Top 6 Reasons GEICO Auto Insurance Will Save You Money






GEICO, which stands for “Government Employees Insurance Company,” is one of the largest providers of automobile insurance in the United States. GEICO relies heavily on television and internet advertising to solicit customers, and has some of the most recognizable commercials currently on television.

GEICO claims to be able to save customers “15% or more on car insurance.” How does the company manage to do this? Here are some reasons GEICO can offer lower rates than many of its competitors.

1) Direct customer-to-company relationship. Because GEICO does not employ local agents, the company manages to avoid the overhead costs associated with local offices. It also avoids the commission fees inherent in most agent-based insurance sales. You contact the company directly, and the company sells you a policy—avoiding unnecessary “middleman” charges. The money saved by this practice is passed on to you in the form of lower premiums.

2) GEICO is a large company. Because GEICO has such extensive assets, and such a large customer base, risk is spread over a much larger pool, which lowers your individual rates. If a claim is filed, GEICO does not have to raise its rates to meet the obligation, as some smaller companies may find necessary.

3) GEICO offers several levels of discounts to its customers. Your driving history and age are large determining factors in your rate, but this can be lowered by other behaviors or conditions. For example, taking drivers’ education or a defensive driving course can result in a discount on your premium. If you are a student, good grades can get you 15% off on certain coverage. Being a member of the military or an employee of the federal government may also save
you some money.

4) Customer loyalty saves you money. If you stay with the same company for a long period of time, that company wants to keep your business and will work with you to lower your rates. In fact, GEICO offers up to 30% off your rates for renewal of your policy.

5) Multi-car and multi-policy discounts lower rates. If you bundle all of your insurance with GEICO, you are eligible for significant discounts on all of your policies. You can get a discount of up to 25% for keeping all of your insurance business with the same company.

6) GEICO does not insure cars alone. Because GEICO has diversified to marine, motorcycle, recreational vehicle, and collectibles coverage, the company has grown and can offer lower premiums on all of its coverage. The larger the company’s base is, the more discounts it is able to offer on its auto insurance prices.

In order to find out how much you can save with GEICO, you will need to get a quote. You can do this by calling the company directly at 1-800-861-8380, or by visiting their website at www.geico.com. The website allows you not only to get an online quote, but to manage your account if you purchase from GEICO and to contact the company at any time.


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