Geico is one of the nation’s largest auto insurance companies, known primarily for low rates offered directly to consumers online and over the phone. If you’re looking for an affordable car insurance policy and you’re comfortable managing your own accounts online when an agent isn’t nearby, Geico might be right for you.
Founded in 1936 as an insurance company for government employees, Geico is now open to all drivers and owned by Warren Buffett’s Berkshire Hathaway conglomerate. In addition to its online and telephone service, Geico has a small number of agents — about 150 nationwide — who sell exclusively for the company.
Here are some pros and cons of Geico:
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Geico auto insurance
Geico’s standard coverage offerings include bodily injury and property damage liability, collision, comprehensive, personal injury and uninsured motorist protection.
Mechanical breakdown coverage is not something every insurer offers, but you can add it for an extra cost with Geico. With the coverage, after a $250 deductible on a covered loss, Geico covers repairs to all mechanical parts of the car, except those caused by wear and tear. Mechanical breakdown coverage is renewable for up to seven years or 100,000 miles.
For as little as $14 a year per car, you can also add emergency roadside assistance coverage, which can help if you have a dead battery, lock yourself out of your car or need gas or a tow.
Rental reimbursement, another optional coverage, helps pay your rental car costs while your car is in the shop as the result of a covered claim.
Auto insurance discounts
Geico offers a variety of discounts, including for safe drivers, for those who take a defensive driving course and for drivers age 50 or over. You can also get a discount if you buy homeowners, renters, condo or mobile home insurance through the Geico Insurance Agency.
Geico’s name stands for Government Employees Insurance Co., and its historical affiliation means savings for active and retired federal workers, who qualify for an 8% discount in most states.
Active or retired members of the military can also save, as can employees of companies and members of professional organizations with which Geico is affiliated — there are more than 500 in all. Other available discounts include:
- Good student: Full-time students with a B average or better could be eligible for up to a 15% discount on certain coverages.
- Multicar: Insure more than one vehicle with Geico and you could get a discount of up to 25% on most of your auto coverages.
- Safety features: You could save up to 25% on personal injury protection coverage if your car has driver-side air bags and 40% if it has full front-seat air bags. Cars with built-in anti-theft systems can earn up to a 25% discount on comprehensive coverage, and cars with anti-lock brakes can earn a 5% discount on collision coverage.
- Clean driving record: If you’ve been accident-free for five years, you could save up to 26% on most coverages.
Other insurance
Geico services about 13 million auto insurance policies and insures more than 22 million vehicles.
Geico also offers motorcycle insurance. Riders may be eligible for various discounts, including for being an experienced rider, taking a motorcycle safety course, insuring more than one bike and switching insurance to Geico.
Other insurance products are offered through third parties, with Geico acting as an agency. Policies available include home insurance, renters insurance, life insurance, and coverage for flooding, pets, all-terrain vehicles, collectibles and boats.
Consumers who like to bundle insurance policies seamlessly may find it problematic to deal with third-party companies as well as Geico.
Customer reviews and ratings
With its ubiquitous commercials reminding that you could save 15% or more with Geico, the insurer bases most of its appeal on its pricing. It’s true that Geico may have better rates than many of its competitors. But what about its customer service?
Geico is in the middle of the pack in Consumer Reports’ rankings of 24 insurance companies for car insurance customer satisfaction. J.D. Power rated Geico’s customer service as “about average.” Among 25 companies J.D Power reviewed, Geico scored just under the industry average.
In online reviews, some customers reported excellent claims service, with attentive follow-up by employees and quick payments, while others were disappointed. In some cases, customers complained that representatives were unhelpful on the phone or that Geico raised their premiums despite clean driving records or charged them a premium that was higher than their initial quote.
Geico enjoys excellent financial strength ratings. A.M. Best gives the company its highest rating, and Standard & Poor’s and Moody’s Investor Services rate the company highly as well.
Website and apps
The Geico mobile app helps you easily keep track of your policy and billing details. It lets you access your Geico policies and a digital auto insurance ID card, pay bills and submit claims. The app’s Fuel Finder helps you find the nearest, least expensive gas station.
The app gets strong reviews. Android users rate it 4.6 of 5 stars, with more than 93,000 reviews. Users of the iPhone gave the newest version 5 stars in 425 ratings.
Geico’s phone number is 800-861-8380.
Next steps
If the price of your auto insurance policy is your main concern, getting a quote from Geico is worthwhile. Remember, it’s always wise to shop around when looking for the best car insurance deal. To help you compare quotes, use NerdWallet’s free rate comparison tool. A typical driver can save an average $859 a year on car insurance simply by comparing estimates.
Juan Castillo is a staff writer at NerdWallet, a personal finance website. Email: jcastillo@nerdwallet.com. Twitter: @JCastilloNerd.
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