What GEICO is and what it sells

GEICO is a car insurance company owned by Berkshire Hathaway that sells auto insurance policies directly to drivers. It does not work through local agents — you get a quote, buy a policy, and manage your account online or by phone. GEICO also sells homeowners insurance, renters insurance, and motorcycle coverage, but auto insurance is its main business.

When you buy a GEICO auto policy, you are buying coverage that pays for damage to your car and liability if you cause an accident. The company does not lend you money or give you cash — it pays repair shops, medical providers, and other parties directly when a covered claim happens. You pay a monthly or six-month premium, and GEICO holds that money until a claim occurs or your policy ends.

Key Takeaways

  • GEICO sells auto insurance policies that cover collision, comprehensive, and liability damage, with prices that vary based on your driving record, age, location, and the car you drive.
  • You buy a policy online, by phone, or through the GEICO mobile app, and you can change your coverage or cancel anytime without a penalty.
  • When you have an accident or damage claim, you report it to GEICO, and the company either pays for repairs directly or reimburses you depending on your policy type.
  • GEICO offers discounts for bundling policies, safe driving, completing a defensive driving course, and paying your premium in full rather than monthly installments.
  • Your actual premium depends on factors GEICO calculates from your driving history, age, location, and vehicle — not on a fixed rate everyone pays.

The types of coverage GEICO offers

GEICO auto policies include several coverage types, and you choose which ones to buy. Liability coverage pays for damage you cause to someone else's car or property, and for their medical bills if they are injured in an accident you cause. Most states require you to carry liability coverage, and the minimum amount varies by state — typically $15,000 to $30,000 per person and $30,000 to $60,000 per accident.

Collision coverage pays for damage to your own car when you hit another vehicle or object, regardless of who caused the accident. Comprehensive coverage pays for damage from events you did not cause — theft, weather, vandalism, hitting an animal. Both collision and comprehensive are optional, but if you have a car loan or lease, your lender usually requires you to carry them.

Uninsured and underinsured motorist coverage protects you if you are hit by a driver who has no insurance or not enough insurance to cover your damages. Medical payments coverage pays your medical bills after an accident, regardless of fault. Uninsured motorist and medical payments coverage are optional in most states but required in some.

How to get a GEICO quote and buy a policy

You can get a GEICO quote in three ways: online at geico.com, by calling 1-800-861-8380, or through the GEICO mobile app. You will need your driver's license, vehicle identification number (VIN), and current insurance information if you have a policy with another company. The quote process takes about 15 minutes and gives you a price for the coverage you select.

Once you have a quote, you can buy the policy when ready online or by phone. GEICO will ask you to choose a start date — usually the same day or a future date up to 60 days away. You then choose how often to pay: monthly, every six months, or in full upfront. If you pay monthly, GEICO charges a small fee for the convenience. After you buy, you receive a policy document and proof of insurance that you can show a police officer if you are stopped.

You can make changes to your policy anytime — add or remove coverage, change your deductible, or add a household member to your policy. You can also cancel without penalty if you decide to switch to another company. GEICO will refund any unused premium for the remainder of your policy period.

What happens when you file a claim

If you have an accident or damage to your car, you report it to GEICO as soon as possible. You can file a claim online, through the mobile app, or by calling 1-800-333-4542. You will describe what happened, provide photos if available, and answer questions about the accident. GEICO will assign a claims adjuster to your case.

The adjuster will contact you to schedule an inspection of your vehicle or review photos you submit. They determine whether the damage is covered under your policy and estimate the repair cost. If the damage is covered, GEICO either pays the repair shop directly (if you use one of their preferred shops) or reimburses you after you pay for repairs yourself. The time from filing to payment usually takes one to three weeks, depending on the complexity of the claim.

If you disagree with GEICO's decision or the amount they offer to pay, you can request a review or file a complaint with your state's insurance commissioner. GEICO also offers mediation or arbitration to resolve disputes without going to court.

Discounts GEICO offers and how to get them

GEICO advertises a discount for bundling — buying auto and home insurance together usually saves 15 percent or more on your auto policy, though the exact amount varies by state and your personal situation. You also get a discount for a clean driving record with no accidents or traffic violations in the past three to five years.

