UPDATED: Mar 12, 2020
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|Current Executives||Tony Nicely - Executive Chairman|
Bill Roberts - President and CEO
|Number of Employees||40,000|
|Total Assets||$32 billion|
|HQ Address||5260 Western Avenue|
Chevy Chase, MD
|Premiums Written (Auto, 2017)||$33,075,434|
|Best For||Budget shoppers|
Most drivers want to save money on car insurance, so they seek out companies that offer the best discounts to be cost-efficient. Throughout our website, you’ve seen state and city guides informing you about the top car insurance companies in each respective area. One of these companies happens to be Geico.
Like the state and city guides provided for you on buyautoinsurance.com., this guide will give all the information you need about Geico. Drivers who want to choose Geico as their car insurance provider should read this guide first to get an idea of what to expect from the second-most popular car insurance company in the U.S.
If you want to receive a car insurance quote right now, enter your ZIP code in the free quote box above to see what you’re likely to pay for car insurance in your local area. For more information on Geico car insurance, continue through this guide.
Cheap Geico Car Insurance Rates
Car insurance companies are competitive with car insurance rates. Between discounts and state rates for car insurance, drivers across the U.S. are always searching for the best deal. Geico is one of the companies with some of the most affordable rates in each state.
This section of the guide will show all the rates listed for Geico. In addition to the average annual rates, we’ll explain the factors that determine your car insurance.
Geico Availability and Rates by State
Part of Geico’s success is its availability across the U.S. As prosperity grows, expect car ownership to increase, and that’s potentially more car insurance premiums Geico capture. If you’ve just bought a vehicle and are looking at Geico for car insurance, here a few average annual rates you can expect in your state. Use the search box in the table to search for your state quickly.
|State||Average by State||Geico Annual Premiums by State||Higher/Lower than Average||Higher/Lower than Average %|
|District of Columbia||$4,439||$3,693||-$746||-16.81%|
First, we’ll explain what the values mean.
Average by the state indicates the average annual rate for insurance in the state, regardless of the company.
Next to that is Geico’s average annual rate (premium is the same thing as rate and often used interchangeably). Higher/lower than average is the difference between the overall state average and Geico’s state average, and the higher/lower than percent is the difference divided into the overall state average.
You can see the difference between Geico’s average and the state average in the map below.
For example, the overall average annual rate for California is $3,689, while the average annual rate for Geico car insurance in California is $2,886. When you subtract the overall average annual rate using Geico’s average, you get $803.
Since Geico’s rate is less than California’s overall state average, we use a negative symbol to indicate that it’s less. To find the percent, divide $803 and $3,689 (803 / 3,689). You’ll get a solution of 0.2178, which is 21.78 percent.
Based on these factors, the cheapest companies for Geico car insurance in Massachusetts, New Hampshire, and Ohio.
Comparing the Top 10 Companies by Market Share
Earlier in the Geico guide, we mentioned market share. Geico, although it is one the biggest and most popular insurance companies, shares the market share spotlight with nine other companies. Geico has a 13 percent market share compared to other companies.
These companies rival Geico’s car insurance rates and services by offering the same coverages. Some are cheaper while others or more expensive. Let’s examine which ones are and compare them.
As far as annual premiums go, Geico is one of the cheapest out of the eight companies in the table. The only car insurance cheaper than Geico is USAA. The most expensive on the list is Liberty Mutual.
Average Geico Male vs Female Car Insurance Rates
Your age, gender, and marital status can determine how much you pay for car insurance per year. On August 1, 2019, California, Hawaii, Massachusetts, Montana, Pennsylvania, North Carolina, and some parts of Michigan outlawed car insurance based on these factors.
For all other states, younger and single males are likely to pay more money for car insurance. Females pay less for car insurance but pay more as a percent of income.
|Age, Gender, & Marital Status Summary||Geico Average Annual Rates|
|Single 17-year-old female||$5,654|
|Single 17-year-old male||$6,279|
|Single 25-year-old female||$2,379|
|Single 25-year-old male||$2,263|
|Married 35-year-old female||$2,303|
|Married 35-year-old male||$2,312|
|Married 60-year-old female||$2,247|
|Married 60-year-old male||$2,283|
Compared to some averages across the state, Geico’s annual premiums are relatively lower than some car insurance companies, which charge over $8,000 for car insurance for teen drivers. Car insurance rates are much cheaper for drivers 25 years and older as evident in this line graph.
For Geico policyholders, annual premiums are roughly the same price regardless of age, gender, and marital status.
Parents of teen drivers should consider non-owner car insurance to see if they can receive a discount from Geico. Contact an agent right away to see if they offer it or see if they’ll bundle it with your current policy.
Average Geico Rates by Make and Model
The type, make, and model of your vehicle is also a determining factor in car insurance. Car insurance companies may evaluate the value of your vehicle and determine how much your annual premium will be. The older the vehicle, the less your car insurance could be.
