UPDATED: Mar 19, 2020
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|Current Executives||CEO: Bill Roberts|
|Number of Employees||40,000+|
|HQ Address||5260 Western Avenue
Chevy Chase, MD 20815
|Best For||Low cost insurance|
Low rates. Warren Buffet. And a little thing called the Gecko.
Geico’s brand speaks for itself. It is the second-largest private passenger auto insurance company in the United States, has some of the lowest rates, and has amassed awards for its advertising.
In fact, its YouTube channel has over 1 million subscribers.
But how much do you know about it really?
Here at USInsuranceAgents.com, we know that choosing an insurance company is important to you.
The right company has the rates that match your income level, the right coverages to protect you, and customer service to help out with your claims needs. But you may have found that researching Geico has been confusing.
There are technical insurance terms like GAP and PIP. There are rates by a thousand different ways. And finding out how to cancel a policy can be like pulling nails from the company.
That’s why we’ve put together this guide, to drill deep into a company you might know solely from its commercials or have researched but still have questions.
Here, you’ll find its financial ratings, its history, its rates, its coverages, how to file a claim, and how to get a quote. And much, much more. Of course, there will be plenty of commercials.
Ready to compare rates now? Enter your zip code above for FREE.
Geico’s Rating Agency
Imagine this. You are excited about a company. You like its rates, its coverages, and its customer service has good reviews. You sign up for them. But suddenly a news article comes out.
This company is on the brink of bankruptcy and might not be able to pay out on any potential claims you might have.
It’s a scary thought. We understand. We get it. Fortunately, there’s a solution to all this. It is the rating agencies.
In this section, we have seven companies that issue ratings related to finance, customer satisfaction, and complaints.
By the end, you’ll know exactly what the experts think about Geico and what your fellow customers think of it as well. Let’s start down stretch one.
Just like you have a credit score that shows your trustworthiness when taking out a loan, companies have financial strength rating scores. These are issued by various credit rating agencies, like A.M. Best.
A.M. Best assigns financial strength ratings so that companies and countries around the world know if they can trust a company like Geico to do business with.
It’s also useful for domestic purposes, for both a company’s potential business relationships and its relationships with its customers.
A.M. Best rates Geico as an A++. What does this mean?
An A++ is A.M. Best’s highest possible rating and means that Geico has a “superior ability to meet its ongoing insurance obligations.” This is according to A.M. Best’s methodology.
It also means Geico is extremely unlikely to not fill legitimate claims or other customer-related activities.
Better Business Bureau
Geico gets an A+. However, were customers as happy with Geico?
Customers on BBB’s website give Geico 1.1 stars out of 5 from 317 reviews. Geico has also had 3,100 complaints closed in the past three years, with 1,050 in the past year.
Moody’s is the second credit rating agency we’ll look at. It gives Geico an Aa3.
Aa is the second-highest category in Moody’s ratings. It means Geico’s insurance obligations “are judged to be of high quality and are subject to very low credit risk.”
The ‘3’ means that Geico is in the lowest sub-rating for the Aa rating designation. Some of you might be asking, “What exactly does credit risk mean?”
When assessing credit risk, international rating agencies take into account the amount of debt a company has versus its assets and current revenue. Essentially, if they are at risk of defaulting on their loans.
If that were to happen, it is possible that a company might declare bankruptcy. Or even further, not honor any claims you might submit if you were to have an incident like theft or an accident.
Geico isn’t at any particular risk of that at the moment but some insurance companies are moreso.
Overall, these three companies show Geico’s financial strength, which out of the major car insurance companies is only matched by two others. They are State Farm and USAA.
NAIC Complaint Index
The National Association of Insurance Commissioners (NAIC) is an organization made up of insurance commissioners from all 50 states. It helps regulate insurance industries, including car insurance.
To this end, it puts together statistics that are helpful for consumers. One of these takes all the complaint data from each state department and weighs them against the number of premiums written.
With the complaint index, lower is better. Geico has a .92 out of 600 complaints. This ranks in the middle for all insurance companies.
|Company||Complaint Index||Total Complaints|
State Farm and Progressive, two of Geico’s main competitors, are lower. Allstate, Geico’s other main competitor, is higher.
Geico gets three out of five power circles overall, which is about average.
|Factors in Claim Process||Rating (out of 5)|
|First Notice of Loss||4|
It scores higher on first notice of loss and settlement, each with four power circles, which is above average.
Consumer Affairs is another customer satisfaction rating site. Like BBB, it allows customers to leave ratings and reviews. Geico scores high with 3.9 out of 5 stars from 3,271 reviews.
Some of the positives included an average savings of $500 when signing-up with Geico, an ability to manage policies through mobile devices, and a free and easy quote buying process.
The negatives were that low credit scores can increase premiums in some states and that there are no discounts for hybrids or electric cars.
