GEICO's Auto Insurance Explained
GEICO is a top-tier auto insurance company known for its affordable rates, easy-to-use mobile applications, and accessible customer service. The industry giant provides several convenient methods for policyholders to update or manage their policies. In this article, you'll learn more about GEICO's most popular insurance offerings, discounts, and customer service issues.
GEICO stands for Government Employee Insurance Company. It is the second-largest auto insurance provider in the United States. Their plans are available in all 50 States and the District of Columbia. The insurer covers more than 24 million motor vehicles in the nation.
The company offers affordable insurance products and flexible payment options. They also offer insurance plans that cover homes, apartments, boats, and other places. GEICO’s customer service number is 1 (800) 207-7847.
GEICO Auto Insurance Reviews for 2021
Several financial publications released several GEICO reviews for the 2020-2021 fiscal year. NerdWallet’s editorial team named GEICO to its Best Car Insurance Companies list for 2021. It awarded the company five out of 5 stars based on its overall performance.
The publication bases its insurance ratings using a formula. It considers each company’s pricing, discounts, and ease of filing claims. NerdWallet evaluates the insurer’s transparency on its official website. The publication also considers financial strength, consumer complaints, and other documentation from the National Association of Insurance Commissioners.
WalletHub’s editorial team rated GEICO 4.5 out of 5 stars because of its affordable auto insurance rates. They also praised the company’s intuitive mobile apps and accessible online tools. GEICO also earned a high rating for its numerous policy discounts. The publication docked GEICO a half-star due to customer complaints and the low availability of agents in some areas. Lending Tree’s ValuePenguin awarded GEICO a 4.0 out of 5 stars for its solid insurance rates, industry-leading mobile applications, and good customer service.
Other notable ratings include:
- JD Power: 4.2/5
- NAIC: 1.34
- BBB: A+
- Standard & Poor’s: AA+
- Moody’s: Aa1
Basic Auto Insurance Coverage Offered by GEICO
Most states require drivers to carry basic liability coverage, which pays for injuries and property damage. This coverage also protects drivers when they cause injuries or property damages to another person. GEICO provides the following basic coverage to its members.
Uninsured/Underinsured Motorist Coverage
GEICO provides Uninsured/Underinsured Motorist Insurance as basic coverage for its customers. They offer the following insurance protection.
Uninsured Bodily Injury Insurance – This coverage reimburses you and your passengers for accident-related injuries caused by an uninsured driver.
Underinsured Bodily Injury Insurance – It covers you and your passengers for accident-related injuries caused by an underinsured motorist.
Uninsured Motorist Property Damage – This coverage pays for property damage and car repairs when an uninsured driver crashes into your vehicle.
Underinsured Motorist Property Damage – This insurance protects you when a motorist with insufficient coverage hits your car.
GEICO’s collision coverage will pay for repairs for your car when you get into an accident, even if you’re at fault. Collision coverage will reimburse you for the cost of repairs when you hit another vehicle or object. It means that you can use this coverage whether or not you’re at fault. GEICO doesn’t require you to set a limit for collision coverage. The most money this coverage will pay is the actual cash value of your vehicle. Most lenders and financing companies require this coverage if you rent or lease a vehicle. Collision coverage also pays for the following accidents when your vehicle:
- Hit another automobile
- Hit by another vehicle
- Hits an object like a fence or signs
Another basic coverage that GEICO provides is its comprehensive coverage. Lenders require this coverage for leased or financed vehicles.
Comprehensive coverage reimburses you for damages when you’re involved in an accident that’s not caused by a collision. This coverage also protects your vehicle in theft and vandalism cases. This insurance also protects your vehicle from losses caused by hail, wind, and flooding. It also protects you when you accidentally hit an animal.
GEICO Gap Insurance
The company does not offer Gap insurance coverage as of 2021.
GEICO offers medical payments coverage to help drivers with their accident-related healthcare costs. Some states offer Personal Injury Protection(PIP) instead of medical payments. Local laws determine which coverage is available in your area. They are optional coverage in most states and required in others. It pays regardless of fault for accident-related medical treatment. Medical payments coverage protects you and relatives that live in your home. This insurance also covers passengers in your car. It will pay for accident-related healthcare expenses. These include doctor appointments, hospital visits, medical screenings, chiropractors, and funeral expenses. This coverage doesn’t pay medical expenses for third-parties in other vehicles.
GEICO’s Supplemental Insurance Coverage
You can personalize GEICO’s car insurance policy by signing up for supplemental coverages for your vehicle. Here are a few options the insurer offers to its customers.
GEICO offers this coverage for employees who drive for rideshare companies and delivery services like Uber, Lyft, Amazon Flex, Grubhub, DoorDash, and others. The company says this policy replaces the driver’s personal car insurance policy. This coverage is available in 40 states and the District of Columbia. It allows drivers to cover their personal and rideshare activities. Under this insurance, you’re covered by the same policy whether your app is off or on. Additionally, you’ll only need to manage on auto policy. The company doesn’t offer add-on rideshare policies or extensions. GEICO allows individuals to drive for more than one company.
