICO a strong choice for most drivers.
But GEICO and Progressive are alike in a few instances.
They have the same ways of reaching customer service.
That includes in-person, phone, live chat, email, and mobile app support.
In addition, GEICO and Progressive policyholders can take advantage of 24/7 customer support, 365 days per year.
GEICO vs. Progressive: How Do They Differ?
GEICO differs from Progressive because it has more unique discounts than Progressive. Also, GEICO is more affordable than Progressive.
Both Progressive and GEICO offer a good deal of discounts. They are similar because they are the only auto insurers in the industry (besides Liberty Mutual) that offer the most discounts.
However, because Progressive does not include a lot of discounts that GEICO offers, GEICO is preferable.
While GEICO beats Progressive in pricing, Progressive is still generally known as one of the cheapest auto insurers in the US and is second in affordability, while GEICO is in first place.
Which Company is Better for Usage-Based Insurance?
Both GEICO and Progressive offer safe drivers at lower rates through usage-based programs.
GEICO has DriveEasy, and Progressive has Snapshot. Both work the same.
Both companies have a mobile app that rates your driving behavior, such as when you drive, how much you drive (do you have a long commute to work or are you a casual driver?), and how you drive (do you speed or use your brakes too much?)
And both financially reward customers for safe driving behaviors and penalize them for risky behavior.
The key takeaway here is that both GEICO and Progressive offer the same type of usage-based insurance.
Progressive and GEICO are both excellent for optional coverages, also called riders. But Progressive has one coverage, gap insurance, that GEICO lacks. So Progressive is generally better when it comes to riders, and many are not listed here.
Both companies do not have new car replacement coverage.
Progressive and GEICO offer rideshare insurance, accidental forgiveness, roadside assistance, and rental car reimbursement.
Progressive has gap insurance, while GEICO does not.
Who is Best According to the Type of Driver?
GEICO is the best because it covers more drivers who have blemishes on their records and young drivers. Meanwhile, Progressive is only best for drivers with a DUI.
Because GEICO generally has one of the most affordable rates in the industry and has excellent financial stability, it can offer generous savings for high-risk drivers.
So, if you are a young driver (teens and young adults are the priciest to insure), have a few blemishes on your driving record, or have poor credit, GEICO may offer you a more competitive rate in comparison to Progressive.
However, GEICO is not for you if you have a DUI conviction.
Progressive may be a good fit for high-risk drivers with a DUI record. The insurer is more affordable for drivers with a DUI than GEICO.
But GEICO scores best in this category because it covers drivers more at risk to insure.
The Bottom Line
GEICO and Progressive provide coverage in all 50 states and the District of Columbia.
GEICO is good for drivers because it is generally known to be the most affordable compared to similar companies like Progressive.
Plus, your rate won’t skyrocket if you get into an accident, damage someone’s property, or have poor credit.
Progressive is good for drivers because it offers many discounts and is generally affordable.
However, on average, GEICO is generally known to be the cheaper of the two.
Also, GEICO blows the competition away because it has exclusive discounts that Progressive lacks, such as discounts for specialized persons such as teachers and active and retired military members.
While GEICO is often a better choice than Progressive, both insurers are alike in many ways, including the number of ways to reach customer support and having usage-based programs that can save you money, to name a few.
But if you are looking for the most affordable rate, consider GEICO.
|J.D. Power (out of 1,000)||803|
|A.M. Best - Financial Strength Rating||A+|
|NAIC Complaint Index||2.24|
State Farm Car Insurance
GEICO comes out on top in most categories, including discounts, pricing, and more affordable rates for drivers, young and old, as well as those who practice safe driving. These factors alone make GEICO the clear winner compared to its competitor, State Farm.
State Farm is one of the largest auto insurers in the U.S. and is closely followed by GEICO for affordability.
They are similar in many ways. Both companies hold strong financial reputations and customer service ratings. And both are brand names that you know and trust and are well-established. State Farm was founded in 1922, and Geico in 1936.
GEICO vs. State Farm: How Do They Differ?
GEICO and State Farm are different in a few ways.
State Farm offers travel expense reimbursement, which GEICO does not.
However, GEICO has a popular add-on coverage many drivers would not go without. Mechanical breakdown insurance (MBI) pays for unexpected repairs should certain parts fail or break down through normal use.
Most standard auto insurers typically don’t offer MBI, including State Farm.
GEICO also offers classic car insurance, which protects drivers who have or use antique cars, sports cars, or other expensive vehicles.
This is often not offered by other insurers, including State Farm.
Which Company is Better for Usage-Based Insurance?
User-based insurance offers discounts based on your current driving habits rather than your driving history. GEICO’s program is called DriveEasy, while State Farm’s offering is called Drive Safe & Save.
State Farm comes out on top for usage-based coverage because it has a more comprehensive program.
GEICO can raise your rate even if you have a few infractions, while State Farm won’t.
State Farm offers its Drive Safe & Save in 46 states, while GEICO’s DriveEasy is only available in 28 states.
Drive Safe & Save also guarantees insurance discounts with each policy renewal.
Finally, State Farm is transparent in its usage-based coverage and will save you up to 30% if you remain a safe driver.
While State Farm publishes the percentage you may receive, GEICO does not.
The takeaway is that State Farm is better than GEICO because it won’t raise your rates if you use a usage-based program. Meanwhile, with GEICO, your rate may go up.
GEICO beat out State Farm because the insurer has more discounts and some unique ones that specialize in coverages for certain people and groups, such as alumni associations and professional groups.
In addition, GEICO’s multi-car discount can net you 25% off your rate, while State Farm can only offer you 20%.
When it comes to pricing, GEICO has the most affordable rates. But State Farm has competitive rates, too, and the cost is negligible between the two when you compare them.
The national average cost of car insurance is $135 per month or $1,630 per year.
Both GEICO and State Farm beat the national average.
The key takeaway is that both GEICO and State Farm are generally known as being the cheapest insurance providers in the nation after USAA. But USAA is only available to military personnel, veterans, and their families, so customers looking for a policy will look elsewhere.
The Bottom Line
State Farm has better user-based insurance and is generally cheaper for drivers with car accidents and a DUI on their record.
But GEICO is the clear winner here because it generally has lower rates than State Farm.
GEICO also has more insurance discounts and offers better deals for specialized drivers, such as young people and those over 65.
Overall, GEICO provides a few policy discounts not offered by State Farm, including a 15% military discount and a 12% discount for federal employees. Geico also offers varying discounts based on partner organizations, like alumni associations and professional groups.
Of the two auto insurers, GEICO has the better multi-car discount, offering 25% off your rate, compared to State Farm, which only offers 20% off your rate.
|J.D. Power (out of 1,000)||814|
|A.M. Best - Financial Strength Rating||A++|
|NAIC Complaint Index||4.29|