The Government Employees Insurance Company, informally GEICO, was founded in 1936 by Leo Goodwin Sr. and his wife Lillian Goodwin. Their goal?
To target a less risky population than the general population. That was federal employees.
It did this successfully for many years before branching into the general population market. It had some major initial investors, including one that would change the course of the company. That investor was Warren Buffett.
We know Geico today as a strong financial company. However, that wasn’t always the case.
In the 1970s, Geico was at risk of insolvency. The reason was unchecked expansion into new markets and severe unwriting losses. Fortunately, some companies came to save it.
That, and a reorganization of the company, set the stage for a return to financial health.
In 1996, Warren Buffet and his company bought up the remaining Geico stock. Geico became a wholly-owned subsidiary of Berkshire Hathaway.
That’s the story of Geico, filled with growth, near collapse, and increased expansion.
But you might be asking, “Who is Geico today?” True, accurate information might be tough to find. Parsing through it might give you a headache.
That’s why we’ve put together this section. Here, we’ve got everything from Geico’s market share to what Geico’s employees think about it. Also, its online presence and its position for the future.
Rev that engine. It’s time for stretch two.
Geico Market Share
It’s already been said that Geico is the second-largest car insurance company in the United States. However, by how much?
|Geico Market Share||2015||2016||2017||2018|
|Private Passenger Auto||11.41%||11.89%||12.79%||13.40%|
Geico has been the second-largest car insurance company for a number of years and has been increasing its market share. From 2015 to 2018, its market share jumped by more than 2 percent.
This places it squarely in second, a full 2.5 percent ahead of its nearest competitor in Progressive.
Its total lines have been gaining market share as well. But as we’ll see later in this guide, that is mostly due to its gains in the car insurance market.
Geico’s Position for the Future
To look at Geico’s position for the future, there are a few statistics that will help. First, its financial ratings are superb.
- A.M. Best: A++
- Moody’s: Aa3
- S&P: A++
Its market share has increased 2 percent in the past four years. Further, its premiums have increased by 45 percent for private passenger auto and 46 percent for total lines in that time.
Its loss ratios, which are a ratio between claims filled and premiums written, are in the sweet spot of .6 to .8. This means they are healthily balanced between paying claims and not losing money.
Its assets are much higher than its liabilities and it appears to be mostly scandal-free.
It also has taken advantage of technological innovations like mobile devices, such as when it became the first insurance company to introduce the process of getting a quote through cell phones.
Also, correlated or not to its growth, Geico has established itself as a leading advertising presence in the United States. People know the Gecko, the Caveman, the Camel, and more.
It has entwined itself into the national consciousness of America in that respect.
It appears to have a great future, given its current trends and advertising presence. If it continues to innovate and take advantage of new technological advancements, it may continue its upward trend.
What could fell it? A scandal of some sort or poor financial management.
There is also the looming presence of self-driving cars. For every insurance company, this is an issue, and the first ones to take advantage of this new situation will likely profit much more for decades to come.
Geico’s Online Presence
Geico has an online presence like other major insurance companies. There is the Geico website and the four major social media outlets.
State Farm, the company Geico is gunning for, has more followers on every social media outlet except for YouTube. There, Geico owns a 1.4 million subscriber advantage.
Geico is known for its commercials and spends over $1.5 billion on advertising each year, according to Statista, a top statistics site. That’s the most of any car insurance company.
Geico commercials are actually produced by The Martin Agency in Richmond, Virginia, rather than in-house. They have a funny bent and often involve animals such as the Gecko and the Camel.
Geico’s price is the selling point, with outlandish scenes followed by a, “Or you could save $500 on your car insurance by switching to Geico.”
There is the Gecko:
And the Camel:
Geico in the Community
Geico focuses its community efforts in four areas.
Geico Cares in Action. This is very much a pair-employees-with-causes sort of thing. Partner organizations include Habitat for Humanity, Paws for a Cause, and the Junior Tennis Champions Center.
Children’s National Hospital. Each summer, departments in Geico compete to raise the most money for the Children’s National Hospital in D.C. All told, the departments raised over $320,000 in 2017, which goes providing care and funding research.
Encouraging Green Efforts. Geico works in three ways to encourage green efforts. It has introduced waste-reducing programs in its offices, allowed customers to save paper and energy by going paperless, and continuing its improvements in its offices.
Environmental Safety and Pollution Prevention. Geico requires its auto repair shops to undergo training. This promotes reducing pollution and the safe handling of chemicals, paint, and coolant.
We know that financial ratings and customer satisfaction ratings are important. But we also know that a company’s employees are the best judge of a company’s culture.
And a company that doesn’t treat its employees well, no matter how much money they have, may not be the company you’d want to go with. So who are Geico’s employees and what do they think of it?
The first two tables are from A Great Place to Work and are from 2015, so they’re a little bit dated.