GEICO’s Emergency Road Service
GEICO offers an Emergency Roadside Assistance Service that users can access through its mobile app. According to the company, members can request help in as little as two minutes. Policyholders can access this service 24/7 and will receive a quick response.
The company can also use the GEICO Mobile app’s GPS locator to help the repairman or tow truck find you. They also offer a service tracker to track when help is on its way to you. You can text ROADSIDE to 43426 (GEICO) to receive a link to download their app.
GEICO provides Rental Reimbursement coverage as optional supplemental coverage. It pays for rental car costs while your vehicle is undergoing repairs because of a covered claim. Customers can keep their rental cars until their vehicle is repaired or they reach their policy's coverage limits. The company only provides a limited authorized rental period for drivers whose vehicle is totaled.
Rental Reimbursement won't pay for fuel, mileage, security deposits, or additional coverage required by the rental company. This coverage is also subject to daily and per claim limits. For instance, if you have a $25 per day/$750 per claim rental reimbursement limit, the company will pay $25 per day, but no more than $750 per claim for your rental vehicle.
Mechanical Breakdown Insurance (MBI)
GEICO Mechanical Breakdown Insurance (MBI) is similar to a car warranty. The car insurer claims it provides better coverage than extended warranties at an affordable price. Their MBI provides the following benefits for customers: It includes all parts and systems, not just select items list covered by dealer warranties.
It charges a small premium for each policy period instead of a large lump sum payment.
Allows you to get your automobile repaired wherever you choose.
Once you purchase MBI, you can renew it for seven years or 100,000 miles (whichever comes first). They require members to pay a $250 deductible for a covered loss. Afterward, the policy covers all car repairs to all mechanical parts. For details, contact (800) 861-8380.
GEICO Non-owner Car Insurance
The insurer offers this policy to individuals who don't own a vehicle but still need insurance coverage. This policy only provides liability coverage. It pays for bodily injuries and property damages that drivers may cause to other people during an accident.
These insurance policies only cover the driver, not the car you may drive. Their average premiums are $200 - $300 per year.
GEICO SR-22 Certificate
GEICO SR-22 is a certificate of financial responsibility. States require select drivers to carry this documentation as proof their auto insurance coverage meets the minimum liability coverage required by law.
FR-44 certificates are similar to SR-22 forms. It proves drivers have an active liability license that meets or exceeds the state's requirements. It has higher liability requirements than the state's minimums or SR-22 minimum coverage. Most people won't need an SR-22/FR-44. States only mandate them in the following situations:
- Reckless driving
- DUI accidents
- Accidents caused by uninsured drivers
To get this coverage, sign up for insurance with the company. When completing the form, select "yes" to the question "Need Certificate of Financial Responsibility or SR-22."
GEICO Accident Forgiveness
GEICO offers accident forgiveness as a benefit to help car insurance rates from rising because of a driver’s first at-fault accident.
The company also sells an Upgraded Accident Forgiveness option that is available in most states. It is only available for purchase at the initial time of the policy’s renewal time. GEICO also provides Free Accident Forgiveness. It offers it as a reward when the policyholder reaches a milestone anniversary and has an excellent driving record. The company contacts policyholders who earn this reward. GEICO’s Accident Forgiveness is only available in a few states.
GEICO Car Insurance Discounts
GEICO provides numerous discounts to its policyholders. They include the motorist's vehicle equipment, driving habits, education, affiliations, and customer loyalty. According to Wallet Hub, the insurer provides more than 15 different insurance discounts that offer savings up to 40 percent. Availability varies by state. Here are the company's most popular discounts. Discounts for Vehicle Safety Features – GEICO provides several discounts based if you have safety equipment in your automobile. These include:
- Air Bags Discount (23 percent)
- Anti-Theft Systems Discount (23 Percent)
- Anti-Lock Brake System Discount (5 Percent)
- Daylight Running Light System Discount (3 Percent)
- New Vehicle Discount (15 Percent)
Driving History and Habits – GEICO provides discounts to drivers who have an excellent driving record and practice good safety habits. They offer the following reductions:
- Five-Year, Accident-Free Good Driver Discount (22 percent)
- Seat Belt Use Discount (Cost Savings Varies)
Education-Based Discounts– The company provides additional discounts to individuals who complete driving education courses. Some locations do not offer these discounts, so please visit GEICO’s main page for more information.
- Defensive Driver Discounts (Discount Varies)
- Driver’s Education Discounts (available for younger drivers)
Discounts for Employment and Membership Affiliations – GEICO also offers discounts to individuals based on their careers.
- Emergency Deployment Discount (25 percent) – It covers U.S. military members that deploy to dangerous zones.
- Military Discount (15 percent) Available to active duty or retired members of the Armed Forces or National Reserves.
