Does GEICO Have the Cheapest Auto Insurance?
Last Updated on August 1, 2020
GEICO is one of America’s biggest and best car insurance companies. Over the years, GEICO has developed a reputation for offering good insurance at a reasonable price.
But does GEICO really have the cheapest car insurance? Is GEICO the cheapest car insurance company in America? Are there better options for people seeking the cheapest possible car insurance? Today, we’re explaining everything you need to know about whether or not GEICO has the cheapest auto insurance.
GEICO is in a “Gray Zone” Between Full-Service Car Insurance Providers and Ultra-Discount Providers
First, let’s make something clear: GEICO typically isn’t the absolute cheapest car insurance provider in the United States. There’s a whole category of ultra-discount car insurance providers that focus on getting you on the road at the absolute lowest price. There’s The General, for example, that focuses on providing some of the lowest car insurance rates for those who just want basic minimum insurance that lets you legally drive.
At the same time, GEICO isn’t the same as full-service insurance providers like State Farm or Allstate.
Instead, GEICO occupies a sort of “gray zone”. The company offers affordably-priced car insurance plans that still come with some features of higher-end plans. GEICO also offers some good add-ons like emergency roadside assistance and umbrella coverage. There’s a happy medium between service and value.
GEICO Offers Discounts You Won’t Find with Other Car Insurance Companies
Another thing that makes GEICO an attractive option is the number of discounts available.
GEICO tends to offer discounts that aren’t available with cheaper providers or full-service providers.
GEICO is known for its safe driver discount, for example, which charges a particularly affordable rate to a driver with a long history of safe driving.
GEICO also offers good student discounts that can help young drivers save a significant amount on the cost of car insurance.
Some are surprised to learn that GEICO stands for “Government Employees Insurance Company”. To this day, GEICO tends to offer discounts to government employees. If you work for the state or federal government, then you may be able to get even cheaper car insurance.
Like most car insurance companies in America, GEICO also offers discounts to members of the military.
GEICO Has Better Claims Satisfaction Ratings than the Cheapest Providers
When you buy car insurance from the cheapest providers, you can expect to encounter problems when you make a claim. These companies are able to offer the cheapest possible car insurance because they avoid paying out a claim whenever possible. Yes, the car insurance lets you legally drive on the road, but stipulations and low coverage limits might prevent you from ever actually recovering money after an incident.
GEICO doesn’t work that same way. GEICO has claims satisfaction ratings that equal some of its larger competitors.
GEICO’s 2017 J.D. Power claims satisfaction ranking, for example, was 4 stars out of 5 in terms of overall satisfaction, placing GEICO within the top five car insurance companies in the United States. This ranking measures how satisfied customers were with the claims process overall, including how easy it was to make a claim and how hassle-free GEICO made the compensation process.
In other words, GEICO offers competitive prices on car insurance without sacrificing value or an efficient claims process.
GEICO Isn’t the Cheapest Option for All Drivers
Remember that every driver is different. GEICO might be the cheapest option for some drivers in some situations, but it’s certainly not the cheapest for everyone.
GEICO seems to offer particularly affordable quotes to drivers with a clean driving record. If you have 7+ years of insured driving history with no claims, for example, then you might be able to get particularly affordable rates with GEICO.
However, if you have one or more at-fault claims or other incidents in the last 7 years, then you might find that GEICO offers more expensive rates than competitors.
For all of these reasons, it’s crucial to request quotes from at least three different insurance companies, including GEICO and its competitors.
If you end up signing up for GEICO and are not satisfied, you can easily switch to a different insurance company. GEICO has no cancellation fees and makes it easy for you to cancel your policy.
So Does GEICO Really Have the Cheapest Insurance?
Ultimately, GEICO doesn’t have the cheapest car insurance in the country. However, it’s one of the best car insurance companies in terms of value: GEICO offers low-cost car insurance plans that have the features of higher-cost plans. You’re not getting the absolute cheapest car insurance policy – like you would when working with a company like The General. However, you’re getting decent coverage at an affordable price.
GEICO isn’t the cheapest car insurance company for all drivers in all situations, however. That’s why it’s important to compare quotes to make sure you’re choosing the right provider based on your unique demographic information.