At that time, most of Geico’s employees were fairly new to the company. Fifty-eight percent had tenures of five years or less. Just 6 percent had tenures 20 years or longer.
Most employees agreed that people were treated fairly regardless of sex and that people were given a lot of responsibility.
|Statement||Percentage in Agreement|
|People here are treated fairly regardless of their sex.||86%|
|This is a friendly place to work.||86%|
|People here are given a lot of responsibility.||85%|
|I feel good about the ways we contribute to the community.||85%|
|When you join the company, you are made to feel welcome.||85%|
The next three tables are from current data.
Employees on Indeed gave Geico a 3.5 overall rating out of 5. Employees were high on the pay and benefits but low on the management and work-life balance.
|User Prompt||Rating (out of 5)|
|Pay & Benefits||4.0|
|Job Security & Advancement||3.6|
Employees on Payscale also gave it a 3.5 out of 5. 80 percent of respondents found the job highly stressful.
|Job Satisfaction||3.5 out of five|
Employees on Glassdoor were lower and gave it a 3.2 out of 5. Just 55 percent of employees would recommend the company to a friend.
|Rating||3.2 out of five|
|Recommend to a Friend||55%|
|Approve of CEO||76%|
There were no major awards available for Geico itself. However, its parent company, Berkshire Hathaway, was placed No. 3 on Fortune’s Most Admired Companies list.
Cheap Car Insurance Rates
You may have read other articles. You know, those ones about rates. It may be simple to think, “Hey, I’m a good driver. My rates should be good.”
But now you know that’s not the case.
We know that rates are often a make-or-break when searching for insurance. A company can be great, have all the coverages, have strong financial ratings, but if their rates are high it’s out the door.
But researching rates can be confusing. If you’re doing it by yourself, then all you have are the options in the quotes. We understand. We’ve been there ourselves.
In this section, you’ll have all the rate information you need about Geico. We have rates by state, average rates compared to the top 10 companies, and rates by six different factors.
One of those is the aforementioned driving record. Among the others is the dreaded credit history.
Give it a little gas. We’re heading into stretch three.
Geico Availability and Rates by State
Geico is available in all 50 states. In 41 states, its prices are lower than the average. In nine, it’s higher.
These numbers come from our partner Quadrant, which uses real data from purchased customer policies to form statistics about rates.
|State||Annual Premium||Higher/Lower||Higher/Lower %|
|District of Columbia||$3,692.81||-$746.43||-16.81%|
Four of the five states that Geico has the lowest rates compared to the state averages are in the northeast. One is in the south.
- Georgia: -40.06 percent
- Massachusetts: -43.63 percent
- New Hampshire: -48.76 percent
- New Jersey: -50.05 percent
- New York: -43.40 percent
The five states where Geico has the highest rates compared to the state averages are spread out across the country.
- Hawaii: +31.34 percent
- Montana: +11.84 percent
- Nebraska: +16.87 percent
- New Mexico: +28.72 percent
- Rhode Island: +11.98 percent
The overall highest rate is in Michigan at $6,430.11. The lowest overall is in Massachusetts at $1,510.17.
Geico’s median rate with all states taken into account is $3,073.66.
Comparing the Top 10 Companies by Market Share
Out of the top 10 companies, Geico is the third-cheapest. However, this is not the case in all states. How does Geico stack up against the top 10 companies in every state?
|State||Average by State||Allstate||American Family||Farmers||GEICO||Liberty Mutual||Nationwide||Progressive||State Farm||Travelers||USAA|
|District of Columbia||$4,439.24||$6,468.92||-||-||$3,692.81||-||$4,848.98||$4,970.26||$4,074.05||-||$2,580.44|
As stated before, Geico’s median rate across all states is $3,073.66. This makes it 19 percent lower than the average for all top 10 companies at $3,658.18. Only State Farm and USAA are cheaper.
|Company||Median Annual Premium||Compared to Geico (+/-)||Compared to Geico (%)|
Those are the other companies’ median rates compared to Geico’s. Liberty Mutual and Allstate have the biggest differences, higher than Geico by 42 percent and 32 percent respectively.
State Farm is 12.5 percent lower than Geico and USAA is 23.5 percent lower than Geico.
Geico is in good company with State Farm and USAA. Not only do they offer the cheapest rates, but they also have the best financial ratings and typically rate high to medium for customer satisfaction.
They are also three of the top five in car insurance companies overall, according to premiums written.
Average Geico Male vs Female Car Insurance Rates
Car insurance rates can vary according to demographics. Car insurance companies look at one particular factor when setting rates. That is, your likelihood to file a claim.
Whether you’re male or female, young or old, married or single, all goes into their models and produces the probability that you’ll file a claim. Geico is no different.
|Married 35-year old female||$2,302.89|
|Married 35-year old male||$2,312.38|
|Married 60-year old female||$2,247.06|
|Married 60-year old male||$2,283.45|
|Single 17-year old female||$5,653.55|
|Single 17-year old male||$6,278.96|
|Single 25-year old female||$2,378.89|
|Single 25-year old male||$2,262.87|
There is a $4,000 difference between the rates for a 17-year-old male and a 60-year-old female. The largest difference between sexes is at age 17 for $600. The lowest is at age 35 for $10.
