How Much Does an Average GEICO Auto Insurance Policy Cost?
Last Updated on August 15, 2022
GEICO is America’s second-largest car insurance company. With millions of customers across the United States, GEICO is known for offering some of America’s cheapest auto insurance prices.
The average GEICO policyholder pays around $1,378 per year for car insurance, which is around $70 per month lower than the nationwide average of $1,450 per year.
How much should you be paying for GEICO car insurance? How much does the average GEICO policy cost? Keep reading to discover everything you need to know about GEICO auto insurance today in our review.
Table of Contents:
- Average GEICO Policy Cost
- GEICO Is One of America’s Cheapest Car Insurance Companies
- Factors that Impact the Cost of GEICO Car Insurance
- GEICO Auto Insurance Discounts
The Average GEICO Policy Costs Around $1,378 Per Year
On average, a GEICO policyholder in the United States will pay around $1,378 per year for full coverage car insurance, according to sample rates provided to our model driver profiles in all 50 states.
However, GEICO premiums vary widely from state to state – and even from ZIP code to ZIP code.
For example, someone living in downtown New York pays different rates than someone living in rural Iowa, and someone living in a big city pays more than someone living in a small town.
State insurance laws also cause prices to fluctuate wildly. Some states have strict insurance requirements and high minimum coverages. Other states do not. That’s why on average, GEICO policyholders in Michigan pay over $2,000 per year for car insurance while GEICO policyholders in Idaho pay less than $1,000.
However, after accounting for all of these factors, the average GEICO policy costs around $1,378 per year across the United States. Most GEICO policyholders fall close to this price, with some drivers paying significantly more and others paying significantly less.
GEICO Is One of America’s Cheapest Car Insurance Companies
According to our research and most market studies, GEICO is one of America’s cheapest overall car insurance providers.
USAA tends to be the cheapest car insurance company in all 50 states. However, USAA membership is restricted to military personnel and their families.
Then, State Farm and GEICO are both priced at around $1,378 per year, on average, across the United States, making them the second and third cheapest car insurance companies in the United States.
USAA tends to be the cheapest in all states. In some states, GEICO is the second cheapest. In other states, State Farm is the second cheapest.
Some states also have cheap car insurance with Allstate, Nationwide, Progressive, Liberty Mutual, and local insurers.
Factors that Impact the Cost of GEICO Car Insurance
GEICO car insurance premiums vary widely based on many factors, including driving history, location, state insurance laws, and more.
Here are some of the biggest factors that determine the cost of your GEICO car insurance policy:
State Insurance Laws: Some states are no-fault states. Others are tort law states. Some states have strict and high insurance requirements. Other states have no insurance requirements whatsoever. Some states require personal injury protection, while others do not. Based on all of these changing state insurance laws, you could pay significantly more or less for your GEICO auto insurance policy.
Driving History: Your driving history is the difference between paying $1,000 per year for GEICO auto insurance and $3,500 per year. Someone with a DUI and an at-fault accident on their driving record, for example, will pay more for auto insurance than someone with 15+ years of clean driving.
Discounts: GEICO, like all major insurers, offers dozens of discounts. You could save hundreds per year on car insurance by taking advantage of these discounts. Drivers with multiple vehicles on their policy, multiple types of insurance products, good student discounts, low mileage discounts, and other perks will pay less for car insurance.
Location: Your ZIP code and address impact car insurance premiums. Across the United States, drivers in cities tend to pay more for car insurance than drivers in rural areas. Statistically, cities tend to be more densely populated and have higher accident rates and crime rates. Some ZIP codes also have higher accident rates and crime rates than others, which is why you might pay more or less in specific parts of the city than in others.
Vehicle Type & Safety Rating: Some vehicles are less risky to insure than others. Minivans tend to be the cheapest cars to insure, for example, because they have strong safety ratings and tend to be driven more safely than, say, a sportscar. GEICO considers your vehicle type and safety rating when calculating car insurance premiums.
Age & Gender: Demographic factors play a role in the average price of GEICO auto insurance. Drivers who are older and more experienced tend to pay lower rates than younger and less experienced drivers. Young men pay more for car insurance than young women, while older men pay lower rates than older women. GEICO, like all insurers, considers age and gender when calculating premiums.
Credit Score: GEICO uses credit scores to calculate car insurance premiums in most of the United States. Three states (Massachusetts, Hawaii, and California) ban insurers from using credit scores to calculate auto insurance premiums. In all other states, however, GEICO considers your credit score when assessing rates. Drivers with a low credit score or no credit score pay more for auto insurance than drivers with a good credit score.
Car Insurance Coverages and Limits: Some GEICO policyholders buy minimum liability insurance that allows them to legally drive on the road while providing little other coverage. Other GEICO policyholders buy full coverage car insurance with all of the bells and whistles. Some have $50,000 of liability coverage, while others have $2 million. Based on your coverages and limits, you could pay significantly more or less for car insurance with GEICO.
Based on all of these factors, GEICO could charge significantly more or less for car insurance.
GEICO Auto Insurance Discounts
Like all insurers, GEICO offers a range of discounts. You can save hundreds per year on car insurance by taking advantage of these discounts. Some drivers even save thousands.
Some of the best discounts available through GEICO include:
- Multi-policy discounts
- Multi-vehicle discounts
- Good student discounts
- Low mileage discount
- Good driver discount
- Federal employee discount
GEICO also offers discounts for safety features, driver education courses, airbags, anti-lock brakes, and more.
Final Word – GEICO Insurance Cost
GEICO is one of America’s best-known car insurance companies. They provide competitive rates across the United States. And, with average premiums of around $1,378 per year for full coverage car insurance, they’re the second or third cheapest insurer in the country.
Contact GEICO or request a quote today to see how affordable your GEICO auto insurance policy could be.