Completing a defensive driving course through an approved provider can lower your premium by 5 to 10 percent. GEICO offers an online course through its website. Paying your premium in full for six months instead of paying monthly also saves you the monthly payment fee. Some states offer discounts for low mileage, good student grades, or completing a driver safety program.

Discounts stack — you can combine a safe driver discount with a bundling discount and a defensive driving discount on the same policy. The total savings depends on which discounts you may have access to for and your state's rules. When you get a quote, GEICO shows you which discounts explore to your situation.

How GEICO calculates your premium

Your GEICO premium is not a fixed price everyone pays — it is calculated from information about you, your driving history, and your car. GEICO looks at your age (younger drivers pay more), your driving record (accidents and violations raise your rate), your location (urban areas typically cost more than rural ones), and the vehicle you drive (expensive or high-performance cars cost more to insure). The company also considers how far you drive annually, whether you use your car for work, and your marital status.

GEICO uses this information to assign you a risk category — the higher the risk, the higher your premium. Two drivers with the same car in the same city can pay very different rates if one has an accident on their record and the other does not. Your premium can also change when you renew your policy every six months, because GEICO recalculates based on any new information — a recent accident, a traffic ticket, or moving to a different address.

You can lower your premium by improving the factors you control: maintaining a clean driving record, bundling policies, taking a defensive driving course, and paying in full rather than monthly. You cannot change your age or location easily, but you can shop around — GEICO's rate for you may be higher or lower than another company's rate for the same coverage.

When GEICO might deny a claim or charge you more

GEICO can deny a claim if the damage is not covered under your policy — for example, if you have liability coverage only and damage your own car in a collision, collision coverage would not pay because you did not buy it. GEICO can also deny a claim if you did not disclose information when you bought the policy, such as a household member with a poor driving record or a major accident in your history.

If you cause an accident, GEICO will likely raise your premium when you renew your policy. The increase depends on how serious the accident was and your state's rules. A minor accident might raise your rate 10 to 15 percent, while a serious accident or multiple claims can raise it 25 percent or more. The increase usually lasts three to five years, then falls off your record.

If you miss a premium payment, GEICO will send you a notice and give you a grace period — usually 10 days — to pay before your policy lapses. If your policy lapses, you lose coverage when ready, and driving without insurance is illegal in every state. You can reinstate your policy by paying the missed payment, but you may have to pay a reinstatement fee.

Frequently Asked Questions

Can I cancel my GEICO policy anytime?

Yes. GEICO does not charge a cancellation fee or penalty. You can cancel online, through the app, or by calling customer service. If you cancel mid-policy, GEICO refunds the unused portion of your premium. Some states require a short notice period — usually 10 to 30 days — but GEICO will tell you the requirement for your state when you request cancellation.

What if I get a traffic ticket — will my GEICO rate go up?

It depends on the type of ticket. Minor violations like speeding or an expired registration may not affect your rate, or may raise it slightly. Major violations like reckless driving, DUI, or driving with a suspended license will raise your rate significantly. GEICO checks your driving record when you renew your policy, so the increase takes effect at your next renewal date, not when ready.

Does GEICO cover rental cars if mine is in the shop?

Only if you buy rental reimbursement coverage as an add-on to your policy. This coverage pays for a rental car while yours is being repaired after a covered claim. The daily limit is usually $30 to $50, and the total reimbursement is capped at a certain amount per claim. You have to buy this coverage before you need it — GEICO will not cover a rental car if you did not have the coverage when the claim happened.

How do I know if GEICO is cheaper than other insurance companies?

Get quotes from at least two or three other companies — State Farm, Progressive, Allstate, or regional insurers in your area. Compare the same coverage limits and deductibles across all quotes so you are looking at the same protection. Your rate depends on your personal situation, so GEICO might be cheapest for you but expensive for someone else with a different driving record or location.

What if I move to a different state?

Contact GEICO to update your address. Your premium may change because insurance rates vary by state and sometimes by city. GEICO will recalculate your rate based on your new location and tell you the new premium before the change takes effect. You may also need to update your coverage limits if your new state has different minimum requirements than your old one.