Are you shopping for car insurance? If yes, then it’s highly likely you will come across GEICO car insurance. So, is GEICO a reliable car insurance company?
In this GEICO car insurance review, we will take a closer look at their policy options, the pricing, the discounts available, their customer service, how they compare with other insurance companies and more, to help you decide whether they are the right auto insurance company for you.
GEICO car insurance provides coverage for property damage liability, bodily injury liability, personal injury protection, medical payments coverage, uninsured motorist coverage, collision coverage and comprehensive coverage. They also offer optional add-on coverages such as emergency roadside assistance service, rental reimbursement, and medical breakdown insurance, among others.
We strive to provide unbiased, comprehensive and well-researched reviews, to help you make the right auto insurance decision for your needs. With that said, here is everything that you need to know about GEICO car insurance.
About GEICO Car Insurance
Headquartered in Maryland, GEICO or Government Employees Insurance Company is the 2nd largest insurance carrier in the U.S. They have insured more than 28 million vehicles, spread across over 17 million car policies.
As the name suggests, GEICO was initially launched to cater to government employees. They only used to provide insurance coverage for federal government staff and their immediate families.
But since then, they have expanded their operations, and they now offer insurance products for everyone. The company is now available in all 50 states, plus the District of Columbia.
What Auto Insurance Coverage Does GEICO Offer?
GEICO’s car insurance coverage is quite similar to what you will find elsewhere. However, the policies available and the coverage options will vary from state to state. Their car insurance coverage includes:
If you are involved in an auto accident and you are held liable, then you will have to pay for property damage as well as injuries suffered by the other party. And this is where GEICO’s auto insurance liability coverage comes in.
Liability coverage is divided into two parts:
- Property damage liability
- Bodily injury liability
As the name suggests, property damage coverage will help to repair any damage that you cause to the other person’s vehicle.
It will also help to repair or replace another person’s property such as a light pole, fence or yard damaged during the accident. However, it will not cover damage to the policyholder’s vehicle.
Bodily injury liability coverage, on the other hand, will help to cater for injuries that the other party sustained during the accident. It provides coverage for medical bills, prescriptions and treatments, lost wages as well as pain and suffering.
So, do you need GEICO’s liability insurance coverage? Well, all 50 states, including Washington D.C require every driver to have property damage liability. Bodily injury liability insurance is also required in all 50 states, apart from Florida.
The answer is yes. You will need liability insurance if you want to stay on the safe side of the law. However, the minimum amount required for coverage will vary from one state to the other.
As noted above, property damage liability coverage will not pay for your vehicle’s damage, if you are involved in an accident. And as you probably know, vehicle repairs can be an expensive undertaking.
Fortunately, GEICO’s collision coverage will help to take care of that. It will pay for the cost of repairing your vehicle, when you hit another vehicle or when another vehicle hits your car.
Therefore, collision coverage will take care of the repair costs, whether you are at fault or not.
However, it’s important to note that you don’t choose a limit for collision coverage. Instead, GEICO will compensate you based on your vehicle’s actual cash value. Also, you will have to pay your selected deductible before you can receive the collision coverage payout.
While collision coverage will pay for damages to your vehicle, it doesn’t cover everything. Some of the damages not covered under GEICO’s collision coverage include vandalism, theft, floods, fire as well as hitting an animal.
Why Buy GEICO’s Collision Coverage?
Collision coverage will help you to pay for repairs, meaning you will not be stuck paying the expenses entirely on your own. Furthermore, it may allow the repairs to commence, even when the claim is still under investigation.
Also, if your vehicle is leased or financed, then you may be required to purchase collision coverage or comprehensive coverage, depending on the vehicle’s value.
Medical Payments Coverage
Medical payments coverage will help to pay for medical bills arising from injuries sustained from an auto accident.
This coverage is required in some states and optional in others. So, whether to add it to your GEICO auto policy or not will depend on where you live.
It covers the policyholder and family members living in that household. Medical payments coverage may sometimes extend to the policyholder’s passengers.
It will pay for medical bills such as doctor visits, X-rays, ER visits and chiropractic services.
