Geico is so expensive because car insurance is expensive in general, due to rising costs for insurers. But at $462 per year, the average Geico car insurance policy is actually cheaper than coverage from most competitors. In fact, Geico is one of the cheapest car insurance companies nationally.
Even though Geico offers cheaper-than-average rates, its premiums can get expensive for drivers with certain characteristics. For example, teenagers pay an average of $1,544 per year for Geico insurance, compared to $462 per year for older drivers. Additionally, drivers who recently had an at-fault accident pay an average of $826 per year for Geico coverage, which is 79% more than drivers with a clean record.
Factors That Can Make Geico Insurance More Expensive
- Being a young or inexperienced driver
- Purchasing a full coverage policy versus minimum coverage
- Causing an accident or being convicted of a moving violation
- Living in a high-risk ZIP code
- Driving an expensive vehicle
- Having a poor credit-based insurance score
If you're having trouble affording your Geico insurance, there are ways for you to lower your premium. For example, you can take advantage of Geico discounts or reduce your coverage.
In some cases, it might be better to switch insurers altogether. It's usually a good idea to compare quotes from at least three different insurers to see if you can find a better deal elsewhere. Each insurer uses its own algorithm to calculate premiums, so even if Geicois charging you a high premium, you may be able to find a cheaper policy with another insurance company.
To learn more, check out WalletHub's Geico insurance review.
This answer was last updated on 03/08/24 and it was first published on 10/18/23. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
FAQs
The reasons are many and include lingering inflation, the rising cost of repairs, an uptick in severe weather and the number and severity of accidents. Even though rates are on the rise, you don't have to break the bank to pay your premiums.
Why is my GEICO insurance all of a sudden so much higher? ›
Geico may have raised your rates because of changes to your policy or circ*mstances. Examples include adding a new type of coverage, becoming eligible for an additional type of discount, being involved in an accident, or buying a new car.
Why is auto insurance so expensive in 2024? ›
Since insurance rates are determined with risk and historical data in mind, the high financial risk insurance companies and reinsurance companies take on in both states is likely a driving factor of these high premiums.
Is GEICO overcharging? ›
March 12 (Reuters) - Geico, the car insurer owned by Warren Buffett's Berkshire Hathaway (BRKa. N) , opens new tab, will not face class-action claims as it defends against a lawsuit alleging it overcharged policyholders early in the COVID-19 pandemic, a federal judge ruled on Tuesday.
How do I lower my car insurance with Geico? ›
Factors that influence reduced car insurance premiums include maintaining a clean driving record, bundling policies, adopting safe driving habits, having low annual mileage, installing anti-theft devices or safety features in your car, having a good credit score, and choosing the right type of vehicle.
Is Progressive cheaper than Geico? ›
Key Takeaways: Geico is best for you if you're simply looking for the cheapest option, as the provider has a cheaper average rate estimate in 82% of states across the U.S. Progressive is best for you if you're looking for more coverage options, add-ons and customizations.
Who has the most affordable car insurance? ›
Among nationally available providers, USAA offers the cheapest minimum liability car insurance at 46% below average. If you don't have any military affiliation, Geico will be the most affordable option.
Did Geico increase rates? ›
Across the country, Geico increased its average auto insurance premiums by 25.9% from 2022-2023.
Why is my Geico quote so high? ›
If you leave out information in the quoting process about accidents you've been in (even minor ones), your policy rate may be higher. If you forget to provide details about your significant others' driving history, such as speeding tickets, this may lead to a higher rate.
Why did my car insurance go up if nothing changed? ›
Why did my car insurance go up when nothing changed? Your car insurance may have increased this year due to various factors, including inflation, higher repair costs and an increase in auto thefts in your area.
The most substantial reductions in auto insurance rates typically come as teen drivers get older, usually when they hit 18 or 19 years old. Rates continue to decline as you age, particularly once drivers pass the age of 25.
At what age is insurance most expensive? ›
Young drivers ages 16 to 24 tend to have the most expensive car insurance. Drivers in this age group are often inexperienced and are more likely to get into car accidents and file insurance claims. As a result, car insurance companies often charge higher premiums to young drivers.
Is GEICO in trouble financially? ›
Geico generated an underwriting profit of $3.6 billion last year, compared with a loss of $1.9 billion in 2022. But that higher profit came at a cost. Geico had the largest decline in market share among the top 10 U.S. auto insurers. It appears to have shed unprofitable business.
Is there a class action lawsuit against GEICO insurance? ›
Geico must face California class action claiming it overcharged on car insurance. Oct 31 (Reuters) - A federal judge on Monday said a lawsuit accusing Geico Corp of overcharging more than 2 million California policyholders on car insurance early in the COVID-19 pandemic may proceed as a class action.
Did GEICO raise prices? ›
Across the country, Geico increased its average auto insurance premiums by 25.9% from 2022-2023.
Will car insurance rates go down in 2025? ›
Since 2023, car insurance rates have surged 26%, and they'll likely remain elevated until 2025, according to Bankrate's True Cost of Auto Insurance Report. The report determined the annual cost for full coverage car insurance in 2024 to be $2,543, compared to $2,014 in 2023 and $1,771 in 2022.
Why are car insurance rates increasing? ›
This could include reasons like increased claims in your area (due to more extreme weather damage, more accidents, etc.) and higher car repair and replacement costs.
