Geico Auto Insurance

by Nikola Djurkovic
Carsurance Verdict: Geico is as cheap as the ads promise, its financial strength is world-class, and its website and mobile app are as good as it gets. However, its customer service is average, and Geico does not offer GAP insurance. Still, we recommend getting a quote from Geico.

Geico is one of the most well-known insurance companies in the world. Their slogan is “15 minutes can save you 15% percent or more on car insurance.” Unless you’ve been hiding under a rock for the past 20 years, you have certainly seen one of their commercials and probably laughed along the way. In its commercials and on its website, the company presents itself as an affordable and straightforward insurance provider that gets the job done for the lowest price. To determine if this is true, we looked at many Geico insurance reviews, our data, and other expert analyses.

Geico’s name is an acronym for Government Employees Insurance Company. Founded in 1936 as a government workers insurance company, it grew to become the second largest car insurer in the US, behind State Farm. It’s headquartered in Chevy Chase, Maryland, and is owned by Warren Buffet’s powerful Berkshire Hathaway. It seems that Geico is everywhere—their name appears on Washington Wizard jerseys, Germain Racing cars, and even in Kanye West’s song “Gold Digger.”

Product Overview

Features

Geico car insurance is available in all 50 states and in the District of Columbia. The company has a polished, no-nonsense website, where all the relevant information is logically organized and clearly presented. You can request a quote or file and track a claim online. Geico also has a mobile app, which lets you pay bills, download documents, or call roadside assistance, and it even has its virtual assistant, named Kate, which is there to answer your insurance-related questions. Geico’s mobile app is among the best-rated insurance apps on Google Play and in the App Store. It is convenient, easy to navigate, and it has all the features you need.

Since Geico sells its insurance directly to consumers, bypassing unnecessary interaction with agents to cut costs, it has a smaller number of agents compared to the competition. Since this has been brought up in a few Geico car insurance reviews, customers who prefer to be in touch with their agent constantly should keep this in mind when considering Geico for their car insurance.

Geico promises low prices and many discounts in their commercials, and the company certainly delivers. The premiums are competitive to start with, and they can be reduced significantly by using a variety of discounts. On the other hand, the customer service and additional coverage options are average or slightly above average compared to the competition. While Geico is focused on offering the basic options most people will need, there are also some exciting and unique features in the company’s product range.

Signature Feature: Prime Time Contract

One of such features is Geico’s Prime Time Contract. We agree with other Geico car insurance reviews that this option is an exceptional feature. This feature is not available in all states, but it is still very nice to see a company offering guaranteed services to reliable customers. If you are 50 years or older, your policy has no drivers under 25 years, you’ve had no violations or accidents in the past three years, and you do not use the vehicle for business purposes, you can sign up for the Prime Time Contract when you get your first Geico car insurance policy. You will also have guaranteed policy renewal.

Financial Strength

Just as the sun rises in the east and water is wet, Berkshire Hathaway is a financially stable company. Some sentences simply sound true when you say them. Being ranked third in 2018’s Fortune 500 list, ahead of Apple and Amazon, does not diminish the company’s financial reputation either. Warren Buffet obviously knows a thing or two about handling the company’s finances.

Given the fact that Geico is subsidiary of Berkshire Hathaway, the strength of the parent company is transferred to the smaller enterprise (however there’s nothing small about Geico—it would have ranked 112th on its own). Thus, it comes as no surprise that the Geico insurance company rating from A. M. Best is the highest possible, which is A++ or “Superior.” Geico seems to go hand in hand with a strong financial capability to pay customers’ claims.

Types of Insurance Offered

The basic coverage options are collision, comprehensive, property damage liability, bodily injury liability, medical expenses, personal injury protection, and underinsured/uninsured motorist protection. Geico does not offer as many optional coverages like some of its competitors do, with some notable options, like the gap coverage, missing. However, we agree with other Geico insurance reviews that the company offers enough options to satisfy the average consumer. Optional coverages are the following:

Roadside Assistance – If your car breaks down, this coverage can help. It includes towing, battery jumps, tire replacement, locksmith assistance, and other similar services. Geico notes that their policies are much cheaper than what their competitors offer, costing as little as $14 a year for a single car.