Why do companies use these factors?
Statistics show that men tend to be riskier drivers, young drivers are more inexperienced than old, and married people are looked at as more stable and less likely to take risks.
Some states are doing away with using demographics to set rates. They include Michigan, California, Hawaii, Massachusetts, Montana, and North Carolina. Other states may follow suit.
Average Geico Rates by Make and Model
Sometimes new cars are more expensive to insure than older cars. This can happen for a couple reasons.
- New cars may have more expensive parts, such as complex safety mechanisms or new technology
- New cars are worth more, meaning if it were to be totaled and needed to be replaced, it would cost more
For the three cars we looked at, all three changes rates depending on the year they were made.
|2015 Ford F-150: Lariat SuperCab with 2WD 6.5 foot bed and 2.7L V6||$3,092.11|
|2015 Honda Civic Sedan: LX with 2.0L 4cyl and CVT||$3,092.58|
|2015 Toyota RAV4: XLE||$3,090.89|
|2018 Ford F-150: Lariat SuperCab with 2WD 6.5 foot bed and 2.7L V6||$3,338.40|
|2018 Honda Civic Sedan: LX with 2.0L 4cyl and CVT||$3,338.87|
|2018 Toyota RAV4: XLE||$3,337.18|
All three had higher rates for their newer models at about $250. The rates were consistent between all three vehicles, which is atypical compared to some other major companies.
Average Geico Commute Rates
Rates can vary according to your commute distance or annual mileage as well. The logic is that the farther you drive the car, the more likely you are to file a claim. Not all companies change their rates. However, Geico does.
We looked at two situations. One was a 10-mile commute or 6,000 annual mileage. The other was a 25-mile commute or 12,000 annual mileage.
|Commute and Annual Mileage||Average Premium|
|10 miles commute. 6000 annual mileage.||$3,162.64|
|25 miles commute. 12000 annual mileage.||$3,267.37|
It’s just a $100 difference between the 10-mile commute and the 25-mile commute. Geico is in the middle when it comes to the price difference, compared to the top 10 companies.
Average Geico Coverage Level Rates
Rates can vary according to coverage levels as well. Coverage levels themselves can vary for two reasons.
- The number of coverages you have: If you have collision on top of basic liability, you will have more coverage than if you just had liability
- The coverage limits you have: If you have a $50,000 coverage limit on liability insurance, you will have more coverage than if you had just a $30,000 coverage limit
Some companies price their high coverage levels hundreds of dollars above their low coverage levels. Geico is the same.
There’s a $400 difference between a low coverage level and a high coverage level. This is reflected in averages, so your situation may differ compared to these numbers.
Average Geico Credit History Rates
Your credit history is one factor that dramatically impacts your car insurance rates.
In some cases, it’s been shown, a poor credit history costs more than a DUI. Often, for companies, there is at least a $1,000 difference in rates between someone with a poor credit history and a good credit history.
Why do insurance companies do this?
They believe that your credit score influences how likely you are to file a claim.
Although this is being banned in some states, it is still widely used. And you may think that just because your credit score is good, you’ll be okay.
But insurance companies don’t use your score. They cherry-pick items from your credit history and come up with their own scores. This, according to Consumer Reports.
So what are Geico’s average rates according to credit history?
|Fair Credit||Good Credit||Poor Credit|
There’s a $1,800 difference between good credit history and poor credit history. Geico is in the upper-middle compared to other companies and their penalties for poor credit history.
Some, like Travelers at $1,100, are much lower. Some, like State Farm at $2,700, are much higher.
Average Geico Driving Record Rates
Rates can vary according to your driving record as well. With most companies offering telematics, you can get discounts for safe driving. But if you get in an accident, your rates may rise by the hundreds.
Geico’s clean record starts at $2,145.96. For each infraction we studied, it rises by the hundreds.
|Clean Record||With 1 Accident||With 1 DUI||With 1 Speeding Ticket|
The difference between a clean record and a DUI is $2,700. A car accident raises rates by $1,000. A speeding ticket raises rates by $500.
In comparison, some companies can be cheaper per infraction while others are more expensive. And even other companies have quirks.
Progressive, for instance, raises rates by about $600 for a DUI while raising rates by $1,400 for an accident. In fact, for them, a speeding ticket raises rates more than a DUI.
Some companies like Nationwide offer accident forgiveness, which means your rates won’t get raised if you get into an accident. So it varies according to the company.
However, in general, each infraction will cost you at least a few hundred dollars. And if you get a DUI, you’re looking at a rate increase of at least a $1,000. Geico is in line with the norm for these penalties.