It may also provide coverage if the policyholder is injured while traveling in another person’s vehicle or struck as a pedestrian. Also, it may pay for funeral expenses if a covered individual dies during the auto accident.
GEICO’s medical payments coverage will not pay for lost wages, medical treatments that are not related to the accident or medical expenses for other parties involved in the accident.
As much as medical payments coverage may be optional in some states, it will come in handy for people who don’t have health insurance as well as those who are not in a position to pay a huge medical bill by themselves.
GEICO’s medical payments coverage is available in specific dollar amounts like 1,000, $2,500, and $5,000. The amount of coverage that you choose is the maximum amount you will receive at the time of the accident.
Personal Injury Protection
Also known as no-fault insurance, personal injury protection (PIP) will help to cover expenses resulting from a car accident, regardless of who is at fault.
PIP coverage requirements vary from state to state, in terms of the required limits as well as who is covered. But in most states, it will cover you and the relatives living in your home.
It may also extend to your passengers, depending on the policy you’ve purchased. Some of the expenses covered by personal injury protection coverage include:
- Medical bills
- Nursing care
- Lost wages
- Medical supplies
- Replacement services
While PIP and medical payments coverage may appear similar, they have some slight differences. So, how do the two differ?
Well, both PIP and medical payments coverage will pay for accident-related injuries, for you and your relatives living in your home.
However, medical payments coverage will only take care of the medical expenses for the accident-related injury.
Personal injury protection, on the other hand, will provide coverage beyond medical treatment. Hence, it will provide coverage for lost wages, as well as replacement services such as a housekeeper to take care of duties you can’t perform due to the injuries.
If you live in one of the states where this coverage is required, then you will have to purchase it as part of your GEICO car insurance policy. Even if it may not be required, this coverage comes with numerous benefits that you may not get from your conventional health insurance policy.
Uninsured Motorist Coverage
Uninsured motorist coverage is an optional coverage that you can add to your GEICO car insurance policy. If you are injured during an auto accident by an uninsured driver, then this coverage will help to pay for your expenses.
GEICO offers two types of uninsured motorist coverage:
- Uninsured motorist bodily injury coverage
- Uninsured motorist property damage coverage
Uninsured motorist bodily injury coverage will provide compensation for medical expenses, loss of income, funeral expenses as well as pain and suffering.
Uninsured motorist property damage coverage will provide coverage for repairing your car if you are involved in an auto accident with an uninsured or underinsured driver.
If you don’t have uninsured motorist coverage, then you may have to pay for the above expenses by yourself or sue the at-fault driver in court.
As highlighted earlier, collision coverage doesn’t cover losses like vandalism, theft, fire, hitting an animal and hail.
So, if you want additional coverage for such losses, then you will have to add comprehensive coverage to your GEICO auto policy.
For instance, you may be traveling at night and you hit a deer. Consequently, your vehicle’s bumper may be damaged during the incident.
Comprehensive coverage will compensate you and cover the costs of repairing the damaged bumper.
In short, comprehensive coverage will cover your vehicle’s damages that collision coverage will not cover. However, it doesn’t provide coverage for normal wear and tear on your vehicle.
GEICO also offers optional auto insurance coverage, for policyholders looking for additional coverage. Some of their additional auto insurance coverages include:
Emergency Roadside Service and Assistance
Whether your car’s battery needs a jump-start or you have a flat-tire, GEICO’s emergency roadside service and assistance will get you the help you need. This service provides coverage for:
- Battery jump starts
- Towing your vehicle to the nearest repair facility
- Changing a tire if you have a functioning spare one
- Unlocking doors when you lock your car keys inside the vehicle
- Fuel delivery services
All the roadside assistance services are available via the GEICO mobile app. And you don’t have to pay out-of-pocket, as long as you have added this coverage to your GEICO auto insurance policy.
Rental reimbursement is an optional coverage that GEICO offers to its policyholders, designed to help pay for rental car costs while the policyholder’s car is being repaired.
With the rental reimbursement coverage, you can keep the rental car until your coverage limit runs out or as soon as your vehicle is back on the road, whichever comes first.
