April 24, 2021

Geico Insurance Review 2021 | NextAdvisor with TIME

Editorial Independence NextAdvisor is not a licensed insurance company, agency or broker and we do…

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GEICO, the second-largest insurance company in America, is a household name thanks to its ubiquitous advertising with the famous claim, “15 minutes could save you 15% or more on car insurance.” It offers a lot more than car insurance, however.

GEICO is a subsidiary of the Berkshire Hathaway conglomerate owned by investor Warren Buffett, the world’s sixth-richest person according to Forbes. It controls almost 14% of the car insurance market and insures nearly 28 million vehicles. It writes policies in all 50 states and the District of Columbia. Besides auto insurance, GEICO also offers policies for homeowners, life insurance, and more. 

GEICO Auto Insurance 

GEICO’s claim that you can save 15% or more is not always accurate because of the natural flux in insurance rate offerings, but in general GEICO’s average rate is almost 20% lower than the national average, based on Bankrate data. It also offers relatively cheap rates for young drivers, who often have to deal with exorbitant rates from other companies.

Types of Coverage

  • Liability coverage (bodily injury and property damage)
  • Comprehensive and collision coverage
  • Medical payments coverage
  • Personal injury protection coverage
  • Uninsured/underinsured motorist coverage
  • Emergency road service
  • Rental reimbursement
  • Mechanical breakdown insurance
  • Motorcycle insurance
  • ATV insurance
  • RV insurance
  • Rideshare and on-demand delivery drivers insurance
  • Collector auto insurance
  • Boats and personal watercraft insurance
  • Mexico auto insurance
  • Commercial vehicle insurance

Cost of GEICO Auto Insurance 

GEICO is known for its low rates. The average annual premium for minimum coverage with GEICO is $363, according to the latest Bankrate data. (Bankrate is owned, like NextAdvisor, by Red Ventures.) For full coverage with GEICO, the average cost is $1,325. Compare that to the average cost of minimum car insurance in the U.S., which is $563 a year and $1,738 for full coverage. Based on those numbers, drivers who choose GEICO save an average of $200 for minimum coverage and an average of $413 for full coverage.

GEICO Auto Insurance Discounts 

GEICO offers the most discounts of all the legacy insurance companies — ranging from 5% to  25% off your auto premium. These are the auto insurance discounts available with GEICO:

  • New vehicle discount
  • Good student discount
  • Defensive driving discount
  • Good driver discount
  • Seat belt use discount
  • Multi-vehicle discount
  • Multi-policy discount
  • Vehicle equipment discounts
  • Driver education discounts
  • Military and public service discounts
  • 50 and older discount

GEICO Home Insurance

GEICO can protect your home and your belongings in case something happens, such as a fire or a burglary. It’s best to review your policy so you know exactly what you’re covered for, but here are common things covered by GEICO homeowners insurance:

Types of Coverage 

  • Property damage from fire, wind, hail and water (under some policies)
  • Personal property such as furniture, clothing, appliances and dishes
  • Jewelry up to $2,000 of value
  • Personal liability
  • Medical bills
  • Additional expenses, like hotel costs if you experience a covered loss

GEICO Home Insurance Discounts

An easy way to save on insurance with GEICO is by bundling your auto and homeowner or renters policies. GEICO also offers other home insurance discounts that you may be able to use:

  • Home security system discounts
  • Sprinkler and smoke alarm discounts
  • Multi-policy discounts
  • Military and federal employee discounts
  • Student discounts
  • Membership group discounts

GEICO Life Insurance 

You can bundle other policies with life insurance through GEICO, but keep in mind that the company does not sell or underwrite its own life insurance policies. Instead, it partners with LifeQuotes, a comparison shopping site that gives quotes from multiple life insurance companies. 

Types of Coverage

  • Whole life insurance
  • Term life insurance
  • Universal life insurance

Cost of GEICO Life Insurance

According to the latest Bankrate data, the average cost of life insurance is nearly $23 per month for a 35-year-old woman looking for a 30-year term policy with a death benefit of $250,000. NextAdvisor pulled a GEICO quote for life insurance coverage starting at $250,000 for a 35-year-old woman who’s healthy, living In California, and looking for term life insurance. For that person, it would cost around $18 a month for 30 years of term life insurance, $12 for 20 years, and $9 for 10 years. 