Rideshare Insurance – As you’ll be reminded in other Geico car insurance reviews, this option is available only in selected states. It expands the insurance offered to ridesharing companies such as Uber and Lyft by providing coverage when you are connected to the app and waiting to be matched with a passenger. Geico even provides coverage for companies like Amazon Flex, Instacart, Postmates, and GrubHub, which often do not have an app.

Rental Car Reimbursement – This option covers the cost of a rental car while you are waiting for your damaged vehicle to be repaired or if your car is totaled and you are shopping for a new one. Rental Reimbursement does not pay for the costs of gas, mileage, or the security deposit required by a car rental company. If you opt for Enterprise Rent-A-Car, Geico will pay the bill directly—another positive in some Geico insurance company reviews. However, if you choose another rental company, you’ll have to pay out of pocket, and Geico will later reimburse you.

Accident Forgiveness – This coverage stops your rate from increasing after your first at-fault accident. Geico’s accident forgiveness is per policy, meaning any eligible driver can use this option. This coverage can be earned or purchased. This option is not available in California, Connecticut, or Massachusetts.

Mechanical Breakdown Insurance – This coverage is a cheaper alternative to the extended warranty offered by most car dealers. It is available for a leased or a new vehicle that is less than 15 months old with less than 15,000 miles on the odometer. It has a $250 deductible, and it covers repairs on all mechanical parts of the vehicle. Once purchased, it can be extended for up to seven years or 100,000 miles.

Customer Service

Geico’s score is about average when it comes to their customer service. Geico Insurance Company has a rating of 3 stars out of 5 in J.D. Power’s 2018 study for both claims satisfaction and insurance shopping, ranking in the middle of the pack for those categories. In the regional J.D. Power’s ranking for 2018, the company scores all over the board, sometimes being near the top, and occasionally close to the bottom.

The regions where Geico has its lowest scores are California, New York (second from the bottom), and the Southwest (third from the bottom). If you are based in these areas, and if you are looking for cream of the crop customer service, you may want to check out other companies. In all other regions, you will not be worse off for choosing Geico over the competition.

Geico insurance reviews by the BBB (Better Business Bureau), show it holding a score of A-. The company’s NAIC ratio is 0.62, which is an excellent score. This ratio indicates how many complaints the company receives relative to its size. The lower the ratio, the smaller the number of complaints. Progressive, another insurance company that is known for its budget prices, has an NAIC ratio of 0.75.

Ratings of Geico Auto Insurance in customer service


Geico has 1.2 stars per customer reviews on BBB ; however, most of the insurance companies we tested get low scores in these reviews. Some Geico claims reviews, specifically, are not necessarily positive. On websites like Yelp, where Geico has 1.5 stars out of 5, there are many customers complaining about how their claims were handled or that their premium was increased for no apparent reason. However, this should not disqualify Geico, since no car insurance company is immune to negative reviews on websites like these.

Our overall impression is that, while Geico’s customer service is not amazing, it’s still solid enough that it won’t be a huge issue.

Discounts

We agree with Geico auto insurance reviews that the company offers a substantial number of discounts which can bring the premium down significantly. Furthermore, we appreciate how car insurance discounts are displayed on Geico’s website. There are percentages that show the exact reduction, where that number is available, and where it is not, it is clearly stated that the discount depends on multiple factors. We really wish more companies would present their discounts in this manner. It helps reviewers and potential customers determine what they are getting from an insurance company.

In case a discount varies based on a state, you can always call the Geico customer service number and see what kind of discount is available at your location. The discounts available are as follows:

Air Bag Discount – A discount of up to 25% is available if the insured vehicle is equipped with driver-side airbags, and an astonishing 40% is offered for full-front seat airbags. These discounts are for medical payments or personal injury coverages.

