Who’s GEICO Auto Insurance For?
Founded in 1936 as an insurance provider for federal employees and select enlisted officers, GEICO expanded its market reach over the decades, becoming a household name. While still offering a military discount to eligible policyholders, staying true to its roots, the insurer now insures more than 24 million autos and is the second largest auto insurer in the nation.
- Who’s GEICO Auto Insurance For?
- GEICO Vehicle Insurance Policy Types
- GEICO Auto Insurance Policy Options
- Available Discounts and Tips on Getting the Best Rates
- GEICO Auto Insurance Coverage Selections
- Other Related Insurance Types Offered by GEICO
- Customer Service
- Claims Support
- Consumer Ratings
- Pricing and Value
- Customer Support
- Final Thoughts
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GEICO Vehicle Insurance Policy Types
GEICO provides insurance options for several types of vehicles and is among the national insurers leading the way in providing coverage for rideshare applications. Almost any type of personal vehicle you have in your garage, driveway, or even anchored can be insured with GEICO.
- Auto: Insuring personal cars, trucks, and SUVs is GEICO’s specialty, helping the insurer to become the second largest auto insurer in the US. Specialized insurance for classic cars is available as well.
- Motorcycle: Vehicles with two wheels can often find an attractive rate with GEICO.
- ATV: Your three- and four-wheel all terrain vehicles can also be insured with GEICO, making it easier to keep all your policies with one insurer.
- RV/Camper: RV owners can find complete coverage with GEICO.
- Boat/Personal Watercraft: GEICO insures vehicles that float as well.
- Ridesharing (Uber/Lyft): GEICO was among the first of the national auto insurers to address the insurance coverage needs of rideshare drivers. Now, with specialized policies available, rideshare drivers can rest easy knowing they are covered before, during, and after the ride.
GEICO Auto Insurance Policy Options
- Liability: Liability coverage insures you against damage caused by you or an insured driver on your policy. Both medical liability and property damage liability are covered up to selected limits. This coverage is required for vehicles in all states except New Hampshire, but minimum coverage amounts vary by state.
- Collision: Coverage for damage caused by hitting another vehicle or a stationary object will be covered by collision damage, less a deductible if one is chosen. This coverage is not mandatory, but is required by most lenders.
- Comprehensive: Comprehensive coverage protects against damage caused by fire, theft, vandalism, hitting a deer or other animal, falling branches, and other perils. Often, a deductible is used with this coverage, which is optional for most policies unless required by a lender.
- Medical: As insurance is governed at the state level, provisions for medical coverage for injuries due to an automobile vary by state.
- Road Service: GEICO offers roadside assistance to policyholders as an optional policy add-on.
- Mechanical Breakdown Insurance: Differentiating itself from many major auto insurers, GEICO offers mechanical breakdown insurance, which can reduce your out-of-pocket costs for unexpected repairs. This optional add-on may appeal to owners of vehicles out of warranty.
Policy Options Rating: 5 Stars
Available Discounts and Tips on Getting the Best Rates
- Vehicle Safety: As expected, GEICO offers discounts based on the safety features of the vehicle. This discount may show as an impressive number on your premium statement, but most modern vehicles will earn most of the vehicle safety discounts available.
- Military Discounts: GEICO does offer a military discount for eligible policyholders as well as for certain other groups. Many major insurers do not offer a military discount, but may have provisions for reduced premiums while deployed.
- Multi-car discount: Having more cars on a policy creates a discount on each car. As this discount is percentage-based, vehicles with higher premiums will typically see the highest savings in premiums.
- Multi-policy discount: Insuring your home with GEICO can save you money on your auto insurance policy. GEICO offers a multi-policy discount on an auto policy for customers who also purchase renters insurance, homeowners insurance, condo insurance, or mobile home insurance through GEICO.
- Accident free discount: GEICO rewards safe drivers with an accident free discount after five years. Some other insurers begin to reward claims-free drivers after as little as three years, placing GEICO slightly behind in this regard, but competitive with some other national insurers.
- Good Student Discount: Families with young drivers can save on auto insurance with evidence of good grades. High school and younger college students are eligible.
- Driver’s education: Driver’s education courses, a part of the curriculum in many high schools, can earn additional discount for young drivers on the policy.
- Defensive Driving Certification: Regardless of age, drivers who have completed an approved defensive driving course are eligible for an additional discount by providing the completed course certificate.
Many competitors now offer an additional discount for good driving as measured by a mobile app or a device that connect to the vehicle’s on board diagnostics. At this time, GEICO does not offer a similar discount for private passenger auto policies. Available Discount Rating: 4 Stars
GEICO Auto Insurance Coverage Selections
Important Coverages and Considerations
- Liability: Liability coverage exists in two separate parts of a GEICO auto insurance policy, and covers bodily injury liability and property damage liability. Coverage amounts for each type of liability can be selected by the consumer, subject to state limits. While some states offer minimum limits as low as $15,000 per person for bodily injury liability and $5,000 for personal property liability, many consumers choose limits higher than the state minimum to reduce their personal financial exposure. Actual liability in an at-fault accident can easily exceed these low limits.
