Strategies To Reduce Geico Auto Insurance Premiums

There are several ways to lower your GEICO car insurance costs. You can take advantage of GEICO's auto insurance discounts, such as their Multi-Vehicle Discount, where you can save up to 25% on your premium by insuring more than one car with them. You can also opt for a higher deductible, but make sure you can still afford to pay it if you need to file a claim. Reducing your coverage is another option, but be cautious as this could lead to higher costs in the long run. Improving your driving record and credit score can also help you qualify for lower insurance rates. Additionally, GEICO offers a telematics program called Drive Easy, which tracks your driving behaviour and rewards you for safe driving with a discounted premium.

Take advantage of GEICO discounts

GEICO offers a wide range of discounts to help lower your car insurance costs. Here are some ways you can take advantage of these discounts and save money on your auto insurance:

Vehicle Equipment Discounts

You could receive a discount on certain car insurance coverages if your vehicle is equipped with certain safety features. For example, GEICO offers a:

• 5% discount on certain coverages if your car has a factory-installed anti-lock braking system.
• Discount of up to 23% on the comprehensive portion of your premium if your car has a built-in anti-theft system.
• 3% discount on certain coverages if your vehicle is equipped with daytime running lights as standard equipment.
• Discount of up to 15% on certain coverages if your vehicle is 3 model years old or newer.

Driving History and Habits Discounts

GEICO also offers discounts based on your driving history and habits. For example:

• If you've been accident-free for 5 years, you may be able to save up to 22% on most coverages with their Five-Year Accident-Free Good Driver Discount.
• You can receive a discount off the medical payments or personal injury protection portion of your premium if you and your passengers always wear seat belts.
• You may be able to save more if you've completed a defensive driving course.
• If a young driver in your family has completed a driver's education course, you may earn a discount on most coverages.
• Full-time students with good academic records could get up to a 15% discount on certain coverages.

Customer Loyalty Discounts

GEICO rewards customer loyalty with the following discounts:

• Multi-Vehicle Discount: Insure more than one car with GEICO and you can get a discount of up to 25% on most of your car insurance coverages.
• Multi-Policy Discount: If you insure your car through GEICO and have a homeowners, renters, condo, or mobile home policy through the GEICO Insurance Agency, you could get a discount on your car insurance.

Other Discounts

In addition to the discounts mentioned above, GEICO offers various other discounts, including:

• Good Driver Discounts.
• Discounts for emergency deployment and federal employees (Eagle Discount).
• Membership and Employee Discounts: GEICO offers discounts to members of certain groups and employees of certain companies.

Opt for a higher deductible

Opting for a higher deductible is a great way to lower your GEICO auto insurance premium. A car insurance deductible is the amount of money you pay towards an accident or a claim before your insurance coverage kicks in. By choosing a higher deductible, you agree to pay more out of pocket if you need to make a claim, but your insurance carrier will pay less. This results in a lower insurance premium for you.

When selecting your deductible amount, it's important to consider two key factors. Firstly, choose an amount that you are comfortable paying out of pocket in the event of a claim. Secondly, keep in mind that the deductible amount will impact your insurance premium. A higher deductible will lead to a lower premium, while a lower deductible will result in a higher premium.

Certain coverages, such as comprehensive, collision, uninsured motorist property damage, and personal injury protection, typically require you to pay a deductible. For example, if you have collision coverage with a $250 deductible and are involved in an accident that causes $2,000 worth of damage to your vehicle, you will pay the $250 deductible, and your insurance carrier will cover the remaining $1,750 towards repairs.

It's worth noting that in some states, you may be able to purchase additional auto insurance coverage that waives your deductible in certain scenarios. Additionally, there are circumstances where your deductible may be waived, such as when you have comprehensive coverage and need to repair windshield glass damage.

By opting for a higher deductible, you can reduce your GEICO auto insurance premium. Just ensure that you are comfortable with the amount you choose and that it aligns with your financial capabilities.

Reduce your coverage

One way to lower your GEICO auto insurance is to reduce your coverage. While most states require a certain amount of bodily injury liability and property damage liability coverage, there are other coverage options that you can do without. These include comprehensive, collision, personal injury protection, and uninsured motorist coverage.

However, reducing your coverage should be approached with caution. While it will lower your premium, it could also lead to higher costs in the long run. For example, if you decide to drop comprehensive coverage, you will no longer be covered for damage to your car that is not the result of a car accident. This includes damage from vandalism, theft, or natural disasters such as hail or fire.

Similarly, collision coverage pays for damage to your car resulting from a collision with another vehicle or object. If you drop this coverage and are at fault in an accident, you will be responsible for the cost of repairing or replacing your vehicle.