Anti-Lock Brakes – If your car is equipped with a factory-installed anti-lock braking system, you can get 5% off the collision part of your premium.

Anti-Theft System – If an insured vehicle is equipped with a built-in anti-theft device, up to a 25% discount is available on comprehensive coverage.

Daytime Running Lights – If your vehicle is equipped with daytime running lights, you can save 1% off your premium. This discount may be small, but Geico insurance reviews remind you that every tiny bit adds up.

Five-Year Accident-Free Good Driver – If you haven’t had an accident or traffic violation for five years, you can get up to 26% off on most on the coverages.

Seat Belt Use – If you and your passengers always wear seatbelts, you can get up to 15% off personal injury protection and medical payments. This is a unique discount, and we aren’t exactly sure how Geico keeps track of this.

Defensive Driving – If you have completed an approved defensive driving course, you may qualify for a discount. But as the other Geico reviews will mention, you’ll need to check to see if it’s discounted in your state.

Driver’s Education – If a young driver completes a certified driver’s education course, a discount is available on most coverages.

Good Student – Full-time students that have a good academic record can get up to 15% on certain coverages. The discount varies by state; however, in most cases, students aged 16 to 24, with an average GPA of 3.0 or higher, qualify for the discount.

Emergency Deployment – This discount is for US military personnel only. If you are part of an emergency deployment to an imminent danger zone, you could also be eligible for an auto insurance discount of up to 25%—a nice option to find in the various Geico insurance reviews.

Eagle Discount – If you’re a retired or active federal employee, you can get up to an 8% discount on your car insurance premium.

Membership And Employee Discounts – If you belong to a certain group, you can get a discount on your premium. There are over 500 such groups, and you can check the list on Geico’s website.

Military Discount – Members of the US army, either on active duty or retired/reserves can get up to 15% off on their car insurance premium.

Multi-Vehicle Discount – Insuring multiple vehicles with Geico can get you up to a 25% discount on most of the coverages.

Multi-Policy Discount – If you are bundling multiple policies with Geico, such as auto and homeowners, you can get an additional discount.

About Insurance Rates

A Geico auto insurance rate comparison shows that the company really lives up to their advertisements by offering the second-lowest rates in our comprehensive analysis. On top of that, Geico has many discounts that can reduce the premium even further. You may want to check out Progressive insurance too if you’re looking for the best prices possible; however, you can’t go wrong with Geico if you’re on a tight budget.

Geico Car Insurance Monthly premiums compared with the competition

We acquired a Geico insurance quote for a 21-year-old, 40-year-old, and 70-year-old driver, and we found that Geico was $192 cheaper on average per month for the first category, $76 for the second category, and $64 for the third category. This is a significant difference, meaning you can save a lot by choosing Geico. Other reviews found that the company was expensive for drivers with previous violations, meaning you should also consider Progressive insurance, because of their competitive rates, even for riskier customers.

It is also important to know that Geico does not underwrite their own homeowners’ policies, in case you are planning to bundle it with your auto insurance. The Geico home insurance reviews we checked considered this as a potential disadvantage since the services and available options really depend on the underwriter. However, most of them offer solid experience overall.

Geico Auto Insurance Compared with Top Competitors

Geico vs. Allstate

Geico is a significantly cheaper option than Allstate for all three categories that were included in our tests. It also scores better in J.D. Powers’ 2018 insurance shopping study, while companies are neck and neck in a claims satisfaction study. Geico reviews show that they have more discounts to offer, while the number of optional coverages is similar. One thing that Allstate offers is guaranteed claims satisfaction, meaning you will get a refund if you are not pleased with the way your claim was processed, which is a great feature. However, overall metrics indicate Geico is a better option for an average customer, mainly because of the better prices and many discounts offered.