You may have found the perfect company. You like its strong financial ratings, you are inspired by its company story, you like the work it does in the community.
But you’re searching through its coverages and can’t find the one you’re looking for. It’s a deal-breaker.
We get it. This can be a frustrating process. You can be all-in on a company but if they don’t offer the coverages you’re looking for, it’s generally on to the next one.
Geico has coverages. Lots of coverages. We’ve put this section together to show and explain them. We’ll cover discounts as well and an app that can lower your car insurance rates.
Ready? It’s time for the home stretch.
Types of Coverages Offered
Geico offers 11 different coverages, based on its website. We’re dividing them here as personal auto coverages, vehicle coverages, and special auto coverages.
For personal auto coverages, Geico offers the six standard coverages.
|Personal Auto Coverage||Purpose||Example|
|Bodily Injury Liability||Will pay for the other drivers' medical bills/loss of income in an accident you caused||When the 25-year-old rock star you hit has broken his strumming hand|
|Property Damage Liability||Will pay for the damage to the property in an accident you caused||When the policeman insists you pay for hitting his vehicle|
|Personal Injury Protection||Pays for your medical bills/loss of income after an accident||When someone T-bones you and you get a strained neck|
|Uninsured Motorist||Helps you when you are in an accident with a driver who's uninsured||Because drivers in American have no chill|
|Underinsured Motorist||Helps you when you are in an accident with a driver who's underinsured||Because some drivers in America have more chill than others|
|Medical Payments||Helps pay for you and your passengers' medical costs after an accident||When the hospital comes a-callin'|
For vehicle coverages, it offers the other two parts of core coverage.
|Vehicle Coverages||Purpose||You might need it:|
|Collision||Pays for damages to your car in a collision with an object or vehicle||When an 80-year-old woman strikes your car from the rear|
|Comprehensive||Pays for damages to your car for situations not involved in a collision (theft, vandalism, etc.)||When a 16-year-old kid spray-paints your car|
It offers three special auto coverages, all in the case of your car breaking down or if you get in an accident.
|Special Auto Coverages||Purpose||You might need it:|
|Emergency Roadside Assistance||Pays for the cost and labor when you car breaks down on the road||When you have a flat tire and it's raining, hailing, and cars are whipping past you|
|Rental Reimbursement||Reimburses you for a rental car if your car is in the shop for a claim||When you need to get to work but your car has major damage from an accident|
|Mechanical Breakdown Insurance||Pays for repairs to your car with just a $250 deductible||When your warranty expires and your radiator goes out|
Factors That Affect Your Rate
One factor we haven’t talked about that affects your rates is where you live. Your state, your city, and even your ZIP code can affect your rates, sometimes drastically.
For instance, take a low-costing state like New Hampshire versus a high-costing state in Michigan. The rate differences are in the hundreds.
- On the low end: New Hampshire with $818.75
- On the high end: Michigan with $1,364
Even further, take the most expensive cities in Michigan and you’ll see that rates even within a state can differ by the thousands.
- Cheapest: Saint Louis at $7,916.29
- Most expensive: Detroit at $26,966.81
They can also vary within ZIP codes, as shown by these two ZIP codes in New Hampshire.
- Cheapest: 03109 at $3,720.88
- Most expensive: 03104 (Manchester) at $3,845.88
There are too many reasons to county why rates would change based on geography. States have different legal systems, which can lead to higher or lower rates.
Some cities have higher or lower rates of accidents and specific driving challenges. And some ZIP codes might have higher or lower rates of vehicle thefts or property damage.
Just to name three. Where you live can save you money or cost you money.
Getting the Best Rate with the Geico
When it comes to getting the best rate, discounts help a great deal. Geico has 32 discounts, which is at the lower end of the top 10 companies.
We divided them here into personal auto discounts, car discounts, driving discounts, policy discounts, and extra discounts.
Geico has nine personal auto discounts, including some for federal employees and some for military.
|Personal Auto Discounts||Details||Percentage Saved (if known)|
|Distant Student||Must be at least 100 miles away||-|
|Emergency Deployment||For military personnel||-|
|Federal Employee||Also called the Eagle DIscount||8|
|Further Education||A 4-year degree or higher||-|
|Good Student||Be in upper 20 percent of class||15|
|Homeowner||Must own a home||-|
|Military||Active or retired||15|
|Occupation||Only available in AZ||-|
|Students & Alumni||School specific||-|
Geico has nine vehicle discounts, including one for farm vehicles and one for green vehicles.
|Car Discounts||Details||Percentage Saved (if known)|
|Anti-lock Brakes||Advanced safety feature||5|
|Anti-Theft||To keep you from making a theft claim||25|
|Daytime Running Lights||Available in LA and NY||1|
|Farm Vehicle||Certain vehicles that are used on farms||-|
|Green Vehicle||To protect the environment||-|
|Newer Vehicle||When insuring a newer vehicle||-|
|Passive Restraint||An advanced safety feature||40|
|Utility Vehicle||Sometimes referred to as a truck with low sides||-|
|Vehicle Recovery||Available in CA, MA, NJ, NY, and RI||25|
Geico has five driving discounts, including two for safe or defensive driving.
