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 is Geico getting more expensive? ›
Why did Geico raise my rates? Geico may have raised your rates because of changes to your policy or circ*mstances. Examples include adding a new type of coverage, becoming eligible for an additional type of discount, being involved in an accident, or buying a new car.
Why did my car insurance go up in 2024? ›
It's normal for car insurance rates to increase every year even if you haven't changed your policy or filed any claims. This can happen due to multiple factors, from inflation to an increase in claims in your area.
Is Geico overcharging? ›
Geico must face California class action claiming it overcharged on car insurance. Oct 31 (Reuters) - A federal judge on Monday said a lawsuit accusing Geico Corp of overcharging more than 2 million California policyholders on car insurance early in the COVID-19 pandemic may proceed as a class action.
How to get Geico to lower your rate? ›
How to lower my car insurance rates
- Add multiple cars to your policy: Adding multiple cars to your insurance policy can often lead to lower rates through multi-vehicle discounts.
- Bundling auto and home policies: We offer bundling discounts for loyal customers who purchase multiple policies through GEICO.
Both Geico and Progressive offer cheap car insurance to drivers across the country. Geico's rates are typically lower overall, but Progressive tends to offer better prices to high-risk drivers. High-risk drivers are those with a recent DUI, at-fault accident or speeding ticket on their driving record.
Is GEICO in trouble financially? ›
Geico is going through a rocky patch, suffering a $1.9 billion pretax underwriting loss in 2022. Competitor Progressive is also snapping up market share, according to an analysis from UBS.
Is Allstate or GEICO more expensive? ›
Geico and Allstate are both reasonably priced insurers for most drivers, but there are some clear differences when it comes to the average cost of their policies. As you can see in this chart, Geico is the cheaper of the two for the average driver.
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.
How much will insurance cost in 2024? ›
Nationally, the average cost of full coverage car insurance rose to $2,543 in 2024, an increase of 26 percent over last year.
Car insurance rates can change based on factors like claims, driving history, adding new drivers to your policy, and even your credit score.
Why did my car insurance go up when nothing changed? ›
Increased car repair expenses for parts and labor and higher replacement costs can lead to insurance rate hikes. Additionally, economic factors, such as inflation and changes in interest rates, can impact insurers' investments, prompting them to adjust premiums to maintain their financial stability.
Why are GEICO rates so high? ›
It's known for raising accident-prone drivers' premiums by more than many other insurance companies. As such, it has developed a reputation as a "trap" company that charges new customers low premiums to earn their business and then jacks up its rates at the first sign of trouble.
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.
Why is GEICO closing? ›
The Chronicle reports that insurance industry magazines linked Geico's decision to close California sales offices to its failure to raise insurance prices in compliance with Sacramento regulations and other market forces.
Why did my insurance randomly go up? ›
If your car insurance goes up for seemingly no reason when you renew your policy, it's likely due to an increase in risk that's outside of your control. This could include reasons like increased claims in your area (due to more extreme weather damage, more accidents, etc.) and higher car repair and replacement costs.
Will Geico raise my rates after a claim? ›
Your insurance rate won't go up as a result of your first otherwise surchargeable, at-fault accident. Subsequent occurrences do not qualify for Accident Forgiveness. Accident Forgiveness eligibility is determined by your specific policy type, as well as your state laws and regulations.
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.
Why are all my car insurance quotes so high? ›
While auto insurance premiums are individualized, overall changes in the insurance industry can impact all policyholders. Your rate may have increased due to changes in your driving record or driving profile, such as receiving a speeding ticket or an increase in your annual mileage.