However, if you have a later model vehicle, a classic vehicle, or a customized vehicle, a car insurance company may charge higher than average rates. Here are a few examples of car insurance rates based on the type of vehicle.
|Make and Model of a Vehicle||Geico Average Annual Rate|
|2015 Ford F-150: Lariat SuperCab with 2WD 6.5 foot bed and 2.7L V6||$3,092|
|2015 Honda Civic Sedan: LX with 2.0L 4cyl and CVT||$3,093|
|2015 Toyota RAV4: XLE||$3,091|
|2018 Ford F-150: Lariat SuperCab with 2WD 6.5 foot bed and 2.7L V6||$3,338|
|2018 Honda Civic Sedan: LX with 2.0L 4cyl and CVT||$3,339|
|2018 Toyota RAV4: XLE||$3,337|
Look how the rates gradually increase as the year progresses. Newer models are more expensive, and car insurance companies have to issue rates that will effectively cover the value of the vehicle in case of an accident.
Average Geico Commute Rates
When you’re enrolling in a policy, an agent may ask you what you’re using the insured vehicle for. If you use your vehicle for something like commuting to school or work, the car insurance may maximize the commute rates by giving you a 25-mile, 12,000 commute rate.
Car insurance companies use commute rates to estimate how much you drive your vehicle. Let’s see the average annual rates based on the commute from Geico.
|Commute Type||Geico Average Rate|
|10-mile, 6,000 miles annually||$3,163|
|25-mile, 12,000 miles annually||$3,267|
Expect to pay less than $3,500 per year with Geico if your car insurance is based on commute rates. It may be more effective if you spend an extra $104.
Average Geico Coverage Level Rates
Out of all the factors, the coverage level has the most depth.
The coverage level is based on the state’s minimum requirements for car insurance.
If policyholders think they need a higher coverage limit, they can ask their car insurance provider if they can raise the coverage limit. The lowest coverage limit is the bare minimum, which is liability car insurance. Under liability car insurance, there will be a coverage rule that pays a certain amount for bodily injury and property damage.
Some states require additional coverage along with bodily injury and property damage such as personal injury protection (PIP) and medical payment (MedPay).
If a coverage rule isn’t enough, you can ask for a rule with a higher coverage limit. Medium and high coverage limit comes with a more expensive price tag for annual premiums. But how much more? Let’s examine the rates based on coverage levels.
|Coverage Level||Average Geico Rate|
The values for coverage level at Geico is roughly $200 apart. Some states have low coverage rules, and it may be in a driver’s best interest to get a medium to high coverage level rate. Geico agents may recommend a higher coverage level due to the age and value of a vehicle. It could be cheaper in the long-term if you got a medium coverage level.
Average Geico Credit History Rates
According to Experian associates, there’s a correlation between a person’s credit score and the total cost to insure that person.
Your credit is reviewed by car insurance companies to determine your financial ability to make premium payments.
Whenever car insurance companies check your credit, it will not affect your credit score. What will be affected is the annual premium you’ll pay. Car insurance companies tend to charge more for car insurance.
Statistics have shown that drivers with lower credit cost more to insure, and drivers with lower credit take more risks. How much more? Is it higher than average? Let’s review the cost of insurance based on credit history.
|Credit History||Geico Average Rates|
Normally, the car insurance rate for Geico is roughly $3,100. For those with a poor credit history, annual premiums for car insurance is over $1,100 more than the Geico average. Car insurance companies are not punishing those with poor credit, they have to assess the cost of car insurance for those with poor credit and it simply just cost more to insure someone with a poor credit score.
Those who have fair or good credit pay much less. Fair credit policyholder has premiums that are approximately $200 less than the Geico average while those who have a good credit history pay about $700 less.
Average Geico Driving Record Rates
One of the most important factors in determining car insurance is your driving record. When you have a clean driving record, you’ll get a major discount from car insurance companies. However, any accident, speeding violation, DUI, or other traffic violations could increase your car insurance premiums.
DUIs are a key factor when it comes to car insurance. A DUI conviction can be costly. Not only does it go on your driving record, but it could also put a driver in the high-risk pool.
Some states have a lifetime wash-out period, which means that the DUI conviction will follow the driver throughout their life. It’s possible to get out of the high-risk pool, but for states that have the lifetime wash-out rule, it may be troublesome to find car insurance through the voluntary market.
So what is it like for car insurance premiums when Geico goes by your driving record?
|Driving Record||Geico Average Rate|
|One Speeding Ticket||$2,645|
Geico policyholders with a clean driving record pay nearly $1,000 less for car insurance. Even Geico drivers with one accident or one speeding ticket pay less than the average annual rate. You can see that DUI convictions are more costly. It costs a Geico policyholder $1,700 more for car insurance if they have a DUI on their driving record.
As you shop for car insurance, you will see different coverages. Each coverage has its function and adds cost to your overall car insurance premium.
The U.S. standard for minimum car insurance is liability car insurance. Other car insurance coverages have additional benefits to ensure that you’re protected financially and give you aid in recovery from bodily injury, personal injury, and property damage.
Types of Coverages Offered
For this sub-section, we’ll explore the types of coverage offered by Geico. Geico officials provide car insurance coverage for accidents, liability, medical expenses, property, and vehicles. Geico argues the existence of full coverage car insurance.
Full coverage car insurance is the combination of liability, collision, and comprehensive coverage in one policy.
Geico has liability coverage, which is the minimum required insurance coverage needed to insure a vehicle. Within liability coverage is bodily injury and property damage liability. Bodily damage liability pays for any injuries sustained during an accident, while property damage liability pays for any damaged property.
