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? ›
Increasing Car Repair Costs
Expensive cars like luxury vehicles and high-end sports cars — those with higher repair costs to begin with — were always pricier to insure. But now that repair costs have increased across the board, insurance companies have begun to quickly hike rates to keep up.
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.
Is Progressive cheaper than 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.
Who is more expensive GEICO or Progressive? ›
Both Geico and Progressive offer competitive average premiums for drivers, but if cost is your primary consideration, Geico has the edge. Its average rates tend to be lower than the average rates offered by Progressive, and the company's extensive discount list may help you save even more.
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.
Will insurance rates go down in 2024? ›
2024 Auto Insurance Increases Will Hit You Hard! Full coverage costs $212 a month on average, while liability-only coverage costs $103 a month. That prices out to $2541 and $1238 a year, respectively. In 2023, the average price of full-coverage car insurance across the country went up by 24%.
Are insurance rates going up in 2024? ›
The firm's Home Insurance Projection Report foresees a 6% rise in annual premiums in 2024. The increase will put the national average at $2,522 at the end of the year. With climate experts expecting a devastating hurricane season, home insurance costs are forecasted to surge even higher in 2025.
Less driving during the pandemic contributed to Geico's "loss ratio," or percentage of premiums paid to cover claims, falling in 2020 to a 13-year low. The insurer later suffered six consecutive quarters of underwriting losses, but has since rebounded by tightening standards and reducing policies in force.
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.
Why is my car insurance suddenly so high? ›
Car insurance rates can change based on factors like claims, driving history, adding new drivers to your policy, and even your credit score.
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.