|Driving Discounts||Details||Percentage Saved (if known)|
|Defensive Driver||Usually must be over 50||-|
|Driving Device/App||For DriveEasy||-|
|Low Mileage||When you drive under a certain amount of miles||-|
|Safe Driver||When you are a safe driver||15|
|Seat Belt Use||When you use a seat belt||15|
Geico has seven policy discounts, including two for bundling policies.
|Policy Discounts||Details||Percentage Saved (if known)|
|Continuous Coverage||When you don't have a lapse in coverage||-|
|Early Signing||Usually 7 days before your current policy expires||-|
|Family Legacy||When generations of your family have been with Geico||-|
|Full Payment||For paying off policy in one to two payments||-|
|Loyalty||Depends on how long you've stayed with Geico or your other company||-|
|Multiple Policies||Also called a bundle discount or package deal||10|
|Multiple Vehicles||Discounts for insuring more than one vehicle with Geico||25|
Geico has two extra discounts, including one for being claims free.
|Extra Discounts||Details||Percentage Saved (if known)|
|Claim Free||Must be 5 years accident-free||26|
|Driver's Ed||Driver must be under 21||-|
After years of resisting telematics and poking fun at its competition for their apps, Geico rolled out its first telematics app this summer.
The impetus, it is theorized, came from Progressive. The Flo company had a sizeable lead in loss ratios, which meant it was filling less claims. This was likely a result of its accurate telematics system that monitors driver behaviors.
Geico is test-piloting its app in Pennsylvania but plans to release it to more states soon.
Now, what does it do?
It’s called DriveEasy and it functions like most other telematics apps. It records data about miles driven, time of day driven, how many hard-braking incidents you have had, and other driving behaviors.
It also monitors distracted driving behavior, such as making hand-held calls or pressing on the phone screen, like texting.
You can get up to a 20 percent discount on rates just for signing and likely more discounts will be available with the monitoring of driver behavior.
Canceling Your Policy
So you want to cancel your policy. Maybe you don’t like the company, are moving, or can’t afford car insurance any longer. You want to cancel. But you know some companies don’t make it so easy to.
We understand. We get it. Some companies want to tie you up in policies and make it difficult to get free from them. Is Geico that way?
Let’s find out. We’re heading into stretch four.
Geico, fortunately, makes it easy to cancel your car insurance policy. To start with, there’s no cancellation fee.
Is there a refund?
There is also a pro-rated refund. This means that if you paid for your policy through February and you cancel in November, you will receive money back from your date in November to your date in February.
How to Cancel (Step-by-Step Guide)
To cancel with Geico, you only need a few simple steps. However, this is a tricky situation. There’s the value of canceling your policy, the legal issues, and the timing. In this step-by-step guide, we walk you through all of that.
Step #1 Evaluate if This Is the Right Time
There are situations where you might feel it’s time to change insurance policies or cancel your insurance altogether. They can range from a lack of need for a car to unhappiness with an insurance company.
- You don’t need a car. Maybe you’re reducing your carbon footprint, choosing to get more exercise, or putting your car into storage. You don’t need a car and want to cancel.
- You’re moving. Maybe you can’t take your policy with you or just think it’s time for a change. You want to cancel your policy and move to another company.
- You’re unhappy with your current company. Maybe its customer service is terrible, your rates have jumped this past year, or you’ve just found a better company. You want to cancel.
In each of those situations, there are pitfalls to watch out for. We’ll cover the major ones in Step 3.
Step #2 Contact Geico
Geico makes it easy to cancel. You can either cancel by mail or by calling them.
To cancel by mail, you’ll want to use its site map to find the underwriting mailing address for your state. It is under the header Correspondence on the state page.
To cancel by phone, calll 1-800-841-1587 to speak with a rep. You may be asked to speak with the Interactive Voice Response (IVR) system. For both, you may need your policy number.
That’s it. It’s simple.
Step #3 Avoid These Two Mistakes
However, there are two mistakes to watch out for when canceling your policy.
Don’t cancel before having another policy lined up. If you will be driving your car, you’re legally required to have insurance.
Insurance companies are required to notify the DMV if you’ve canceled. If you don’t have another policy in place, you might be asked to surrender your plate and tags.
Don’t just stop paying and assume the policy will be canceled. Yes, your policy will likely get canceled, but you might be billed for the grace period.
And there are horror stories of people who had canceled and were still being billed. Take all the mistakes to get it right, so that the company has no legal reason to keep billing you.