This is where coverage limits matter. A policyholder may require a higher coverage limit just in case the accident has costs that exceed the coverage limit.
Geico also has medical coverages. They are called medical payments (MedPay) and personal injury protection (PIP). Some states require drivers to have these coverages in addition to liability coverage. These coverages further protect policyholders and no-fault drivers by providing compensation for lost wages, additional medical bills, and even funeral costs.
Uninsured and underinsured motorist coverage is essential or sometimes included within your policy.
Uninsured/underinsured coverage protects a policyholder when they’re in an accident with an at-fault driver who doesn’t have car insurance or doesn’t have enough in their coverage limit cover for damages.
These may be required for policyholders as well, it all depends on the state or city where the policyholder lives. However, collision coverage and comprehensive coverage is optional. They are highly recommended.
Collision coverage will pay for property damage regardless of who’s at-fault, while comprehensive coverage pays for damage from unexpected events such as vehicle theft, storm damage, etc.
Geico has additional car insurance coverages that are convenient for their policyholders. One of them is emergency roadside assistance, which provides help for policyholders who have blown tire. If you get that, it may be a good idea to add mechanical breakdown insurance (MBI). Here’s some information on MBI.
If it’s going to take a couple of days to repair your vehicle, Geico may recommend rental reimbursement insurance. This insurance coverage will compensate you for all the rental car fees and purchases made while your vehicle was being repaired.
Geico’s Bundling Options
Like most insurance companies, Geico has a bundling option available to policyholders who want to insure their homes. Or maybe a policyholder wants to insure their boat and contacts Geico for that. Geico has flexible bundling options that help their policyholders save money.
They have a webpage dedicated to this and offer discounts to any policyholder who wants to bundle their car insurance to home insurance, renter’s insurance, boat insurance, etc.
Discounts are the road to cheaper car insurance premiums. Geico has a few that require a policyholder to take action outside Geico’s involvement or require proof of conditions met to get car insurance discounted. For some of the discounts, a policyholder will need to know something about their vehicle. Let’s look at some of the discounts.
|Discount||Percentage Off (up to)||Details/Requirements|
|Anti-lock Brakes||5%||Vehicles with anti-lock brakes|
|Anti-theft Device||25%||Vehicles equipped with qualifying anti-theft device|
|Airbags||25% for driver side only, 40% for entire front seat||Vehicles with factory airbags|
|Seatbelt Use||15% on Medical or PIP only||Regular use of seatbelts|
|Daytime Running Lights||1%||For vehicles with daytime running lights|
|Good Student||15%||Meet grade requirement of B average or better|
|Good Driver||26%||Five years accident free|
|Multi-vehicle||25%||Insure more than one vehicle with Geico|
|Multi-policy||Varies||Have another policy aside from auto with Geico or an affiliate|
|Defensive Driving Course||Varies||Take an approved defensive driving course|
|Driver Education||Varies||Take an approved driver education course|
|Military||15%||Members of the military|
|Emergency Deployment||15%||For military members suddenly deployed|
|Group membership||Varies||Discounts for members of a variety of groups|
|Federal Employee||8%||Employees of the federal government|
The highest discounts go to policyholders who have good driving records, policyholders who have anti-theft devices on or in their vehicle, and policyholders who have multiple vehicles on one policy. Geico discounts that vary are better discussed with an agent, you could a significant amount discounted from your premium.
We mentioned how Geico is involved with community development earlier in the guide. In addition to community investment, Geico has programs for college students, college graduates, and veterans called the Leadership Program and Technology Program.
Under the leadership programs, college graduates will have the option to choose from Geico’s Management Development Program (must have a 3.0 GPA higher to join) or Emerging Leaders Program (must have a 3.5 GPA or higher to join).
For students and veterans searching for a career in Information Technology (IT), Geico has programs designed for those pursuing IT.
One is called the Technology Development Program. It’s designed to teach software development, analyst, and infrastructure. The other program is called the Veterans IT Program, where current and former members of the Armed Forces learn IT. The program lasts for one year and ensures veterans will learn the skills to become software developments and IT professionals.
Geico by Rating Agency
Instead of giving our own opinions in the guide, we’ll go with the expertise of financial and credit agencies.
These agencies measure the financial strength and credit of different industries in the U.S. and worldwide to determine how well companies are performing financially and how their overall customer satisfaction results. This short data table below shows the ratings from the most popular financial strength review agencies.
|Better Business Bureau||B+|
|NAIC Complaint Index||0.81 (2018)|
|JD Power||Claims Satisfaction 3/5|
Shopping Study 3/5
According to the data, Geico has performed well as a whole. Each agency graded Geico as good or excellent except for J.D. Power, who graded Geico with three out of five, which is an average rating.
Speaking of ratings, you’re probably wondering what most of the rating means. Each financial and credit agency measures the financial strength and credit of companies using their grading system. Although the methods of finding them are the same, their rating system is different. Therefore, the way A.M. Best rates companies are different than Moody’s and J.D. Power.
A.M. Best is a worldwide credit rating agency that particularly focuses on the insurance industry. The “Best’s Credit Ratings” are issued through A.M. Best Rating Services, Inc., which are a recognized indicator of an insurance company’s financial strength and creditworthiness.