- Eagle Discount (12 percent) - This cost-savings is available to federal employees.
- Membership and Employee Discount (Varies) Available for qualifying members of more than 500 organizations and corporations.
Customer Loyalty Discounts – The company has two multipolicy discounts available for customers.
- Multi-Vehicle Discount (25 percent) – Available to customers that have more than one auto insurance policies.
- Multi-Policy Discount (Varies) for individuals that have another policy through their company. These can include homeowners, renters, mobile home, or condo policies.
Student Discounts - The insurer offers the following discounts for full-time students.
- Good student discount - GEICO provides this discount for individuals who earn a 3.0 average or better.
- Good driver discount - The company offers this discount for teens and young adults who haven't been in five years.
- Fraternity, sorority, and honor society membership discounts - GEICO provides savings to individuals in certain organizations.
- Alumni associations, colleges, universities, and student discounts - Offered to members in qualifying groups.
Getting a GEICO Auto Insurance Quote
You can get a free, personalized GEICO car insurance quote. The company requires you to submit the following items:
- A valid driver's license
- The vehicle identification number (VIN),
- The physical address where you store your vehicle.
Once you submit this information, you'll learn about GEICO's coverage options, including the state minimums. You'll also learn about discounts that may be available for you based on your driving habits and member affiliations. Next, you'll receive a personalized rate.
How GEICO Calculates Insurance Rates
The company relies on the law of large numbers, which uses a collective pool of policyholders who share the losses. They use actuaries to assess each customer's potential risks using statistical data. They base an individual’s risk on a combination of higher and lower risk factors. These include a driver’s experience levels, records, vehicle safety features, and locations. Rates can change when you have an improved driving record, additional safety features, or adopt safer behaviors on the road. Unfortunately, the Consumer Federation of California filed legal action against GEICO’s method of calculation in 2015. They claimed the company unfairly targeted low-income motorists with deceptive, inflated insurance quotes. The company paid a $6 million settlement.
Sample GEICO Car Insurance Rates
WalletHub has published sample driver profiles for GEICO car insurance rates. The company received a score of 30 out of 30 for its premiums.
Sample Driver Profiles
- 18-Year-Old: $237 per month
- 21-Year-Old: $91 per month
- 45-Year-Old: $42 per month
- 45-Year-Old with a Speeding Ticket: $63 per month
- 45-Year-Old with a DUI: $101 per month
- 55-Year-Old: $42 per month
- 65-Year-Old: $42 per month
GEICO’s Auto Repair Xpress
The insurer has an Auto Repair Xpress program that helps customers receive priority treatment for their service experience. After you report a claim, you can locate an Auto Repair Xpress facility and schedule an appointment online for repairs.
Submitting GEICO Claims
GEICO’s claim support line is open 24 hours/7 days a week. Customers can file their claims at a time that is convenient for them on their Claims Express page. They offer support by phone and online. The company allows policyholders to track their claims using the GEICO Mobile app. It also has a claims-specific reporting center for glass. It also has an online search engine to help customers find a repair location near their home.
According to WalletHub, GEICO’s claim process has a few issues that have caused customers to lobby complaints. The publication says that the insurer has provided enough tools to help streamline their claims process.
GEICO Payment Plans and Options
The insurer offers several flexible payment options for members to pay off their auto insurance premiums, including paying off the entire bill or using an installment plan. Here are their payment plan options:
Full payment - You’ll make a single payment when your policy comes up for renewal.
Installments - (Two, Three, and Four. Five-installment plans are only available for new policies only. They only allow six-installment plans on renewals and new policies).
You can pay your GEICO bill by phone, mail, or using their GEICO mobile app. The company accepts several payment methods:
- Write an Online Check
- Debit or Credit Card
- Electronic Funds Transfer Debit or Credit Card
GEICO Complaints, Customer Satisfaction, and Industry Reviews
Market research agency J.D. Power released a 2020 customer satisfaction survey about the auto industry shopping. It ranked GEICO as among the best for its insurance products. It ranked it below average for customer satisfaction regarding auto insurance claims.
The National Association of Insurance Commissioner found that customers filed fewer-than-expected complaints to state regulators relative to its size as an auto insurance company. It based this on three years' worth of data.
Official Website: People can submit a claim or make a payment using GEICO’s website. It also has a tool to help users find the nearest gas station or repair shop nearest to their location.
Is GEICO a Good Insurance Company?
GEICO is one of the best insurance companies for auto insurance and other financial products. It is a great choice for drivers who enjoy using technology rather than dealing with an agent. The company discusses most of the policy details over the phone, rather than using agents. You can also use SmartFinancial’s transparent insurance technology to search for a quote and connect with a local GEICO agent in your area within minutes. You’ll only need to fill out a short form that allows you to compare coverages and rates with other companies. Fill out the form on this page to get started.
Get a Free Auto Insurance Quote Online Now.
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