Geico is so expensive because car insurance is expensive in general, due to rising costs for insurers. But at $462 per year, the average Geico car insurance policy is actually cheaper than coverage from most competitors. In fact, Geico is one of the cheapest car insurance companies nationally.
Even though Geico offers cheaper-than-average rates, its premiums can get expensive for drivers with certain characteristics. For example, teenagers pay an average of $1,544 per year for Geico insurance, compared to $462 per year for older drivers. Additionally, drivers who recently had an at-fault accident pay an average of $826 per year for Geico coverage, which is 79% more than drivers with a clean record.
Factors That Can Make Geico Insurance More Expensive
- Being a young or inexperienced driver
- Purchasing a full coverage policy versus minimum coverage
- Causing an accident or being convicted of a moving violation
- Living in a high-risk ZIP code
- Driving an expensive vehicle
- Having a poor credit-based insurance score
If you're having trouble affording your Geico insurance, there are ways for you to lower your premium. For example, you can take advantage of Geico discounts or reduce your coverage.
In some cases, it might be better to switch insurers altogether. It's usually a good idea to compare quotes from at least three different insurers to see if you can find a better deal elsewhere. Each insurer uses its own algorithm to calculate premiums, so even if Geicois charging you a high premium, you may be able to find a cheaper policy with another insurance company.
To learn more, check out WalletHub's Geico insurance review.
This answer was first published on 10/18/23 and it was last updated on 03/08/24. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
FAQs
If you leave out information in the quoting process about accidents you've been in (even minor ones), your policy rate may be higher. If you forget to provide details about your significant others' driving history, such as speeding tickets, this may lead to a higher rate.
Why did my car insurance go up in 2024? ›
With increasing costs across various parts of the automotive industry, from higher average repair costs to continuing supply chain issues, auto insurance companies have needed to raise rates to turn a profit.
Is Geico overcharging? ›
March 12 (Reuters) - Geico, the car insurer owned by Warren Buffett's Berkshire Hathaway (BRKa. N) , opens new tab, will not face class-action claims as it defends against a lawsuit alleging it overcharged policyholders early in the COVID-19 pandemic, a federal judge ruled on Tuesday.
How to get Geico to lower your rate? ›
The following four tips could help you get cheaper car insurance:
- Install Safety and Security Devices.
- Dig for Discounts.
- Combine and Consolidate Policies.
- Opt for a Higher Deductible.
Probably because you live and drive in an area where the number of claims made to that insurance company has gone up. Your area is now a greater risk for them to insure drivers in. Or, maybe reparation costs have gone up, so each claim they pay out on costs them more.
Did Geico increase their rates? ›
Across the country, Geico increased its average auto insurance premiums by 25.9% from 2022-2023.
How much will insurance cost in 2024? ›
According to a report from Bankrate, average premiums for full coverage auto insurance hit $2,543 in 2024, a 26% increase from 2023. Unsurprisingly, drivers across the U.S. are looking for ways to save. Nearly half (49%) of auto insurance customers are actively shopping for a new plan, according to J.D. Power.
Why did my car insurance go up when nothing changed? ›
As unfair as it may seem, you may experience an auto rate increase due to insurance claims data in your ZIP code. If your area has a high rate of theft, accident, or weather-related claims, it becomes riskier for an insurance company to cover drivers there.
Are car rates going down in 2024? ›
Auto loan rates for new and used vehicle purchases fell in the first quarter of 2024 to 6.73% and 11.91%, respectively, down slightly from the 15-year highs we saw at the end of 2023, according to Experian.
What is the GEICO controversy? ›
GEICO, one of the largest auto insurance companies in the United States, has settled allegations by the National Labor Relations Board (NLRB) that it engaged in illegal anti-union activities, including threatening and interrogating employees in upstate New York about their unionization efforts.
Geico generated an underwriting profit of $3.6 billion last year, compared with a loss of $1.9 billion in 2022. But that higher profit came at a cost. Geico had the largest decline in market share among the top 10 U.S. auto insurers. It appears to have shed unprofitable business.
Is GEICO the most expensive car insurance? ›
Geico is one of the most popular insurance companies in the country, and its average car insurance premiums are 24% cheaper than the national average.
Who is cheaper, Geico or Progressive? ›
Key Takeaways: Geico is best for you if you're simply looking for the cheapest option, as the provider has a cheaper average rate estimate in 82% of states across the U.S. Progressive is best for you if you're looking for more coverage options, add-ons and customizations.
Who typically has the cheapest car insurance? ›
The best and cheapest car insurance
State Farm is the cheapest national car insurance company, at $50 per month for liability-only coverage. American Family and Geico also have affordable quotes, averaging $61 per month. USAA has the cheapest rates overall, charging $34 per month.
Is Geico hard to deal with? ›
Customer reviews for Geico frequently mention challenges communicating with the company and difficulties dealing with claims.
Why is my car insurance suddenly so high? ›
While it can seem arbitrary, there are actual reasons you can see your price go up and down. Car insurance rates can change based on factors like claims, driving history, adding new drivers to your policy, and even your credit score.
Do insurance rates go up after no fault accident geico? ›
Whether and how much your insurance may go up after an accident usually depends on the details and specifics of the accident, the severity, and any damages that occurred. You can learn more about how a claim may affect your policy.
Is Geico cheaper than Progressive? ›
Key Takeaways: Geico is best for you if you're simply looking for the cheapest option, as the provider has a cheaper average rate estimate in 82% of states across the U.S. Progressive is best for you if you're looking for more coverage options, add-ons and customizations.
Can Geico Drive Easy raise your insurance? ›
If you know you're a good driver, Geico DriveEasy could be a good option. Geico can raise your rates if your driving habits are risky, so the program is best for people who already have good driving skills. Even if you think you're a good driver, you might be surprised by the data that Geico collects.