To grade each company, A.M. Best Rating Services uses the Best Financial Strength Ratings (FSR), which is an independent opinion on an insurance company’s financial strength, and it’s the ability to meet policy and contract obligations. Let’s review the grading scale of A.M. Best.
|Category Definitions||Rating Categories||Rating Symbols||Rating Notches|
|Assigned to insurance companies that have, in A.M. Best's Opinion, a superior ability to meet their ongoing insurance obligations||Superior||A+||A++|
|Assigned to insurance companies that have, in A.M. Best's Opinion, an excellent ability to meet their ongoing insurance obligations||Excellent||A||A-|
|Assigned to insurance companies that have, in A.M. Best's Opinion, a good ability to meet their ongoing insurance obligations||Good||B+||B++|
|Assigned to insurance companies that have, in A.M. Best's Opinion, a fair ability to meet their ongoing insurance obligations. Financial strength is vulnerable to adverse changes in underwriting and economic conditions.||Fair||B||B-|
|Assigned to insurance companies that have, in A.M. Best's Opinion, a marginal ability to meet their ongoing insurance obligations. Financial strength is vulnerable to adverse changes in underwriting and economic conditions.||Marginal||C+||C++|
|Assigned to insurance companies that have, in A.M. Best's Opinion, a weak ability to meet their ongoing insurance obligations. Financial strength is very vulnerable to adverse changes in underwriting and economic conditions.||Weak||C||C-|
|Assigned to insurance companies that have, in A.M. Best's Opinion, a poor ability to meet their ongoing insurance obligations. Financial strength is extremely vulnerable to adverse changes in underwriting and economic conditions.||Poor||D||-|
Geico was rated at an A++; therefore, A.M. Best gave the car insurance company a superior rating. This means that Geico had superior financial strength and consistently met the policy and contract obligations of its policyholders.
Better Business Bureau
The Better Business Bureau or BBB is one of the most well-known agencies on the list. Not only does the BBB rate the financial strength of a company, they allow consumers and customers to make reviews about products and services. The BBB has a rating system, also. The agency bases its grading on these factors:
- Business’s complaint history with BBB.
- Type of business.
- Time in business.
- Transparent Business Practices.
- Failure to honor commitments to BBB.
- Licensing and government actions are known to BBB.
- Advertising issues are known to BBB.
But how does the BBB rate companies? This table summarizes the grading system shown below and will explain how the BBB scores or rate each company.
The BBB calls their rating system the 100-point scoring scale and uses it to assign letter grade ratings. As listed above, Geico is graded as a B+. Although it’s not the best rating, it’s a good rating.
Moody’s functions as a part of the global capital markets. They provide credit ratings, research, tools, and analysis that contribute to transparent and integrated financial markets. Moody’s parent company, Moody’s Corporation provides credit ratings and research covering debt instruments and securities.
Moody is another one of the top credit-rating agencies worldwide. This agency keeps track of the credit ratings of companies in 135 counties. Their rating system is much different than some of the others. Let’s examine Moody’s grading scale and review where Geico’s rate falls in Moody’s grading.
|Moody's Grading Summary||Moody's Grading Scale|
|Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk.||Aaa|
|Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.||Aa|
|Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.||A|
|Obligations rated Baa are judged to be medium-grade and are subject to moderate credit risk and as such may possess certain speculative characteristics.||Baa|
|Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.||Ba|
|Obligations rated B are considered speculative and are subject to high credit risk.||B|
|Obligations rated Caa are judged to be speculative of poor standing and are subject to very high credit risk.||Caa|
|Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest.||Ca|
|Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery of principal or interest.||C|
Geico’s rating from Moody’s is Aa1. The Aa rating is the highest on Moody’s chart, but why is the one there? The one represents Moody’s short-term rating. Short-term ratings are often referred to as primes. One is the highest among the short-term rating, and combined with an already excellent rating, Geico is considered one of the best insurance companies according to Moody’s rating system.
S&P stands for Standard and Poor’s Global. This international financial strength rating and credit rating agency promotes transparency and business growth. S&P Global reports credit ratings, risk research, and critical insights that are essential to translating complexity into clear reports so that consumers can make decisions with conviction.
One of the ways S&P Global helps the consumers is through their rating system. Here are the grades they use to rate companies around the world.
|Invest Grade Summary||Investment Grade|
|Extremely strong capacity to meet financial commitments||AAA|
|Very strong capacity to meet financial commitments||AA|
|Strong capacity to meet financial commitments, but somewhat susceptible to economic conditions and changes in circumstances||A|
|Adequate capacity to meet financial commitments, but more subject to adverse economic conditions||BBB|
|Less vulnerable in the near-term but faces major ongoing uncertainties to adverse business, financial and economic conditions||BB|
|More vulnerable to adverse business, financial and economic conditions but currently has the capacity to meet financial commitments||B|
|Currently vulnerable and dependent on favorable business, financial and economic conditions to meet financial commitments||CCC|
|Highly vulnerable; default has not yet occurred but is expected to be a virtual certainty||CC|
|Currently highly vulnerable to non-payment, and ultimate recovery is expected to be lower than that of higher-rated obligations||C|
|Payment default on a financial commitment or breach of an imputed promise and also used when a bankruptcy petition has been filed||D|
S&P Global rates Geico as an AA+, which is the second-highest rating on the S&P scale. Between financial strength and customer satisfaction, Geico has performed well in those departments, as reported by S&P Global.
