Why Is Geico So Cheap?

did you compare the coverage side by side? Do they have the same amount of coverage for collision? Medical? ect? The cheap quote might be for bare bones coverage with a high deducible.

We had Nationwide and it was going to go up to about 240 per month ( we both drive lease cars, so we have to have to have the highest coverage)... We switched to Geico and pay 168 per month now... Never had an issue (knock on wood)...
My husband got hit from behind and the person had Geico as well... Within 4 weeks, car was appraised and fixed. No issues~

That sounds like an error somewhere in the paperwork. Double check all the numbers (the deductibles, the amount of coverage, uninsured motorist coverage, everything).
FWIW, we've had Geico for YEARS... seriously..husband used them before we got married and then we added me/my car onto his policy when we married. So...for almost 15 years we've BOTH been with them. We've had several claims (hit a deer, over $2,000 in damage; windshield cracked from a rock more than once; hubby scraped the side of a friend's vehicle backing out of a cramped driveway in my vehicle that is much bigger than what he usually is driving--they paid for all the damages; hubby was hit head-on by an uninsured motorist last year--they had us in a rental that same day and paid for it for 3 weeks, plus complete repairs to hubby's car (over $6,000 in repairs)--all we had to pay was a deductible of $250 due to it being uninsured motorist and the other driver was at fault--they sent us a check as compensation for my husband missing work and having to use his sick leave to go to the doctor). I have ZERO complaints with them. And yes we HAVE filed claims and they have handled them without hassle. Didn't even raise our rates after that last incident (the head-on with an uninsured motorist).

At that prices you are not getting enough coverage for anything. Plus is sounds as if you have liability only with this quote. Make sure you have the coverages you need or you will not be covered in certain types of losses.

I would double, triple and triple again check that before I signed on. Sounds too good to be true.

You may have the minimums required by state and then if something happens you are screwed. Read the fine print.

Our 6 month car insurance bill for 3 high end cars (mercedes), low miles (1 sedan, 1 sport luxury convertible, 1 coupe) and 1 teen driver with deductibles at $1000 each, and max coverage runs about $2000/6 months. We get a discount on that because we pay in full vs making monthly payments.

Sounds something has been left out OR you'll be hit with a higher bill the next time.

I agree with the advice you've gotten. Reread that quote carefully. I've never had Geico, but my husband was hit by one of their insureds resulting in a total loss and they were horrible to deal with! They were unprofessional and tried to lower the value of our vehicle claiming that our car was dirty on the inside due to my husband having a NEWSPAPER in car at the time which fell to the floor after he was slammed by their insured. We had to argue with them over that to get them to give us what we deserved! To top off their bad service, they had the nerve to use our info to add us to their mailing list without our permission. They suck.

It probably includes next to nothing, and they jack your rates up after 6 months. Progressive does the 6-month bait and switch as well.

When I looked into car insurance last year, Geico actually came out higher for full coverage and about the same as State Farm for liability. I get a multiple discount since I have homeowners with SF so stayed in place there. I am paying about $140 for liability only and full coverage for my husband's SUV is about $360 or something like that so I would check into that again.

We once did switch to Farmers and it turned out to not be the same coverage so went right back to SF.

I think you need to double check your quote ... I have them, mine is a reasonable price 125/mo and I have had them for YEARS but I have never needed to make a claim so I have not had to deal with that side of the business, been 4yrs.

I compared apples to apples when I got quotes because I was adding a 16 year old boy to my policy. Geico was $464.00 cheaper every 6 months and my deductible was CHEAPER. I couldn't believe it so I printed out my coverage I had and went into the office. I have the same coverage and dropped from a $500 collision deductible to a $250 collision deductible. I have everything that is required for my state. My sister and her husband have them and had to file a claim. They did not have any problems.

I had geico, they were cheap. I never had a claim but my rates went up every 6 months for no reason. I called and they couldn't give me a reason. Finally I switched to AAA.

I switched to Geico last month due to my husband getting 2x 1 pt defective vehicle and an "at fault" accident in less than 3 years. Our current company was going to cancel us, so I called Geico up and they gave me a great quote. Switched over and everything seemed fine, until I logged on recently and noticed I had an outstanding balance of $80.00. I called and they informed me that my policy would be going up by $500.00 every 6 months due to the fact that they were not originally including the accident in the policy premium. I am furious, it changes my premium by almost $100.00 per month and I feel "taken". I am not planning on keeping coverage w/ them. If you do switch over, make sure you compare apples to apples. Good luck!

check the coverages, drivers, and vehicles on the quote. That price is probably strict liability, just what the state requires.