Geico vs. State Farm

Geico auto insurance reviews note that State Farm is among the most expensive companies and it is especially noticeable when its prices are compared to Geico’s, which offers significantly lower premiums for all the categories we tested. When it comes to customer service, both companies scored fairly average, getting 3 stars out of 5 in claims. The advantages of State Farm may be its willingness to take risky drivers and its bigger network of agents. However, we would lean towards Geico in most cases, because of the various discounts, excellent online tools, and great prices that the company offers.

Geico vs. Travelers Insurance

Given the fact that Geico insurance company reviews show them offering some of the best prices on the market, it comes as no surprise that they beat Travelers in this category.  When it comes to the discounts that can reduce the premium significantly, both companies offer great options. They also share the same score in the customer service department, scoring 3 stars out of 5 in J.D. Power’s claims handling satisfaction and shopping study.

Additionally, both companies have great online tools, although Geico has a slight edge in this department. Travelers offers discounts for electric/hybrid car owners and excellent options for new car owners, and it has a bigger network of local agents. Nevertheless, Geico seems like a better choice for all other categories, mainly due to their very competitive prices.

The Best Alternatives

There are solid alternatives to Geico auto insurance on the market, depending on your priorities. If top-notch customer service is what you’re looking for, Amica Mutual, Erie, and Auto Owners insurance should be near the top of your shortlist. If you are looking for even better prices or if you are a driver with a history of previous violations, Progressive might be the company for you. If you are looking for several coverage options, including gap coverage, you should consider Nationwide.

It should be kept in mind that the offer you will receive varies on your location and your particular profile. Thus, before making a final decision, it is always wise to get from 3 to 5 quotes from different companies and see which one fits you best.

Other Expert’s Thoughts

Geico insurance reviews rate the company as average or a little above average. Nerdwallet gives Geico 4 out of 5 stars, ranking it as 13th out of 23 of the best car insurance companies. ValuePenguin gives the company 4 out of 5 stars as well, citing competitive prices and great online tools as advantages, while noting a small number of local agents and higher rates for drivers with a history of violations as disadvantages.

J.D. Power, the industry expert on customer satisfaction, gives Geico 3 stars out of 5 in claims satisfaction study and insurance shopping study, ranking the company a bit below average in the first category and a little above average in the second.

Our overall impression is that Geico insurance reviews praise the company for its prices and great online tools, while noting that Geico is average in most other areas.

Frequently Asked Questions

1. Is Geico good auto insurance?

The answer to this question depends on your priorities. If you are looking for excellent prices and top-notch online tools, Geico should be near the top of your shortlist. On the other hand, if you are looking for the best customer service, you may want to check other companies (Amica and Erie are solid options according to the best auto insurance reviews). Furthermore, for drivers with a record of previous violations, Geico is not the best choice because of the high prices. Progressive offers good rates for such drivers.

2. What is Geico insurance’s A. M. Best rating?

Geico’s A. M. Best rating is “A++” or Superior, which is the best rating possible. The company is a subsidiary of Berkshire Hathaway, which is one of the most financially stable companies in the US. There should be no worries that Geico is financially capable of paying customers’ claims.

3. How do you receive Geico discounts?

Geico auto insurance offers many discounts that can reduce their already competitive premium rates significantly. Discount categories are vehicle equipment discounts, discounts for driving history and habits, driver’s education discounts, driver affiliation discounts, and customer loyalty discounts. Check the “Discounts” section of this review for more details. You can also call Geico’s customer service number, which is (800) 861-8380, for more details.

4. Progressive or Geico, which is better?

When it comes to price, reviews on Progressive insurance show it being slightly cheaper; however, these two companies both offer some of the most competitive rates on the market. Geico has more discounts and better online tools while Progressive offers some interesting optional coverages, like gap coverage, and it is better for risky drivers. This means that both companies are worth considering if you’re looking for the best rates. Your particular preferences may have to be the deciding factor when choosing between the two, but checking out a few more Progressive and Geico insurance reviews won’t hurt.

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