In case your vehicle is totaled, you can only keep the rental vehicle for a limited authorized rental time.
Rental reimbursement coverage is subject to daily limits as well as per claim limits. For instance, if you are paying a rental reimbursement coverage of $30 per day and $800 per claim, then GEICO will only pay up to $30 and $800 per claim for the rental vehicle.
As you may expect, GEICO’s rental reimbursement coverage will not pay for gas, or security deposit. Also, it will not cover additional insurance the rental car company may ask you to purchase.
Furthermore, if your daily rate is more than your policy’s daily limit, then you will have to cover the difference.
However, if you already have collision coverage and comprehensive coverage on your GEICO car insurance policy, then it will just be transferred to your rental car as your vehicle is being repaired.
Mechanical Breakdown Insurance
Mechanical breakdown insurance or MBI will pay coverage for repairs in vehicles that are less than 15 months old and have traveled fewer than 15,000 miles.
It covers repairs for the vehicle’s mechanical components like the transmission, engine or air conditioner. You should not that MBI will not cover diagnostic fees.
After purchasing this optional coverage, you can continue renewing it until you clock 100,000 miles or for up 7 years from the date of the purchase, whichever comes first.
Mechanical breakdown insurance has a $250-deductible requirement, which must be paid before you can receive the payout.
GEICO also offers car insurance for ridesharing drivers like Lyft and Uber. When you purchase this policy, it will replace your personal car insurance policy. With this insurance, you will be covered on and off the job.
How Much Does GEICO Car Insurance Cost?
The average cost of auto insurance nationwide is approximately $1,500, which translates to around $125 per month or $750 if you opt for a 6-month policy.
A standard GEICO car insurance policy will cost you approximately $1200 per year, or $100 per month, which is a bit on the lower side. As much as GEICO’s car insurance may not be the cheapest on the market, it appears affordable for most drivers.
What Factors Determine GEICO car insurance costs?
While the average cost of GEICO car insurance is approximately $1,200 per month, the actual cost will vary from one driver to the next, depending on individual rating factors.
When calculating the cost of your car insurance policy, GEICO applies various individual factors like marital status, age, home ownership, type of car ownership, the vehicle’s value and time spent driving.
Let’s take a closer look at how each of these factors determines your GEICO auto insurance rate.
You may be probably asking yourself what your marital status has to do with your auto insurance costs. Well, married people are considered safer drivers compared to their single counterparts.
Therefore, if you are single, there is a high chance your GEICO car insurance premiums will be more expensive compared to someone married.
But if you live in Massachusetts, Montana and Hawaii, GEICO will not use your marital status to determine your insurance rate, since it’s outlawed.
Age is a significant rating when it comes to the cost of auto insurance. For instance, when you visit GEICO’s online car insurance coverage calculator, you will be asked to indicate your age category.
And in this instance, you will indicate whether you are younger or older than 25. So, how does age affect your insurance cost?
Young drivers are considered less experienced and reckless, meaning they are likely to cause an accident. And this translates to more risk for the insurer, which translates to higher premiums.
In general, your GEICO auto insurance rate will begin to drop once you hit the age of 25. But you must have a clean driving record to back it up.
GEICO’s car insurance coverage calculator will also ask you to indicate whether you own a home or not.
People who own a home tend to pay for lower auto insurance premiums, compared to renters. Also, you may qualify for some auto insurance discounts simply because you own a home.
GEICO categorizes vehicle ownership in 3 main ways. These are owned, leased and financed. The premiums will then vary depending on the status of car ownership.
For instance, if your car is financed, then your lender may require you to have both collision coverage and comprehensive coverage, on top of the minimum state requirements for auto insurance.
On the other hand, if you have purchased the vehicle with your own money, then you can just pay for your state’s minimum coverage. Consequently, the cost of your GEICO car insurance premiums may be lower than someone whose car is financed.
The amount of car insurance coverage that you purchase from GEICO will also determine your premiums.
Generally, the more coverage that you choose, the higher the cost of your premiums.