NAIC Complaint Index
Consumer feedback is a big part of any company’s success. Many ratings from financial and credit rating agencies stem from consumer feedback. The National Association of Insurance Commissioners (NAIC) reviews complaints from car insurance policyholders and reports the total number of complaints, premiums written and earned, and loss ratio.
Where does Geico fit into all of this? Let’s look at a summarized view of Geico’s complaint information from the NAIC.
|Geico NAIC Report Summary||Private Passenger Data|
|Complaint Index||0.92 (current)|
|National Median Complaint Index||1.15|
|U.S. Market Share||4.21%|
Geico’s complaint share overall is roughly 4 percent, which is a small portion considering the number of car insurance companies in the U.S. The complaint index for Geico is lower than the national average.
But wait…Why is the complaint index different than the previous table data? The Complaint Ratio Score for Geico has been calculated to be 0.81 because of the policy type for 2018, which is based on private passenger policy. The complaint ratio score you’re seeing here is the current complaint ratio.
J.D. Power reviews all companies based on a combination of financial strength and overall customer satisfaction review. This financial strength and credit agency uses something called the Power Circle Ratings and the customer satisfaction index.
According to J.D. Power associates, Power Circle Rating, “All ratings are based on the opinions of consumers who have actually used or owned the product or service being rated.”
J.D. Power review companies by surveying customers of a company or product to rate various aspects of their service.
J.D. Power conducts annual research based on consumer feedback. This research is placed in a report called the Customer Satisfaction Index Ranking. The rankings are measured on a 1,000 point scale. The Power Circle Ratings are measured from:
- Five out of five circle rating: Among the best
- Four out of five circle rating: Better than most
- Three out of five circle rating: About average
- Two out of five circle rating: The rest
J.D. Power rates a company by region through independent studies conducted annually. For your convenience, we’ve listed each rating for Geico in each region.
(out of 1,000)
|J.D. Power Circle Ranking||J.D. Power Circle Rating|
|California||825||Better than most||oooo|
|Central||838||Better than most||oooo|
|Mid-Atlantic||845||Better than most||oooo|
|New England||836||Better than most||oooo|
|New York||823||About average||ooo|
|North Central||836||About average||ooo|
The median score of the Geico is in the low to mid 800s, and the power circle rating for Geico is about average. Based on J.D. Power standards, the company is doing moderately well.
Consumer Report is a nonprofit group that utilizes customer feedback to determine what product, service, or company is right for you, the customer. If you’ve ever been curious about how other customers feel about a particular company, you can always search for Consumer Reports online.
Consumer Reports can tell you about the consumer experience with a company, customer service from agents, policies, and claims. Let’s see a summary of what consumers had to say about Geico.
|Geico Consumer Report Summary||Consumer Report Stats|
|Car Insurance Company||Berkshire Hathaway Insurance Group|
|Reaching an Agent||Excellent|
|Simplicity of the Process||Very Good|
|Promptness of Response||Excellent|
|Damage Amount||Very Good|
|Freedom to Select Repair Shop||Very Good|
|Being Kept Informed of Claim Status||Very Good|
Based on the Consumer Report summary, Geico has lived up to its quality through great reviews from Consumer Report. Their Reader Score of 89 further proves that the company has met its obligations to consumers across the U.S.
Another website that covers the reviews from consumers and customers of companies is Consumer Affairs. This nonprofit group allows consumers and customers of car insurance to share reviews and experience with their insurer, even Geico.
This direct approach has proven to be effective for Geico, which has a 3.95 rating from 3,214 reviews from Geico customers as of January 2020. On average, Geico has more four-star ratings than any other rating on Consumer Affairs.
Geico was established in 1936 by Leo and Lillian Goodwick, which was a few years after the Great Depression. By 1948, investment banker, Lorimer Davidson joins Geico and further expands its pool of investors.
In 1951, Warren Buffett made his first purchase of Geico stock as a Columbia University student. From 1965 to 1966, Geico insurance premiums reach $150 million. Net earnings doubled to $13 million.
In 1996, Warren Buffett, Columbia University alumni, and business mogul, purchases outstanding Geico stock, making Geico a part of Berkshire Hathaway, Inc. Today, Geico has over 17 million policies in 2019 and now insures more than 28 million vehicles.
Geico Market Share
What is market share, and how does it relate to Geico’s auto insurance?
Market share is a market’s total sales that are earned by a company over time.
In our quadrant data, Geico is ranked as the second in market share for car insurance. Their rank indicates that they had one of the highest market shares in 2018. But long has Geico held the number spot, and have they improved over the years?
|Year||Geico market share|
The answer if they’ve improved is yes. Since 2015, Geico’s market share has grown a percent or more each year. This could mean that the company is growing and/or the Geico has earned more written premiums from new policies. We’ll go more into that later.
Geico’s Position for the Future
Geico looks forward to more growth. The company was founded on quality coverage and outstanding Geico customer service. So far, we’ve seen their market ratios increase over the last four years. Customer reviews have mainly positive.
Geico doesn’t show any signs of slowing down. With investors like warren Buffet pushing great service for car insurance, the company will likely continue growing in policy, premiums, and customers.
