GEICO Auto Insurance Review

GEICO consistently offers affordable auto insurance rates, but customer satisfaction ratings indicate there may be a tradeoff for the quality of service you receive.

GEICO offers a full range of auto insurance coverages and its rates are generally among the lowest in the industry, in part due to its numerous discounts. If price is your primary consideration in choosing an auto insurance provider, GEICO is definitely one to keep on your radar.

However, customer satisfaction surveys have revealed GEICO’s customer service to be decidedly average. We all hope we never have to file a claim, but when we do, we want to know our insurer is going to lessen the headache, not make it worse. If that’s more important to you than a low price, I’d suggest going with a different company, like State Farm or Allstate.

The Specs

Price	Varies by location, vehicle and other factors
Best For	Price-focused consumers
Not For	People who place a high value on reputation and customer service
Discounts	Air bags Anti-lock braking system Anti-theft system Daytime running lights Five-year accident-free good driver Seat belt use Defensive driving course Driver’s education course Good student Military Membership and employee discounts Federal employee discount Multi-car Multi-policy
States Served	50
In Business Since	1936
Better Business Bureau Rating	A+
A.M. Best Rating	A++
S&P Rating	AA+
Moody’s Rating	Aa1
Standout Features	Accident forgiveness 24/7 customer support Rental car reimbursement Mechanical breakdown insurance Coverage for Lyft and Uber drivers

The Claim

GEICO’s memorable slogan — “15 minutes could save you 15 percent or more on car insurance” — has been attracting bargain hunters for over a decade. The company promises affordable rates and big discounts, in addition to solid coverage, fast claims service, and 24/7 customer support.

Is it True?

Maybe. Auto insurers consider many factors when calculating rates — your driving record, vehicle type, address, annual mileage, etc. — so it’s impossible to say one company is the most affordable for all drivers. I got quotes myself from several major insurers and found GEICO’s rates were affordable, but not the cheapest:

Annual Premium Cost	$25K/$50K/$10K (state minimum coverage)	$250K/$500K/$100K
Progressive	$230	$284
GEICO	$240	$302
State Farm	$274	$444
Allstate	$386	$474

You may get different results than I did. The only way to know which company offers you the best price is to set aside some time to compare quotes.

A recent survey by Consumer Reports suggests that GEICO’s prices are consistently affordable. When faced with a choice between GEICO and State Farm, over three-fifths of consumers focused only on price chose GEICO. But interestingly enough, when price was considered in conjunction with other factors, such as company reputation and customer service, a majority of consumers chose State Farm.

J.D. Power’s 2016 auto insurance customer satisfaction survey also gives credence to the idea that the tradeoff for a low price is a lower quality of customer service. In nine out of 11 regions, GEICO was rated average or below. Whether that is a concern for you depends on your priorities, but it’s something to be aware of when comparing rates.

Our Deep Dive

• Offers all major coverages: GEICO offers bodily injury and property damage liability coverage ranging from your state minimums to $250,000/$500,000/$100,000. These coverages protect you if you’re found liable for damage to people or property in an accident. Some states also require uninsured or underinsured motorist coverage, which pays for the damages if you’re hit by a driver who has too little or no insurance. Collision and comprehensive coverage are also available to help repair your vehicle following an accident. Though not required by law, many lenders will require these coverages if you have a loan on your vehicle.
• Coverage for Lyft and Uber drivers: As of 2015, GEICO offers coverage to Uber and Lyft drivers. Though this protection is becoming more common, some insurance companies still refuse to cover drivers who provide ride-sharing services, and have even canceled their existing policies. If you work for a ride-sharing service, GEICO is worth considering.
• Plenty of ways to save: GEICO has an impressive selection of discounts to help you save on your premiums. Insuring multiple vehicles or bundling your home and auto insurance could lower your premium by up to 25 percent. Being five years accident-free and wearing your seatbelt can also translate into savings. Teen drivers are eligible for good student and driver’s education discounts. And if you’re a member of the U.S. military or one of GEICO’s member organizations, you could save even more.
• Financially strong: Moody’s, S&P and A.M. Best have all given GEICO high financial strength ratings. This is an important indicator of how likely it is that the insurer will be able to pay out claims when the time comes. GEICO customers can rest easy knowing that the company will be there when they need them, whether that’s tomorrow or months down the road.
• Simple quote process: Getting an auto insurance quote from GEICO takes less than five minutes. Answer a few basic questions about yourself, your vehicle and your driving record and you will be presented with several policy options that you can customize to your liking. You should know most of the information required to complete the quote, but if you can’t recall the details of any recent accidents, you may want to look that information up ahead of time. Quotes are saved in GEICO’s system, so you can return to them at a later date without having to reenter all your information.
• Filing a claim is easy: You can file a claim online, over the phone or through one of GEICO’s mobile apps. According to GEICO’s claims center, the whole process takes about five minutes. Submit the details of your accident and a representative will look into it. If you’re eligible for a repair, you can schedule that right away. You can track the entire claims process from the mobile apps or your online account.
• Accident Forgiveness: Accident Forgiveness is available as an optional upgrade. If you choose to add it, you don’t have to worry about rate increases following your first at-fault accident.
• Manage your account from anywhere: GEICO has mobile apps available for Apple and Android devices. The apps give you access to digital ID cards, roadside assistance, and details about your policy. You can get a quote, file a claim, and pay your bill just as you could from your online account. The mobile apps are also hooked up to GEICO’s live chat, so you can speak to a representative at any time.
• Medical payments coverage: Though most states don’t require this type of insurance, GEICO gives consumers the option to add up to $10,000 worth of medical payments coverage. This covers any medical, dental, or funeral expenses related to a car accident, regardless of who was at fault.
• Mechanical breakdown insurance: Mechanical breakdown insurance pays for any repairs your car needs that aren’t related to an accident. It’s only available for new or leased cars under 15 months old with less than 15,000 miles. You can renew it for up to seven years or 100,000 miles, whichever comes first. All repairs under mechanical breakdown insurance have a $250 deductible.
• Rental car reimbursement: This is an optional protection. If your car is in the shop for a repair, this coverage will pay for the cost of obtaining a rental vehicle.
• Roadside assistance: This is another optional coverage. If you run out of gas or lock yourself out of your car, GEICO will send someone to assist you at no extra cost

