Geico Auto Insurance: 14 Million Policies Nationwide
AutoinsuranceEZ.com Rating:Most people hear the word “Geico” and think of the adorable little British gecko that stars in their national advertising campaign. But the acronym has nothing to do with anthropomorphic reptiles; it actually stands for Government Employees Insurance Company. When Geico was originally founded, their main focus was dedicated to military personnel and other government employees. Today, however, the company is so successful that they are currently underwriting over 14 million different auto insurance policies in all 50 states and Washington, D.C.
Geico Insurance Review
It should come as no surprise that a large, successful company like Geico has a strong reputation for positive ratings. Their financial strength merits the rare A++ rating from AM Best. Likewise, their customer approval ratings are exceptionally high, as you can see in the chart below. Lastly, they have earned an accredited A+ rating from the BBB.
|AM Best Financial Strength Rating (2016)||A++ (Excellent)|
|JD Power & Associates Rating||3 out of 5 (About Average)|
|Complaint Ratio per Vehicle (NJ, 2012)||19 / 809,842|
|Complaint Ratio per Vehicle (CA, 2011)||2 / 356,860|
|Better Business Bureau (2016)||A+|
Geico Insurance Discounts
One of the reasons that Geico’s customer approval rates are so high might have to do with the discounts they offer. Looking at the list below, it appears as if there’s a little something for everyone, especially those affiliated with the military or other federal employment:
|Discount Type||Discount Amount|
|Air Bag Installation||Up to 40% on Medical Payments or PIP|
|Anti-Lock Brake System||Up to 5% on Collision coverage|
|Ant-Theft System||Up to 25% on Comprehensive coverage|
|Daytime Running Lights||1%|
|Accident-Free for 5 Years||Up to 26%|
|Seat Belt Usage||Up to 15% on Medical Payments or PIP|
|Defensive Driving Courses||Varies by State|
|Good Students||Up to 15%|
|Emergency Deployment||Up to 25%|
|Military Affiliation||Up to 15%|
|Federal Employee or Retired||Up to 8%|
|Multi-Car||Up to 25%|
Geico Auto Insurance Options
Geico offers its customers the standard automotive insurance coverages that most would expect from such a well-established company:
- Liability (Bodily Injury and Property Damage)
- Medical Payments/No-Fault/PIP
- Uninsured Motorist Coverage
- Emergency Road Service
- Rental Reimbursement
- Mechanical Breakdown Coverage
- Underinsured Motorist Coverage (in states with a legal requirement)
While drivers are free to pick and choose which optional coverages to add to their policy, it does not appear as though Geico offers any additional, less traditional forms of coverage (such as pet insurance, for example). This could potentially dissuade customers with vehicles that have very specific insurance needs.
Comparing Geico Insurance Quotes
Comparing quotes between companies isn’t the only useful step towards getting the best deal. In certain situations, it also helps to compare different driver profiles within a single company, as we’ve done for you in the chart below.
Now remember that these are only estimates and cannot be guaranteed, but they are insightful. The senior couple in the chart above is clearly benefiting from the fact that one or both drivers on their policy are retired. And, like many other insurance companies, Geico charges higher rates for younger drivers. The difference in price, however, does not seem to be as broad as you may see from other insurers.
Pros and Cons of Geico Insurance
|Great savings available for military and government employees||Some customers are dissatisfied with their slow claims processing experience|
|Large Selection of Discounts and Benefits||Fairly standard coverage options|
It seems clear that Geico would not be as successful as it is today if it hadn’t been doing something right all these years. That being said, Geico is one of many major providers which has built success on insuring “preferred-risk” drivers – drivers who consistently pay their premiums on time and who rarely, if ever, file claims. Anyone who falls outside of this preferred-risk group may have trouble finding affordable coverage from Geico, or they may be rejected outright. And it seems as though some customers who do end up filing claims have had a dissatisfying experience with the company.
But if you really want to know whether Geico is the best option, you’ll need to compare them to other providers near you. Our handy quote generator can get you fast, free quotes in a matter of minutes. And that knowledge can add up to some powerful savings.
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