Step #4 Contact Necessary Parties
If you’re moving, you can contact the DMV of your new state. If your car is under a loan, you can contact the lienholder or any other person that has a vested legal interest in the car.
When can I cancel?
With Geico, anytime.
How to Make a Claim
When you’ve been in an accident or dealt with an incident like vehicle theft, the last thing you want is a difficult claims process. Fortunately, today, there are more ways to file a claim than ever.
How do you make a claim with Geico? Let’s find out. Get ready for top gear. Just three stretches to go.
Ease of Making a Claim
The first part of the claims process actually occurs before filing a claim.
This is the information gathering stage.
In this stage, whether you were in an accident or victim of another incident, you want to gather as much information as possible. Essentially, all information that is pertinent for you to make a claim.
- Phone numbers and contact information of all involved parties
- Phone numbers and contact information of any witnesses
- Any photos you can take of the incident or any damage to your or any other vehicle
Next, you can submit your claim to Geico through three channels.
- By phone at 1-800-841-3000
- Online through geico.com/claims
- Through the mobile app
Have all the information handy. Now, will your claim be approved?
It’s tough to tell based on individual factors and every situation is unique. However, there are a couple of statistics that can tell us how many claims Geico is approving generally.
Both of those come from the National Association of Insurance Commissioners.
As stated earlier in this guide, Geico’s premiums written increased 45 percent for private passenger auto from 2015 to 2018. This increase came from a jump of over 10 million premiums.
|Private Passenger Auto||22,808,382||25,531,762||29,596,404||33,075,434||45.01%|
This is significant growth that is matched only by one company. That is Progressive.
The premiums written statistic gives us access to another. In this case, the statistic was mentioned in Geico’s Position for the Future section. It is called the loss ratio.
The loss ratio is a ratio between the number of premiums written and the number of claims approved. This creates a percentage based on the amount of money a company is bringing in.
Anything above 100 percent (or 1 in the table) means a company is losing money. Anything below 50 percent (.5 in the table) and a company may not be approving claims.
|Private Passenger Auto||0.74||0.75||0.77||0.71|
All the loss ratios for both the private passenger lines and the total lines are in the sweet spot between 60 percent and 80 percent. What does this mean for your claim?
It means that your claim has a better chance of being approved than some other top companies. However, if it’s not, there are a few likely reasons for the denial.
- Your coverage limits were used up. If your comprehensive insurance has a coverage limit of $50,000 and your damage was worth $50,001, you’re responsible for the $1.
- You don’t have the correct coverage. If you have gotten hit by an uninsured motorist and file a claim, you need uninsured motorist coverage or collision to get paid. Comprehensive won’t cover it.
- You were caught breaking the law at the time of the accident. If you were caught texting, speeding, or drinking and driving, it is possible your claim will be denied.
How to Get a Quote Online
Getting a quote should be easy. After all, a company wants your business, right? But sometimes that’s not the case.
Will it be for Geico?
We’ll take you step by step through Geico’s quote process, which is both simple, user-friendly, and relatively short compared to other companies.
Step #1 Go to the Homepage
Go to the homepage at www.geico.com.
Step #2 Choose Your Purpose and Bundling Options
First, select the reason you’re getting a quote.
Then select any bundling options you might want.
Step #3 Submit General Demographic Information
Submit your name.
Then submit your date of birth.
Then submit your address.
Step #4 Add Vehicle Information
Add your vehicle make and model.
Select whether it’s financed, leased, or owned.
Select its primary usage.
Put in the annual mileage.
Step #5 Add Prior Insurance Information
Select whether you have insurance currently.
Select the current insurance provider and the bodily liability limits you have.
Step #6 Add Further Demographic Information
Add if you got your license before turning 30 in the U.S., its territories, or Canada.
Add your level of education.
Add your employment status.
Add your occupation.
Step #7 Add Driving History
Add details about any incidents.
And more details about those incidents.
Step #8 Add Contact Information
Add your email address and a contact number.
Step #9 Get Your Quote
Take a look at your premium.
Design of Website and App
As technological advancements have increased, car insurance companies have begun offering users more opportunities to manage their accounts digitally.
Most have rolled out apps, and it’s somewhat assumed that all have websites. But there are always questions.
- How easy will it be for me to manage my account?
- Can I submit claims through the app?
- Is the telematics system accurate?
What about these questions for Geico? Let’s find out. Last stretch.
Geico’s website is easy and straightforward. First, you’ll be taken to its homepage.
If you click on the insurance button at the top, then hover over vehicle insurance, this menu will pull up.
Click on the auto button and you’ll be pulled to this page.
If you scroll down, you’ll see a section about why you need car insurance.
How easy can you find answers?
The website is easy to navigate. If you click the magnifying glass at the top right, it’ll pull down this search bar.
There, you can search for various topics, including those in its tools and resources page, Geico’s About page, and other sections of the site.
Is the design a plus or minus?