As noted earlier, purchasing the standard GEICO car insurance coverage like liability coverage, collision coverage, medical payments coverage, personal injury protection and uninsured motorist coverage will cost you approximately $1000 annually.
But if you opt for the full coverage policy, then you should expect to pay higher premiums.
GEICO will also consider the car you drive when determining your auto insurance rates. More expensive cars will cost more to insure since their repair or replacement costs are equally high.
Furthermore, some car types and models tend to be more prone to damage than others do. Also, some will need costlier repairs when damaged, since their parts may be hard to find.
In addition, some car makes and models tend to attract car thieves more than others. Therefore, the cost of insuring such cars will be more expensive, compared to those less popular with car thieves.
Drivers who clock higher mileages are highly likely to be involved in an auto accident compared to those who drive occasionally.
GEICO’s car insurance calculator will consider the time spent driving when calculating your coverage.
Does GEICO Offer Discounts on Car Insurance?
GEICO offers several discounts on car insurance, designed to help policyholders save costs on premiums. Combined, these discounts can help you to save up to 40% on your insurance premiums.
Their auto insurance discounts are divided into 5 main categories. These are vehicle equipment discounts, driving history discounts, driver’s education discounts, driver affiliation discounts and customer loyalty discounts.
Vehicle Equipment Discounts
If your vehicle is equipped with features or systems that can reduce the need of having to file a claim, then you may qualify for vehicle equipment discounts. The discounts offered in this category include:
Vehicles with driver-side discounts can qualify for a 25% discount. And if your vehicle has full-frontal airbags, then you can save up to 40% on your personal injury insurance and medical payments insurance.
Anti-Lock Brakes Discount
If your vehicle has factory-installed anti-lock braking mechanisms, then you can qualify for a 5% discount on your collision insurance coverage.
Daytime Running Lights Discount
GEICO offers a 1% auto insurance discount, for cars equipped with daytime running lights. Daytime running lights make it easier for oncoming drivers to notice your vehicle, thus helping to minimize head-on collisions.
Anti-Theft System Discount
Vehicles equipped with inbuilt anti-theft system systems can qualify for a 25% discount on their comprehensive insurance coverage. An anti-theft system prevents someone from starting the engine if they don’t have a key.
Driving Habits Discounts
GEICO offers a couple of discounts for certain drivers, who are considered lower risk. Here are some of the discounts offered in this category:
Seat Belt Use Discount
If you and your passengers always wear seat belts when you are driving, then you may qualify for a 15% discount on your personal injury protection coverage and medical payments coverage.
5-Year Accident-Free Discount
Auto insurance policyholders, who have been accident-free for at least 5 years, can qualify for a 22% discount on several auto policies.
Drivers Education Discounts
If you invest in safety training, defensive driving or similar educational courses, then you can enjoy savings on your GEICO auto insurance policy. The discounts offered in this category include:
Defensive Driving Course Discount
Drivers who complete a defensive driving course may qualify for auto insurance discounts on most policies.
Driver’s Education Discount
GEICO may also offer you discounts on several coverages, if there is a young driver in your family, who has completed a driver’s education course.
Driver Affiliation Discounts
Being an active member of certain qualifying groups can also earn you a discount on your GEICO car insurance policy. Here are some of the eligible groups and the discounts offered:
If you are an active-duty serviceman, a veteran or a member of the National Guard or Reserves, then you can earn a discount of up to 15% on some car insurance coverages.
GEICO also offers an emergency deployment discount of 25%, for members of the military who have been deployed in danger zones.
Federal Employee Discount
Federal employees are eligible for a discount of up to 8% on their auto insurance premiums, offered via the company’s Eagle discount program.
The federal employee discount is available both to current federal employees as well as to those who have retired. The eligibility criteria vary from state to state.
Partnered Organizations Discount
If you are a member of one of the over 500 partnered organizations, then you can be eligible for some auto insurance discounts.
The groups include professional organizations, sororities, fraternities as well as alumni associations, among others. The discounts offered vary from state by state as well as the group you are a member of.
