Finding affordable auto insurance prices can be difficult depending on a number of reasons. One question that I keep on hearing everywhere especially on Reddit is why is GEICO so cheap? This is a hard question to answer because it is assuming that GEICO is cheap for everyone.
With that said, I personally use GEICO because I was able to get better rates with them than any other company, but I know some people who were able to get better rates with Progressive or State Farm. It all depends. What might be cheaper for someone else might not be cheaper for you.
GEICO could save you money
We’ve all heard the slogan “15 minutes could save you 15% or more on car insurance.” This is true. I personally was able to save over 15%, but you have to remember that you can save with any insurance provider. This is why it is important to shop around and get quotes.
Where you live matters
Here in Florida, although not definitively, on average GEICO offers the best insurance rates. I’ve noticed that compared to other cities Fort Lauderdale is more expensive for car insurance. However, with GEICO I know many people who were able to cut their insurance cost in half by switching to GEICO. Once again, where you live matters, Louisiana, Florida, Oklahoma, Michigan, Washington D.C., and West Virginia are among the most expensive places for auto insurance. If you happen to live in these areas, then look for rates to be slightly higher. Depending on where you live, some insurance companies might give you a better insurance deal.
GEICO cuts the cost.
There are many differences between State Farm and GEICO. GEICO is not your average car insurance provider. Companies such as State Farm and Allstate will have many local offices near you. State Farm sells a good majority of their insurance products through local agents. Companies such as GEICO or Esurance excel at selling their policies online. You will most likely not find many local GEICO offices near you. GEICO is able to cut the cost of insurance because they have less agents, local offices in major cities, etc. There are various different ways that GEICO saves money which allows for cheaper premiums for their policyholders.
Every insurance service structures their rates differently.
There is no denying this. Some insurance carriers are going to be more expensive than others. Also, some are going to be more affordable than others. Unfortunately, our mindset is the more expensive the better. While this does possess some truth, this is not entirely true.
You can choose an expensive insurance carrier that does not perform well in claims. You don’t have to be afraid of GEICO not performing well due to their price. In the 2017 U.S. Auto Claims Satisfaction Study GEICO scored above average with four out of five Power Circles in overall satisfaction.
GEICO was 7 spots away from first place. This reveals that on average GEICO customers have an awesome claims experience. GEICO rated higher than State Farm, Allstate, Safeco, and a few other popular names in the insurance industry.
Make sure that you choose the right coverages.
GEICO offers a convenient coverage calculator to help you to find the appropriate level of insurance coverage for you. Their educational tool helps beginners to find out how much coverage they need and the appropriate deductible level they should choose. With this tool, all you have to do is tell them a little about yourself and you will be ready to go.
Decide whether you need full coverage or just liability. I’ve used GEICO for full coverage auto insurance and I’ve also used GEICO for liability and I’ve never had an issue. Check to see your state’s minimum car insurance requirements. For example, in Arkansas the minimum insurance requirements are $15,000 bodily injury liability per person, $30,000 bodily injury liability per accident, and $10,000 property damage liability per accident. In Georgia, the minimum insurance requirements are $25,000 bodily injury liability per person, $50,000 bodily injury liability per accident, $25,000 property damage liability per accident. In Hawaii, the minimum insurance requirements are $20,000 bodily injury liability per person, $40,000 bodily injury liability per accident, $10,000 property damage liability per accident, $10,000 personal injury protection.
Rates will always differ
No one pays the same rate for auto insurance. On average, insurance for women is cheaper than for men. Your age has a lot to do with how much you will be paying for auto insurance. Drivers over 30 pay significantly less on insurance than drivers under 25. The make and model of your car also factors into how much you will be paying on auto insurance. Don’t expect to be paying less if you need to insure a sports car over someone who is insuring an old Honda. Being a homeowner is extremely beneficial as well. Every insurance company allows you to save when you bundle insurance packages such as your home and auto insurance. However, many companies might give you a discount for simply owing a home. Make sure that you know all the discounts that you are eligible for.
GEICO discounts
Military discount – GEICO offers discount auto insurance for military personnel. Whether you are active or retired you will be able to save up to 15%.
Good driver discount – Being accident-free for five years or more can result in serious insurance discounts of over 25% with GEICO.
Membership And Employee Discounts – Belonging to one of GEICO’s 500+ groups can help you to save on your auto insurance premium.
Multi-Car – When you insure more than one car you will be able to save up to 25% on auto insurance.
Why compare auto insurance quotes?
Never leave money on the table. Many people don’t know that they could save over $1000 a year if they would take the time to compare quotes. I know one woman who was able to cut her cost of auto insurance by $200 a month by switching companies. She was able to save $2400 a year by switching. There are many discounts that you may be eligible for that you didn’t even know. I encourage you to maximize your savings by taking one minute to get quotes today.
Bottom Line
GEICO is an exceptional company. They are the second largest insurer of automobiles for a reason. Why are their insurance rates cheap? They cut the cost, which results in cheaper rates. I encourage you to compare quotes to find out if they are the cheapest in your area.