If you own your car outright and it is older, you might consider dropping full-coverage insurance altogether. However, keep in mind that this will leave you financially vulnerable in the event of an accident or damage to your vehicle.

Another way to reduce your coverage is to increase your deductible. This will lower your premium, but make sure you can still afford to pay the deductible if you need to file a claim.

Finally, it's important to review your policy regularly to ensure you are not paying for coverage you don't need. Life changes, such as moving to a new state, getting married, or adding a new driver to your policy, may impact the type and amount of coverage you require.

Improve your driving record

Improving your driving record is one of the most effective ways to lower your GEICO auto insurance premiums. Safe drivers are generally rewarded with lower auto insurance rates and are eligible for safe driver discounts. GEICO offers a maximum 15% discount to drivers who take an approved defensive driving course.

Practising safe driving habits and avoiding moving violations can help you qualify for lower GEICO insurance rates long-term. This includes avoiding speeding tickets and other traffic violations, which can increase your premium. If you have a history of accidents or claims, improving your driving record by driving safely and avoiding incidents will help lower your insurance costs over time.

In addition to safe driving, maintaining a clean driving record is also important. If you have a squeaky-clean driving record, free of accidents and violations, you may be eligible for good driver discounts. GEICO offers a 22% discount on most coverages if you've been accident-free for five years.

Another way to improve your driving record is by enrolling in GEICO's telematics program, Drive Easy. This program tracks your driving behaviour and rewards you for good driving with a discounted premium. By monitoring distracted driving, hard braking, cornering, smoothness, road type, distance driven, weather, speed, and the time of day you drive, Drive Easy can provide you with feedback to help you improve your driving habits and lower your insurance costs.

Build and improve your credit score

Building and improving your credit score is an important step in improving your overall financial health. Lenders use your credit score to assess your ability to manage debt and your creditworthiness. A higher credit score can open the door to better loan terms and lower interest rates. Here are some detailed and direct tips to help you build and improve your credit score:

• Pay Bills on Time: Paying your bills on time is one of the most important factors in improving your credit score. Set up due date alerts, automate bill payments, or charge them to your credit card (ensuring you pay off the balance each month). This will help you avoid late payments, which can negatively impact your score.
• Aim for Low Credit Utilization: Credit utilization refers to the portion of your credit limit that you use. Aim to use 30% or less of your available credit. You can do this by paying off credit card balances and requesting a credit limit increase. Keeping your credit utilization low will positively impact your score.
• Review Your Credit Reports: Obtain a copy of your credit report from the three major credit bureaus (Equifax, Experian, and TransUnion). Review these reports to identify factors that may be helping or hurting your score, such as payment history, credit card balances, credit mix, and age of credit accounts.
• Limit New Credit Applications: Each time you apply for new credit, a hard inquiry is made on your credit report, which can negatively impact your score. Only apply for new credit when necessary, and consider using prequalification offers to gauge your eligibility without impacting your score.
• Dispute Inaccurate Information: Errors on your credit report can pull down your score. Obtain your free credit reports and dispute any inaccuracies, such as late payments, high credit card balances, or incorrect negative information.
• Become an Authorized User: If you have a relative or friend with a credit card account in good standing, ask to be added as an authorized user. This can help improve your credit score, especially if you have a thin credit file.
• Keep Old Accounts Open: Avoid closing old credit card accounts, as this can lower your available credit and increase your credit utilization ratio. Instead, consider using them occasionally or putting a small recurring bill on the card to keep it active.
• Consolidate Your Debts: If you have multiple outstanding debts, consider consolidating them with a debt consolidation loan or a balance transfer credit card. This will simplify your payments and may help improve your credit utilization ratio.
• Use Credit Monitoring: Credit monitoring services can help you track your credit score's progress and alert you to any changes in your credit report, such as new accounts or paid-off debts.
• Pay Off Collections Accounts: Paying off collections accounts can remove the threat of legal action and may persuade collection agencies to stop reporting the debt. You can also dispute and remove inaccurate or outdated collections accounts from your credit reports.
• Use a Secured Credit Card: A secured credit card is backed by a cash deposit and can help you build or rebuild your credit history. Ensure you make on-time payments and keep your credit utilization low.
• Get Credit for Rent and Utility Payments: Services like Experian Boost and UltraFICO can include your rent and utility payments in your credit score calculation, helping to improve your score.
• Add to Your Credit Mix: Consider adding a different type of credit account, such as a loan or a new credit card. This can improve your credit mix and reduce your overall credit utilization.

Frequently asked questions