Customer Loyalty Discounts
Similar to other auto insurance companies, GEICO offers several discounts to its loyal customers. Some of the customer loyalty discounts that GEICO offers include multi-vehicle discounts and multi-policy discounts.
If you live in Illinois, Connecticut, Wisconsin, Oregon and Pennsylvania, then you can qualify for the DriveEasy discount program.
In this program, you will have to download the company’s DriveEasy mobile app, which will then track, measure and log your driving habits like speeding, using a phone while on the road or hard-braking.
Where is GEICO Car Insurance Available?
GEICO is currently available in all 50 states as well as the District of Columbia. Coverage requirements, limits, payment options and discounts vary by state.
Rideshare insurance is not available in states like Georgia, Alaska, Kentucky, Mississippi, Nevada, New York, New Jersey, Texas, Utah and North Carolina.
Where Does GEICO Rank for Car Insurance?
Rating agencies like AM Best, the National Association of Insurance Commissioners (NAIC) and J.D Power undertake regular consumer surveys, to determine how various insurance companies are performing. So, how does GEICO perform?
Customer Satisfaction Rating
The industry average for customer satisfaction rating is around 835 out of 1000. According to J.D Power, GEICO earns a customer satisfaction rating of 843 out of 1000, which is slightly higher than average. In short, it performs better than most of its competitors in this area.
According to AM Best, GEICO scores an A++, meaning it’s in a strong financial position to meet its ongoing financial obligations. Based on this rating, you can feel confident that they are in a position to pay your covered claims, as long as they are valid.
The National Association of Insurance Commissioners (NAIC) keeps track of all complaints lodged against insurance companies.
For customer complaints, the average score is. Companies that earn a score of more than 1 means they receive more customer complaints than average.
Based on the 2019 NAIC complaint index report, GEICO earned a score of 1.14 for the customer complaint index, which is within the national average.
Customer Service and Shopping Experience
GEICO’s customer support team is available 24/7 via call. Also, you can access your policy information or file a complaint through the GEICO mobile app or via your online account.
Also, you can connect your GEICO account to Amazon Alexa, Siri as well as Google Home and then ask any question that you may have about your policy.
According to J.D. Power 2020 U.S. Insurance Digital Experience Study, GEICO earned first place for customer service and 21 out of 22 for digital shopping experience.
Filing a Claim with GEICO
GEICO offers several channels, which you can use to file a claim. You can either call the company’s customer service line, follow the prompts and file your claim or do so via the GEICO app.
When filing a claim, you will be required to provide details such as the state where the incident happened, the time and date of the incident, as well as a description of what happened.
You may also be required to include a police report where applicable, the information of the other parties involved or any other information needed to support the claim.
Once you finish filing the claim report, GEICO will send you a confirmation email. They will then call you to discuss the steps that will follow and schedule a date when the auto damage adjuster will inspect your vehicle.
In case your vehicle is safe to drive, you will arrange with them the most convenient time to take it to the repair shop. You can either use your preferred repair shop or opt for one of the company’s Auto Repair Express facilities.
After the investigation is complete, they will then send you a check so that you can repair the damages, minus the deductible.
According to the information posted on their website, the claim can be settled in as little as 48 hours. However, the exact duration for settling a claim will depend on the type of claim.
- High customer satisfaction rankings
- Easy and intuitive mobile accessibility
- Plenty of auto insurance discounts
- Coverage for ridesharing drivers
- Few local agents
- Limited optional coverages
- Doesn’t offer gap insurance
GEICO is an affordable and reliable choice for most people who are shopping for auto insurance. You can file a claim or purchase a policy online, over the phone or even through the app.
Furthermore, the company offers numerous discounts, which can help to save money on auto insurance. It’s also one of the few auto insurance companies offering ridesharing insurance, making it a great option for ride-sharing drivers.
On the other hand, if you are looking for an auto insurance company that offers gap insurance and numerous optional coverages, then GEICO may not for you.
About THE AUTHOR
I've spent many years selling cars, working with auto detailers, mechanics, dealership service teams, quoting and researching car insurance, modding my own cars, and much more.Read More About Charles Redding