GEICO Life Insurance Discounts 

Life insurance discounts with GEICO may vary widely since it has partners who sell and underwrite life insurance policies for it. Still, you can take advantage of these:

  • Multi-policy discount
  • Membership and employee discounts
  • Military discounts
  • Federal employee discounts

USAA Ratings, Customer Satisfaction and Complaints 

GEICO is the fifth most popular insurance brand and the most famous, according to a YouGov poll. About 46% of responders report having a positive opinion of the company, 38% have a neutral opinion, and 14% have a negative opinion. GEICO’s ratings and customer satisfaction reviews are mixed across the board. On Best Company, a customer review platform, GEICO has an average review score of 3.6 out of 5 based on 900 ratings submitted in the last five years. Most reviews paint GEICO as mediocre or average as far as customer interaction goes. 

“According to customer review data, GEICO is just slightly behind industry averages,” says Alice Stevens, an insurance expert and senior editor at Best Company.

GEICO’s complaint index rating with the National Association of Insurance Commissioners indicates above average complaints. GEICO has the best A.M. Best rating that’s possible to achieve: A++. That rating expresses an insurer’s financial stability, which influences its ability to pay out claims.   

Below are ratings from leading market researcher J.D. Power. GEICO scored well above average for overall customer satisfaction for auto insurance across the U.S., especially in the North Central and Northwest regions of the country. According to the latest data from J.D. Power, GEICO sits just below the industry average for claims satisfaction, but the company overall still ranks relatively high compared to other insurers.

GEICO Pros and Cons 

Pros

  • Low premium rates

  • Strong financial and industry standing

  • Wide range of insurance options available, making it easy to bundle

  • Partnerships with Mexican insurance companies for Mexico coverage

  • Abundance of discounts available

  • GEICO has a mobile app and a user-friendly website, which gives its customers easy access to information about their products and services and immediate customer support assistance

  • Usage-based app option available (DriveEasy)

Cons

  • Local agents may not be available in your area

  • Certain policies are underwritten by third-party partners, adding a layer of complexity

  • Difficult claims processing: GEICO doesn’t do its own underwriting for certain policies, such as life and homeowners insurance. If you want to file a claim with certain policies (i.e. life, homeowners), you have to contact the company that underwrites them and not GEICO directly, which can be a headache for policyholders

  • No gap insurance coverage

Other Policies Offered by GEICO

People wanting to keep all their insurance policies with the same company will be pleased to know that GEICO offers many types of insurance, plus discounts for bundling. Here are additional insurance policies that GEICO offers:

  • Business insurance
  • Identity protection
  • Jewelry insurance
  • Overseas insurance
  • Pet insurance
  • Travel insurance
  • Umbrella insurance

Bottom Line 

Low rates, a multitude of discounts, and customer-focused online capabilities are some of the  reasons to choose GEICO for your insurance needs. GEICO’s wide range of insurance offerings makes it easy to stick to one company for everything — be it car, life, or home insurance. The rates that GEICO charges are often much lower than what other companies charge, and you can save up to 25% through discounts and bundling. 

One of the most significant downsides with GEICO is that third-party partners underwrite some of its insurance policies, including life and homeowners. That adds a layer of complexity during the claims process for customers. Suppose you want to file a life or homeowners insurance claim. In that case, you have to contact the company that underwrites them and not GEICO directly, which can be a headache for policyholders. 

Regardless, customer reviews show a pattern of appreciation for GEICO’s helpful customer service through its mobile app and telephone operations. Year after year, GEICO’s website continuously receives praise from J.D. Power for its functionality, easy user interface, and quick quote retrievals.

Frequently Asked Questions

Is GEICO a good insurance company?

On the whole, GEICO is a good insurance company. It  has low rates, many discounts and a wide range of insurance products, and  it’s also rated as  financially very stable. Data shows that most people have a positive opinion of GEICO.

Why is GEICO so cheap?

The most obvious attraction to GEICO is the prices. By offering the services only directly to the customers and offering discounts on multiple policies, GEICO can offer substantial discounts over competitors.

Who does GEICO make sense for?

Because of discounts, user-friendly app, and low rates, GEICO mostly caters to people looking for convenience and value. GEICO also makes sense for those looking to bundle policies, as it offers just about everything from homeowners insurance to life insurance and more.