Geico’s Online Presence
Geico’s presence is stronger than most car insurance companies. Geico has 1.69 million subscribers on Youtube, over 65,000 followers on Twitter, and over a million Facebook community members interacting with them. That’s a massive number of people that follow Geico, and some of them likely have policies with the company.
Geico uses comedy to express how accidents and unexpected events can happen. From the Geico Gecko to the Caveman, Geico has made its stake in entertaining potential customers and informing the public about their excellent coverage rates. Check out these commercials regarding car insurance from Geico.
You’ve probably seen this commercial on television, which describes an unexpected event that often happens to policyholders around the U.S. Geico’s creative team is using humor to describe this situation to grab the attention of potential customers and retain policyholders.
This next commercial uses humor and relatability. Taco nights have been a trending craze in recent years and Geico capitalizes in this commercial. Let’s take a look.
Geico compares their discounts to the taste of great tacos in a funny way to grab potential customers’ attention.
Geico in the Community
Geico has at least four programs where the company is involved with the community. Community outreach is one of the ways Geico gives back, making their presence known not just an insurance company but as contributors to the improvement of others in their local area.
Geico® Cares is an action initiative where they sponsor various groups and individuals. Here are a few examples of what Geico Cares does for the community.
Habitat for Humanity and Geico® Cares have teamed up to provide homes for the community members to better enrich and encourage others to help one another. Hundreds of Geico employees volunteer each year.
Geico® Cares invest their community outreach into children hospitals, also. For over 40 years, Geico has supported the Children’s National Hospital mission, ensuring that every child in the Washington, D.C. region receives health care and provides aid when families are unable to pay.
Geico has raised more than $3.4 million for the hospital and continues to demonstrate its commitment as a trusted community partner.
Geico also encourages cleaner and more energy-efficient strategies. The company has a “Go Green” initiative on its website that promotes and sponsors energy-efficient programs that protect the environment and prevent population.
What’s it like for employees of Geico? We can review whether Geico is a good place to work. Greatplacetowork.com is one of the most popular websites where future employees and those interested in being employed with Geico. We normally provide the median age of the employees, but it’s not listed. What is listed is some other important information relevant to this section.
Geico is a financial service and insurance company, which has over 33,000 employees. The tenure for Geico is that 33 percent of employees have been working there for two years or less.
The smallest share of employees is 6 percent, which are employees who have been working at Geico for over 20 years. Out of all the employees working at Geico, 68 percent agree that Geico is a great place to work.
Geico has received some awards for being a great workplace. The Black EOE Journal honored Geico for excellence in diversity and included Geico in the “2019 Annual Yearbook” as one of the top insurance companies to promote diversity.
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Canceling Your Geico Policy
Geico has a hassle-free cancellation policy. A policyholder will have to give a reason why they want to cancel. Geico agents may ask a series of questions to make sure you’ll be insured after you cancel your policy or whether you’re receiving the discounts for car insurance.
There’s isn’t a cancellation fee, but if you still owe money from a premium, you will have to pay the premium in full before you can cancel your Geico policy.
Is there a refund?
If a policyholder has prepaid for their car insurance premiums, they will receive a refund for the insurance that hasn’t been used. Be sure to hold on to records indicating that you prepaid for car insurance premiums.
How to Cancel (Step-by-Step Guide)
Here are the steps to canceling your Geico policy. It’s an easy process, and there’s no cancellation fee.
- Contact a Geico agent at (800) 841-1587.
- If you’re asked to speak to the Interactive Voice Response (IVR), say “cancel insurance policy” and then say “auto.”
- Have your GEICO policy number ready.
If you happen to get an agent, they will ask your reason for canceling. They may take you through a few questions before you cancel as well.
When can I cancel?
Geico’s straight-to-the-point approach allows any policyholder to cancel their policy at any time or a later date.
How to Make a Claim
You can claim with Geico by phone or online. Geico doesn’t mention claims by mail but contacts your Geico regarding mail-in claims. Instead, let’s review how you can make a claim by phone and online.
Geico has a list of contact numbers for every vehicle, home, or unexpected event listed on their website. Each phone number corresponds to the different claim categories. If you happen to get into a boating accident, there’s a contact number for that.
More than likely, most of you will want to save the Geico auto claim number on your phone, which is 1-800-841-3000. Click or touch the phone number now if you’ve been in an accident and need to contact an agent right away.
To make a claim online, visit Geico’s claim website or download the Geico App. For the website, you’ll have the option to report an incident, report glass-only damage, or request roadside assistance. Geico’s website is responsive, so it will work on smartphones, tablets, and computers.
Ease of Making a Claim
Follow the prompts and answer all questions as accurately as possible. If you don’t know the answer to a specific question, be sure to connect to an agent over the phone. The Geico app and responsive web code have made it easy for policyholders to file a claim. Be sure to file the claim when the event happens. Don’t wait. It’s easier to make a claim as soon as possible.
Premiums written represent the total premiums written in a company within a year or any other time. This could be from the company itself or any other affiliated companies. Geico is an extension of Berkshire Hathaway, so the direct premiums would affect Geico.
Julia Kagan of Investopedia says, “While insurance companies can increase revenue by increasing premiums on policies that have come up for renewal, the main driver for growth in this area is writing new policies.
