Geico is one of the largest and most popular auto insurance companies in the United States, known for its competitive rates and extensive discount offerings. Here’s a comprehensive review based on various expert analyses.
Pros
- Affordable Rates: Geico is consistently recognized for its low premiums. For example, the average annual cost for full coverage with Geico is about $1,846, which is lower than the national average of $1,982​ (NerdWallet: Finance smarter)​.
- Wide Range of Discounts: Geico offers numerous discounts, including those for safe drivers, good students, military personnel, and federal employees. Discounts for safety features like airbags and anti-theft systems are also available​ (MoneyGeek.com)​.
- Financial Strength: Geico has an A++ rating from AM Best, indicating superior financial stability and the ability to pay out claims​ (Autoinsurance.com)​.
- Mechanical Breakdown Insurance: Unlike many competitors, Geico offers mechanical breakdown insurance, which covers repairs for new or leased vehicles that are less than 15 months old and have fewer than 15,000 miles​ (Autoinsurance.com)​.
- User-Friendly Digital Tools: Geico’s mobile app and online tools are highly rated for ease of use, making it simple to manage policies, file claims, and get quotes​ (MoneyGeek.com)​.
Cons
- Average Customer Satisfaction: While Geico scores well in some areas, its customer satisfaction ratings are generally average. It received a score of 843 out of 1,000 in the J.D. Power customer satisfaction survey, which is slightly above the industry average but not leading​ (MoneyGeek.com)​​ (Autoinsurance.com)​.
- Higher Complaint Ratio: Geico has a higher-than-average complaint ratio according to the National Association of Insurance Commissioners (NAIC). Its complaint index is 2.04, indicating more complaints than the national median​ (MoneyGeek.com)​.
- Limited Agent Network: Geico relies heavily on its digital platform, which may be a drawback for customers who prefer in-person interactions or have complex insurance needs​ (Autoinsurance.com)​.
- No Gap Insurance: Geico does not offer gap insurance, which covers the difference between the car’s actual cash value and the balance still owed on the financing, potentially leaving a gap in coverage for new car owners​ (Autoinsurance.com)​.
Expert Ratings
- NerdWallet: Rates Geico highly for its discounts and affordability, though it notes the average customer satisfaction ratings and higher complaint ratio​ (NerdWallet: Finance smarter)​.
- MoneyGeek: Scores Geico 85 out of 100, praising its financial strength and affordability but pointing out the mixed reviews on customer satisfaction​ (MoneyGeek.com)​.
- AutoInsurance.com: Highlights Geico’s strong financial ratings but notes mixed reviews on claims satisfaction and customer service​ (Autoinsurance.com)​.
Summary
Geico is an excellent choice for drivers seeking affordable rates and a wide range of discounts. Its strong financial stability and user-friendly digital tools add to its appeal. However, potential customers should be aware of its average customer satisfaction ratings, higher complaint ratio, and lack of gap insurance. For those comfortable with managing their insurance policies online and looking for budget-friendly options, Geico remains a strong contender in the auto insurance market.