I used Geico for several years, they were less than the other companies and the coverage was good. I switched to Nationwide when i bought my house and bundled my insurance - oh, yuck, more expensive - switched back to Geico.

I had an accident while insured with them - legally it was my fault, but the other driver, who was also insured with Geico, overclaimed - they investigated, and it wound up not affecting my premiums or rating or anything.

Anyhoo, in my never ceasing quest to save money, I shopped my auto insurance around last year and now I am with Progressive - they are actually less expensive then Geico and the coverage is better.

So, shop, shop, shop. There is good coverage at low rates out there.

God Bless

I had this happen as had a friend. They don't pay their claims without you fighting them tooth and nail. She was hit by an uninsured motorist and they wanted her to get the money from him instead of paying her claim on her uninsured motorist coverage!!!

You will be hard pressed to find anyone covered by them who has ever made a claim. Granted the last time they were brought up was two years ago so they may have changed....

GEICO is Government Employees Insurance Company, probably that it is why is cheaper than most of the other insurances companies.(?)

I have heard from ppl that have them and they say that when they put in a claim they have to fight. So is it really worth getting someone cheaper that you have to fight? I wouldn't go with them.
Years ago my mom called them about a quote and when they asked her if she had any tickets she told them no and the woman got very nasty with her. Telling her that they can find out if she is lying. My mom told them to stick their ins. LOL!!!
A friend of ours had them and got into an accident and they gave him such a hard time. It took him 100 phone calls and months of fighting to get his car fixed. He had to borrow a friends car cause he didn't have one for months.
Definetly not worth it in my opinion.

They weren't cheaper than State Farm for us. I work in medical billing and they are GREAT for claims service and payment, so I only have good things to say about them.

With that drastic of a difference I have to wonder if they accidentally quoted you for different coverage. We used Geico for quite a while and we were very happy with them. During that time, they were the cheapest coverage, but as our situation changed, they could not compete with other companies. My mother has been with Geico for over 20 years. As far as she is concerned there is no other insurance company. My experience has always been good with Geico, but I would definitely question those rates.

That sounds ridiculously cheap, even for Geico. We have geico for our 2 cars (nothing special, just an 8 year old minivan and a CRV) and we pay about $100/month. Make sure you look over the policy carefully. Sounds like they've left something out. That being said, I've had Geico for almost 20 years. I've never had a major accident, but they've been very nice to deal with for little things.

I have had Geico and Esurance, both have been fine for us. We actually switched from Geico to Esurance because Esurance was actually cheaper than Geico and will typically match match or beat pricing to get your business.

I am not sure how they get their rates so cheap, I think with Esurance it is because you can do most anything online and it cuts out the people factor.

Good luck!

We've had them for about a 1-1/2 years and we pay about $600 every 6 months. I caused a 3 car pileup and totaled my car 3 months after we signed on and I had no problems with them. One of the drivers went after them for $25,000 because he had a loss of enjoyment of life even though he got out of the car and walked across the street to talk to the cops. His medical bills were under $3100. This was the guy who was the innocent victim and had less damage to his car then any of us. It got taken to court and i won that battle. Our preumiums never went up. My nephew totaled our truck when we were on vacation and we had no problems. They are taking this to arbitration because my nephews insurance should be covering the accident not Geico.
YOur quote seems really low and that might be state minimum coverage. We got more coverage then they wanted to give us just in case.

I'm an insurance agent in AZ. You have to be VERY careful of quotes from Geico. I can't tell you how many client I have that had them and didn't even know they weren't covered for things they thought they were. Like when they quote you over the phone they will leave off coverages such as Medical Expense and Un/Under Insured and then you get all happy thinking you are saving when in reality its LESS coverage than you currently have. Get the quote in WRITING (they can email it to you) and double check every single line to make sure you are comparing apples to apples. Better yet, find an independent agent in your area that can do that for you, that's what we are here for and we know the tricks. Good luck!!!

My question to you is, is that quote for the EXACT same coverage as what you have now with Allstate? That sounds like what the minimum liability rates would be, not full coverage.

We have filed a claim through Geico in the past & had no issues, so I think everyone's going to have their own opinions on that aspect of it.