So what are the direct premiums written for Geico in the last few years? Let’s review the data.
|Year||Geico Direct Premium Written|
We’ve summarized the direct premiums written in this short data table. Over four years, Geico has managed to increase its direct premiums written. From 2015 to 2018, Geico’s direct premiums increased from $20.5 million to $33 million, which is a $13 million increase.
The loss ratio represents the number of claims paid out versus the number of premiums received from policyholders.
Therefore, the loss ratio is money being paid out in claims from a car insurance company and the money they earned from policyholders.
For example, if a car insurance company has a loss ratio of 67.25, it means the company spent $67.25 for every $100 they made.
Loss ratios that are too low indicate a car insurance company that doesn’t pay out claims effectively, and loss ratios that are too high or exceed 100 indicate a car insurance company that isn’t earning money.
Where does Geico fit into the loss ratio? Let’s take a look at their performance, regarding the loss ratio.
|Year||Geico Loss Ratio|
From 2015 to 2018, the loss ratio for Geico fluctuated from the high 60s to the upper 70s. On average, the loss ratio for Geico is 72.88, which means Geico spent $72.88 for every $100 they earned from 2015 to 2018. The loss ratio is relatively good, an indicator of why they’re one of the top car insurance companies in the U.S.
How to Get a Geico Quote Online
If you’re interested in getting a quote directly from Geico, we’ll provide you with a walkthrough of what you can expect. This section will give you a tutorial on how to get a car insurance quote from Geico. Let’s begin!
Step One: Enter Your ZIP Code
First, go to Geico’s insurance quote website. Once there, enter your ZIP code or the ZIP code of where you’re getting car insurance and click the [Review Your Quote] button.
You have the option of continuing with a previous quote or starting a new quote.
Step Two: Choose What You would like Insured
When you click the [Review Your Quote] button, you’ll be brought to this screen below.
You can choose one of the selections that apply to you, or you can simply skip the selection altogether.
Once the screen is cleared, you will have the option to choose from Auto (car insurance), Renters (renter’s insurance), Home (home insurance), and Condo (condo insurance). You can bundle them together and receive a discount.
For this example, we only need to choose auto insurance, so click on the car button.
Step Three: Enter Your Name, Date of Birth and Address
Geico will ask for some personal information such as your full name (middle name excluded), date of birth, and address. Geico’s website is secure and has a valid certification, so your information is safe.
Once you enter your first and last name, click the “Next” button to get to the next screen.
Geico will ask for your date of birth to verify whether you’re eligible for discounts that relate to age or discounts that relate to whether you’re a student.
The next few dialog boxes will ask for your address.
When you have the boxes filled in, click “Next” to continue.
Step Four: Enter Vehicle Details
Geico will need to know information regarding your vehicle, such as the year, make, and model.
Remember how we mentioned that car insurance companies base car insurance rates on the model and make of your vehicle? This is an example of Geico using that factor in their quote system. Continue through the quote process to see the results.
In addition to the car type, Geico will ask whether you own the vehicle, lease the vehicle, or do you have the vehicle financed. This particularly important for warranties and whether Geico can provide additional coverage such as mechanical breakdown insurance.
Geico will need to know whether you own, finance, or lease your vehicle. This will let them know if you’re eligible for specialized insurance that will help protect you in case you are in an accident.
Step Five: Estimate Commute Mileage
Remember the commute rates? In the picture below, Geico asks specifically what your vehicle is used for. It’s important to answer accurately. If you know you drive your vehicle every day of the week, you’ll likely pay higher commute rates.
Answer each dialog box as accurately as possible and move onto the next page.
This step asks you for further details about how many miles you’re expected to drive from the day you’re insured with Geico.
This is the final page regarding commute mileage. Click “Next” when you are done.
Step Six: Provide Driver Information
The next few screens are information about you, the driver. Geico’s quote website will ask you if you’re insured currently, what car insurance company you are with, how many years you’ve been with that insurance company, and your bodily injury coverage limits.
This is equally as important as driving records. Geico will need to know if you’re still insured with another company. If so, they ask you to cancel the policy of another insurance company before you can take a policy with them. They will also offer a start date to give you time to cancel the other policy.
This next page is for potential customers who already have car insurance. We’ll use this example because it’s most likely to occur.
As you can see, the coverage level from the previous company is high. Geico will compare their rates to Erie’s and will likely issue a discount.
Step Seven: Driver Information Continued
Geico will ask if you become a licensed driver before 30. This will give them insight into your driving record.
Driving experience and a clean record could mean big savings for potential customers. Younger drivers receive discounts as well, so even if you choose no, Geico will have other discounts that can help you.
This additional detail can determine if you’re at a much higher risk. There may be a correlation to education levels to car insurance, or they may be trying to determine your average annual income. In addition to this webpage, Geico will ask about your employment.
This will determine whether a potential customer is eligible for discounts such as college student discounts, and it will allow Geico to assess the risk of the driver.
The next page will ask you about your employment status.
This will examine if a potential policyholder can pay for a policy.
The final webpage for this step talks about your occupation. It would help to put in your information, considering you used your social security number (SSN) or driver’s license to get access to this part of the quote process.
Geico will likely have average annual incomes in their database.