The design is a plus. It’s a basic website, which is appealing because it’s easy to navigate and find information. This, without dealing with a barrage of material that’s irrelevant to the search.
It makes things simple for the user, which can be helpful.
Geico’s app has been around for a number of years. So what do users think of it?
iOS users give it a 4.8 out of 1.7 million ratings.
One reviewer wrote, “I called Geico’s number from the mobile app, due to me calling from the app all of my info was automatically available to the representative, SUPER convenient. There was no wait time “
Android users give it a 4.8 out of 430,000 reviews.
One reviewer wrote, “I honestly love Geico, the app is amazing and convenient especially when you need to postpone a payment. Also, you can report any accidents and change any of your information for your account if any mishaps come up.”
How easily can you manage your account using just the app?
According to the app’s description on the Google Play store, there are nine features for Geico customers.
- Access to all your GEICO insurance policies
- View and share your ID cards
- Pay and manage your bills
- Call emergency roadside assistance
- Submit claims
Just to name five.
Is the design a plus or minus?
Overall, users seem happy with the app.
Some common plusses about the app include its functionality, its ease of use, the fact that you can call support and have all the app information already available to the customer service rep.
There are problems with the loading speed, as several users on Google Play reported that it takes a long time to load between screens.
DriveEasy is a fairly new app still in the beta stage. So, what do users think of it?
iOS users give it a 4.4 out of 15 ratings.
One reviewer wrote, “I am one of the app beta testers, and so far I really like it. I appreciate the gamification of safer driving, and I definitely believe it makes me consciously NOT want to touch my phone while driving.”
Android users give is a 2.6 out of 12 reviews.
One reviewer wrote, “Okay! numerous times it logs a “Hard Break”! Which is inaccurate! late at night I’m the only one on the road.”
What is its functionality?
DriveEasy, according to the iOS app description, does six major things.
- Securely reviews your driving habits automatically from the app
- See personalized info about how you’re driving
- Review things like hard braking, phone handling, distance driven, and time of day
- Break your record for no distractions
- Beat your personal best with tips to improve your score
- Invite other drivers on your policy to see who can get the best score
It seems to combine safe driving with gamification, which is an interesting approach.
Is the app accurate?
Users are mixed about this version of the app.
Some write that it doesn’t register hard-braking incidents properly. Others write that it kills their battery. And a couple write that it doesn’t differentiate whether you’re a driver or passenger in a car.
It’s a work in progress.
Pros and Cons
|Great financial strength ratings||Once had major financial turmoil|
|Decent customer satisfaction ratings||Employees don’t think particularly highly of it|
|Available in all 50 states||Rates in some states are much higher than average|
|Rolled out a telematics system in 2019||Users are mixed about its functionality|
The Bottom Line
Geico is a good company. It has strong financial ratings, decent customer satisfaction, a good parent company, low rates, an easy to navigate website, and a functional app.
Generally, there’s something in these bottom line sections we like to highlight as a negative.
The only thing we can see with Geico is the amount of money it spends on advertising. This can lead to rate hikes, as it’s simple money in, money out.
However, Geico’s rates are the second-lowest overall for the general population and third overall if you include USAA.
There’s a reason it has gained two percent in private passenger auto market share in four years. It is a good company and people are flocking to it.
Geico Car Insurance FAQs
Every company has a frequently asked questions. Here are seven with Geico.
Why is Geico so cheap?
Geico is cheaper because it sells insurance directly to consumers as its primary mechanism, rather than relying mostly on agents. It also offers a good amount of discounts that consumers can take advantage of.
Which Geico commercial was voted the best?
Best of Geico was a competition to see which Geico commercials were the best. The top selection was the Camel “hump day” commercial, followed by the pig squealing wee all the way home and then the caveman in the airport.
Will Geico tow my car?
Geico offers an emergency roadside package which generally includes towing features, such as if your car breaks down in the rain and needs to be moved to a safer spot or to a repair shop. It is a special auto package.
Will Geico cover my rental car?
Geico offers rental car reimbursement as part of a special auto package. If your car is in the shop for something related to an insurance claim, you can be given a rental car and reimbursed for the cost of it.
Who is Geico’s ad agency?
Geico partners with The Martin Agency, based in Virginia, for its marketing campaigns.
The company was founded in 1965, before being split and rebranded in 1975. It has also worked for UPS, Oreo, Warner Brothers, and the Virginia Tourism Corporation.
When can I cancel my policy with Geico?
With Geico, you can cancel your policy anytime for no fee. The process is easy and involves either mailing them a letter stating your cancellation or calling them over the phone.
Make sure to follow proper procedures and have your policy number handy.
When was Geico founded?
Geico was founded in 1936 by Lee Goodwin Sr. and his wife Lillian Goodwin.
Their initial target market was federal employees, who they believed would be less risky drivers. It was founded in Fort Worth, Texas, and in 1937 moved to Washington D.C.
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