Can You Really Save 15% By Switching to GEICO?
Last Updated on February 14, 2022
You’ve seen the GEICO commercials for years: 15 minutes could save you 15% or more on car insurance. But can you really save 15% when you switch to GEICO? Or is this just another catchy marketing slogan that fails to live up to the hype?
Today, we’re exploring whether or not you can really save 15% on car insurance by switching to GEICO.
You Can Save a Lot of Money By Switching to Any New Car Insurance Company
First, let’s make one thing clear: comparing car insurance quotes is always a good idea. You may be able to save hundreds by switching to a new car insurance provider – even when that provider is offering an identical policy to your old company.
GEICO famously advertises its own promotion, but other American car insurance companies advertise similar savings – just in a different way:
- GEICO claims “15 minutes could save you 15% or more on car insurance)
- State Farm claims drivers may be able to save up to $500 by making the switch
- Progressive claims new customers can save as much as $550
- Liberty Mutual says getting a quote online could save you up to 12%
- Allstate claims the average driver saves $400 a year by making the switch, including savings of $473 if switching from GEICO
All of these companies are competing for your business. They all advertise huge savings to drivers who make the switch. GEICO just has the catchiest slogan.
GEICO Insurance Rates vs Other Insurance Companies
How do GEICO’s rates compare to other insurance companies? View the table below to see the average annual premiums for the major auto insurance companies in the US.
| Insurer | Avg Premiums with Clean Record | Avg Premiums with Speeding Ticket | Avg Premiums with Accident | Avg Premiums with Bad Credit | Avg Premiums with DUI |
|---|---|---|---|---|---|
| Allstate | $1,880 | $2,212 | $2,673 | $3,025 | $3,252 |
| American Family | $1,391 | $1,497 | $1,684 | $2,277 | $1,726 |
| Farmers | $1,682 | $2,099 | $2,446 | $2,669 | $2,640 |
| GEICO | $1,168 | $1,510 | $1,802 | $1,855 | $2,958 |
| Nationwide | $1,864 | $2,263 | $2,766 | $2,549 | $4,011 |
| Progressive | $1,373 | $1,803 | $2,324 | $2,308 | $1,793 |
| State Farm | $1,234 | $1,375 | $1,487 | $2,745 | $1,681 |
| Travelers | $1,267 | $1,721 | $1,842 | $2,095 | $2,430 |
| USAA | $885 | $1,041 | $1,229 | $1,653 | $1,683 |
| Data Source - US News |
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Compare Insurance Quotes After Major Life Events and Changes
Many insurance experts recommend comparing insurance quotes after major life events. Major life events – like getting married or getting a promotion – can have a significant impact on car insurance prices.
Whether you’re requesting a quote from GEICO or any other company, you can save money by making the switch after major life events.
As an example, certain companies – like GEICO – offer a discount to certain government employees. If you were recently hired by a government organization, then you may be able to save money by making the switch to GEICO.
Some of the major life events can include:
- Change of marital status, including getting married or separating from your partner
- Purchase of a home (status as a homeowner instead of a renter can affect premiums, and homeownership opens up bundling opportunities)
- New drivers in your household (like your 16-year-old son getting his first license)
- Changes in education (a college degree might lower your rates)
- Changes in employment (a new job might have a shorter commute)
- Changes in credit score (higher credit scores mean lower insurance prices)
- Changes in needs and risk aversion
- Getting older (once you reach age 25 and higher, insurance rates should drop significantly)
All of these life events can significantly affect car insurance prices. If you want to save 15% or more on car insurance from GEICO, then you may want to compare insurance prices after the above events.
If you do end up switching to GEICO, are not satisfied, and want to switch back to your previous insurer, don’t worry! GEICO doesn’t have any cancellation fees and makes it easy to switch to a new insurance company mid-policy.
How Much Can You Save by Switching to GEICO?
The average driver in the United States pays about $850 per year for full coverage car insurance.
Based on that number, GEICO is claiming an average driver can save around $130 or more by making the switch to GEICO.
It’s true: GEICO is the cheapest car insurance company in certain states. In fact, most reports suggest that GEICO is the cheapest car insurance company in the majority of US states.
One study from Insurance.com, for example, showed that GEICO was the cheapest car insurance company in every state except for Alaska, Iowa, Kansas, Maryland, Missouri, North Carolina, North Dakota, Nebraska, New Jersey, Rhode Island, Texas, Virginia, Washington, and Wyoming. If you don’t see your state on the above list, then you might be able to save a significant amount by switching to GEICO.
How to Save 15% or More on Car Insurance with GEICO
Want to maximize car insurance savings? Whether you’re searching for quotes from GEICO or any other car insurance provider, here are some tips to maximize savings:
- Compare car insurance quotes at least once a year.
- Compare car insurance quotes after major life events, like starting a new job, moving to a new home, or getting married.
- Maintain a good credit score.
- Ask for discounts from your car insurance company.
- Choose a high deductible if you can afford it.
- Don’t buy comprehensive or collision coverage if your car is more than 10 years old or is worth less than $3,000.
- Shop around for roadside assistance coverage. You don’t always have to buy it from your auto insurer.
Conclusion: Yes, You Can Save 15% by Switching to GEICO or Any New Car Insurance Company
All American car insurance companies are competing for your business. GEICO, Allstate, State Farm, and other major insurance providers advertise big cost savings for drivers who make the switch.
GEICO’s catchy “15 minutes could save you 15% or more” promotion could be accurate – especially if you’ve recently experienced a major life event or change.
Insurance prices vary widely between car insurance companies. It’s never a bad idea to compare car insurance quotes online. It costs you nothing – and, like GEICO says, you could save 15% or more in just 15 minutes.