Step Eight: Driving Incident Details
This process is particularly important. If you put inaccurate information into this step and establish a policy based on inaccurate information, Geico may cancel your policy.
Geico wants you to provide any information from accidents, violations, or convictions on your driving record.
The next few dialog boxes will need to know whether you were at fault for any incidents and how long ago were the incidents.
Some states have washout periods or periods where accidents and violations are removed from your driving record.
Step Nine: Enter Contact Information
Geico will eventually reach out to you regarding your quote. They’ll need your e-mail address and phone number so they can contact you about your online quote. Once you’ve entered your contact information, click the [Get Your Quote] button.
Geico will need to know your contact information. They will send you information regarding the start date about your Geico insurance and send you additional information on what other discounts are available in the future.
Step Ten: Receive the Geico Quote
Finally, your quote will appear after you’ve submitted all of the necessary information.
Geico will show you the discounts applied to the rate and they will show to the quoted amount you’ll pay in the next six months.
Design of Website and App
How easy is it for policyholders and potential customers to use the website? Usability is essential to keeping the every day web surfer engaged. When we’re not on our computers, we’re using our cellphones. Because people use the internet on multiple platforms, companies issue flexible codes on their webpages to make the information fit perfectly no matter what device they use.
Before we review the design of the website, let’s get a view of it.
Geico’s website had made it easy for its visitors to find the information they need through the various drop-down menus and a search query that’ll take you directly to a series of links that give you the information you need.
Is the design a plus or minus?
The downside of Geico’s introduction webpage is that you have scroll down to view the claims center or make a payment. If a computer is speed-challenged, it could frustrate visitors because they have scroll to make a payment without signing, or they have to scroll slightly to make a claim.
The upside to Geico’s website is that it’s responsive, which means it will fit the resolution or size of the device’s screen.
Geico® Mobile App
Let’s check out the mobile app and how it performs for Apple iOS and Android users.
The photo above is the Geico® Mobile App for Apple iOS. Over 1.7 million reviews are listed giving Geico a rating of 4.8 stars.
Let’s look at the reviews for Google Play.
Based on what we know from the two photos above, Geico has approximately a five-star rating in both iOS and Android stores.
With such a high rating, it must be efficient when managing your policy. Geico has won an award for its application. In 2018, Geico received the Webby Award for 2018 Peoples Voice: Mobile Sites and Apps-Financial Services/Banking. In 2019, Geico Mobile was recognized for having the best insurance app.
Is the design a plus or minus?
Geico has won awards and nominated for many other accolades since 2017, so their app design has been a major plus for the insurance company.
Pros and Cons
Even though Geico has done a lot right for their policyholders, there’s also a lot of they have wrong. We’ve summarized the pros and cons of a short data table to give you an objective view of Geico’s overall performance.
|Low rates in most states||Average/mediocre customer service rankings|
|Convenient mobile and online services||Bundling is often with third-party companies|
|Good list of discounts||New usage-based app that will take some time to debug|
Throughout the guide, we’ve careful in providing information. We’re interested in providing the facts and analyze them effectively. Geico, by the numbers, has lower rates than most of its competitors. However, their customer service reviews are average.
Potential customers may not like third-party companies when their insurances are bundled. Geico makes up for it with discounts of five percent and above. While its mobile site and website are easy to use, the usage-based app has given some policyholders trouble.
The Bottom Line
Geico sells car insurance along with home, renters, and motorcycle insurance. Positive reviews highlight the company’s customer service and low rates, but those ratings have been about average. As a car insurance provider, Geico offers lower rates, which attracts customers searching for cost-efficient car insurance.
Geico Car Insurance FAQs
In this final section, we want to address any questions that may have not been covered in the guide. If you have a question regarding Geico car insurance, post your questions in the comment section, and someone will answer them as soon as possible.
How to Report a Car Accident Insurance Claim Online?
Geico has made it easy to report a claim online. Here’s a video tutorial on how you can report a claim online.
Be sure to watch the video as much as possible, so you won’t miss any steps. If you’re experiencing issues online, contact Geico by phone.
Does Geico have Accident Forgiveness?
Yes. If you have a good driving record, Geico will forgive your accident and not increase your car insurance rates. Accident Forgiveness is not available to Geico policyholders in California, Connecticut, and Massachusetts. If you have a few violations on your driving record, you can purchase Accident Forgiveness.
Will Comprehensive Coverage Pay for My Windshield?
It depends on the state. Some state requires car insurance companies to issue a zero deductible for windshield repair and replacement. For the states that don’t, you may have to pay a deductible. Under comprehensive coverage, this deductible may be waived.
What is the Geico® DriveEasy Mobile App?
When you are enrolled in a Geico car insurance policy, DriveEasy tracks your driving habits and provides you with a score and driving tips. This video will explain more on how to use the DriveEasy® Mobile App.
If others in your family are using the DriveEasy® Mobile App, you can compare your driving performance to theirs making this app a fun way to compete on who’s a better driver.
What to Do After a Car Accident?
Geico has an extensive process of what you should do if you’re in an accident. You can get this information on their claims webpage.
Do Veterans Receive Discounts for Car Insurance at Geico?
Yes. Members of the Armed Forces, active and retired, can receive up to a 15 percent discount.
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