Geico is so cheap because it sells insurance directly to consumers and offers a lot of discounts. Direct-to-consumer insurance sales eliminate the cost of middlemen and allow Geico to have significantly fewer local offices and agents than companies like State Farm and Allstate. Having a smaller agent network lowers Geico's overhead costs so they can pass those savings on to consumers.
Average Rates for Geico vs. Top Competitors
| Company | Minimum Coverage | Full Coverage |
| $39 per month | $163 per month | |
| $60 per month | $219 per month | |
| $46 per month | $189 per month |
Note: Premiums are representative of a 45-year-old good driver in California; individual premiums will vary.
Every insurance company determines their rates differently, so even though Geico is among the cheapest car insurance companies, the best way to make sure you're getting the cheapest rate is to compare quotes from multiple insurers.
To learn more, check out WalletHub's review of Geico and see Geico's full profile.
This answer was first published on 06/13/23 and it was last updated on 01/26/24. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
