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
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? ›
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.
Why is my GEICO quote so high? ›
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.
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.
Although you can't negotiate your car insurance rate, you're not contractually obligated to stay with your insurance company. If you find a cheaper rate elsewhere, you can switch insurance providers. Depending on when you cancel and the fine print of your car insurance policy, you could incur fees.
Are insurance rates going up in 2024? ›
Car insurance costs have been on the rise, leaving drivers searching for ways to save on car ownership costs. In fact, according to a report from Bankrate, the average annual premium of full coverage auto insurance rose to $2,543 in 2024 — up 26% from the previous year.
Why is my car insurance so high for no reason? ›
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.
Why is car insurance so expensive all of a sudden? ›
Your particular driver profile, which includes factors like where you live, your age and your driving record, influences what you pay for car insurance. But rising car repair costs and an increase in disaster-related claims are significant reasons why car insurance rates are surging for many drivers.
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.
Key Points: Geico's full coverage costs an average of $1,572 per year, which is around 38 percent cheaper than Allstate's full coverage rate of $2,520 per year. Allstate offers more flexible roadside assistance packages than Geico, but both companies charge a fee for the service, either monthly, annually, or per-use.
Is Geico cheaper than Progressive? ›
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.
What is the GEICO controversy? ›
NEW YORK, Aug 29 (Reuters) - Geico must face a proposed nationwide class action accusing the car insurer of violating customers' privacy by disclosing hundreds of thousands of driver's license numbers to identity thieves looking to collect fraudulent unemployment benefits.
Is GEICO in trouble financially? ›
The insurer later suffered six consecutive quarters of underwriting losses, but has since rebounded by tightening standards and reducing policies in force. Geico earned $3.64 billion before taxes from underwriting in 2023.
What is the GEICO lawsuit about? ›
On March 25, 2021, class claims were filed in California federal court in the Northern District of California San Jose Division, against insurance giant GEICO General Insurance Company (“GEICO”) alleging that GEICO unfairly profited from the COVID-19 pandemic.
Is Geico in trouble financially? ›
The insurer later suffered six consecutive quarters of underwriting losses, but has since rebounded by tightening standards and reducing policies in force. Geico earned $3.64 billion before taxes from underwriting in 2023.
Why does my insurance keep getting more expensive? ›
Car insurance can also keep going up because of factors specific to you that have changed from period to period (like your location, age, claims history, driving record, car make and model, etc.). Keep in mind that car insurance typically increases not right when you make a change but when you renew your policy.
Who is cheaper, Geico or Progressive? ›
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.