- Collision: Collision coverage, which covers damage to the vehicle due to impact with another vehicle or stationary object, is an optional coverage. However, nearly all newer vehicles insured by GEICO carry this coverage. Consumers can often reduce the cost of collision coverage by choosing a higher deductible, but in the event of a claim, the deductible amount is real money which must be paid toward repairs by the insured.
- Comprehensive: If collision coverage provides insurance for damage from crashes, you can think of comprehensive coverage as providing insurance for damage from almost anything else that might happen to a vehicle. Glass damage, fire, theft, vandalism, and other covered perils all fall within the coverage provided by comprehensive insurance. In most cases, deductibles can be adjusted to save money on premiums. Be aware that the savings from a higher deductible on comprehensive coverage is not as high as the savings available by choosing a higher deductible on comprehensive insurance.
- Medical: The medical provision of a GEICO auto insurance policy is intended to pay toward your medical costs if you are injured by an automobile. Because insurance is governed at the state level, each state has its own rules regarding how insurance can be structured and the medical coverage on an automobile policy is the area where state rules diverge the most. Your coverage selection for the medical coverage on your auto policy can create large out-of-pocket expenses if you are injured by an automobile and the selections on your policy aren’t well-matched to your individual needs. This is one area in which having a local agent to help review your coverage needs would be beneficial. If choosing GEICO for your auto insurance, because agents are less plentiful than with other insurers, be sure you fully understand your policy coverage in this area.
Other Related Insurance Types Offered by GEICO
A discount can be earned by GEICO Auto Insurance customers who also purchase a home insurance product from GEICO. Several other types of insurance or available through GEICO. Even if not eligible for a multi-policy discount, some consumers may prefer to consolidate their insurance purchases with one insurer. Some additional Insurance types may not be underwritten by GEICO, but provided by affiliated companies instead. GEICO also offers:
- Home insurance
- Life insurance
- Business insurance
- Commercial auto insurance
- Flood insurance
- Motorcycle, boat, or ATV insurance
- Pet insurance
- Jewelry or personal articles insurance
Completeness of Line Rating: 4 Stars
- Agencies: GEICO does have agents, but much fewer than major competitors. A zip code search in a well-populated suburb of Philadelphia found only one agent within 20 miles.
- Website: In lieu of a large agent network, GEICO provides a state-of-the-art website where customers can manage policies, make payments, or reach out for support through email or live chat with GEICO representatives.
- Mobile App: Geico’s highly rated mobile app parallels much of the same functionality available through their website. GEICO customers can submit a claim, check on policy details, view their insurance ID cards digitally, or even request road service or through the app.
Customer Service Rating: 4 Stars
GEICO ranked “about average” for overall customer satisfaction in J.D. Power’s 2016 Auto Claims Satisfaction Study. Auto insurance claims are an area where the slightest delay can leave customers inconvenienced, and as such, can easily generate negative reviews. An average rating in this light seems forgivable. However, the possibility of claims are what we pay for each month and we, as consumers, expect an exceptionally smooth process. Claims can be placed by phone, online, or through the mobile app. If you are fortunate enough to have a GEICO agent nearby, they may also be able to assist, but claims are handled entirely by the claims department and agents are only able to get you started with the process. Claims Support Rating: 4 Stars
A 2016 JD Powers study ranking US auto insurers overall customer satisfaction found New York Region customers to be most pleased with the insurer, ranking GEICO 1st in the rating. North-Central region customers were not quite as enamored, ranking the insurer 9th. http://www.jdpower.com/press-releases/2016-us-auto-insurance-study A.M. Best Rating: A++ http://www3.ambest.com/ratings/entities/CompanyProfile.aspx?AMBNum=2204&AltNum=&URATINGID=288320
Pricing and Value
GEICO Auto Insurance has gained a reputation for being less expensive than some major competitors. Due to the number of rating factors used in rating a risk, a customer, premium costs can vary significantly from one customer to the next, On average, the insurer does a good job of living up to the low-cost reputation it has earned. Keeping its focus on centralized service centers and utilizing technology to assist customers and bind policies, GEICO eliminates much of the cost associated with a large agent network. For many customers, this structure works just fine. Customers needing more personalized attention may be better served with another insurer if they do not have a GEICO agent nearby. Pricing & Value Rating: 5 Stars
GEICO has fully embraced the current technology available to connect with customers, but at the expense of a larger agent network. For some customers, this structure fits their needs and helps them to save money. Other customers may be missing the personalized service and guidance that comes with having a local agent available to explain coverages and discuss areas in which you may be over-insured or underinsured. Customer satisfaction with GEICO varies widely depending upon region which may suggest that either some regions have competitors that outperform GEICO, or that GEICO customer service experience is not universal nationwide. Overall Rating: 4.33 Stars