Cost Rundown

Auto insurance companies look at a variety of factors when calculating auto insurance rates. Your age, your driving history, your vehicle make and model, and where you live are a few of the biggest factors. Every company weighs these factors slightly differently, so the only way to find out what it’s going to cost you is to get a quote.

For me, going with GEICO would cost $240 a year for state minimum coverage. State Farm would charge me an extra $34 for the same coverage, but its reputation for providing better customer service could make the extra money worth it. That’s something you also have to weigh when comparing insurers.

Cheaper (or Free!) Alternatives

All 50 states require auto insurance, so there’s no way to skip it. If you’re caught driving without insurance, you can face some hefty fines, so it’s not worth the risk. Instead, take some time to compare quotes and see who offers you the best coverage for the lowest price.

You can also take simple steps to minimize your risk to insurers. Consider these:

• Drive less. Less time spent on the road means less potential for accidents.
• Notify your insurer about major life changes. Getting married or finishing college can have a significant impact on your auto insurance premiums.
• Improve your credit score. A higher credit score means a lower insurance premium with every auto insurer.
• Complete a defensive driving course. Several insurers, including GEICO, give discounts to drivers who have completed a defensive driving course within the last three years.
• Choose your next vehicle carefully. You want a vehicle with high safety ratings that won’t attract thieves.

The Competition

• State Farm: In my quote comparison, State Farm offered reasonable rates for state minimum coverage, though that rate went up significantly when I raised my policy limits. State Farm offers all major types of auto insurance coverages, and it scored well in J.D. Power’s customer satisfaction survey. It also has a decent selection of discounts, including its Drive Safe & Save program, which gives a discount to those who agree to have their driving monitored by State Farm.

• Progressive: Progressive is another auto insurer worth considering if a low price is your top priority. It doesn’t offer as many discounts as some other insurers, but its rates are consistently among the lowest in the industry. It provides all major types of coverage, in addition to some protections you won’t find with most insurers, such as pet injury and custom parts coverage.

• Allstate: Allstate has one of the largest selections of auto insurance discounts in the industry, yet it still turned out to be my most expensive option. Again, this may not be the case for you, but you’ll have to get a quote to find out. Also, Allstate received even lower customer satisfaction scores than GEICO in J.D. Power’s survey, so unless it offers you a great deal on your rates, one of the other companies on this list is probably a better option.

What Others Are Saying

• A.M. Best reaffirmed GEICO’s AA+ rating in July 2016. It listed several reasons for this rating: “The rating affirmations reflect GEICO’s strong risk-adjusted capitalization, continued operating profitability, brand name recognition and preeminent national market position in the personal automobile segment.”
• CNN reports that GEICO was under fire in 2015 for allegedly discriminating against low-income drivers. The Consumer Federation of California accused the company of failing to offer state minimum coverage levels to these drivers, despite this option being required by state law.
• Law 360 highlights another controversy — this time, repeatedly underpaying for windshield replacement. An auto glass shop sued GEICO after this happened several times. It claims GEICO “routinely fails and refuses to pay the full amount of windshield repair and replacement charges submitted for insurance reimbursement.”
• Business Insider discusses a statement from Warren Buffett, owner of GEICO’s parent company Berkshire Hathaway, expressing certainty that GEICO would soon become the largest auto insurer in the nation. He says: “With the price advantage GEICO’s low costs allow, it’s not surprising that several years ago the company seized the number two spot in auto insurance from Allstate. GEICO is also gaining ground on State Farm, though it is still far ahead of us in volume.”

The Bottom Line

You should always get multiple auto insurance quotes and compare rates and coverages before making a purchase. GEICO is a good choice if a low price is your top priority, but consumers that place a high value on customer service may want to choose a company with a better reputation, like State Farm.