car insurance discounts

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If you’re moving away for college and planning to bring a car, remember to check how this change might impact your car insurance. You might need to purchase your own car insurance policy, for example, or you may be able to stay on your parents’ policy if you meet certain conditions. Having the right coverage in place can help ensure you’re covered in case of an accident.

The best car insurance for college students

While many of the best car insurance companies provide discounts to college students, some are more generous than others. Below, Bankrate’s insurance editorial team selected five top car insurance providers that offer competitive rates to college-aged drivers on their parents’ policy, according to 2023 auto insurance rate data pulled from Quadrant Information Services.

Each company is listed with its Bankrate Score, which shows how well each insurance provider performs overall, on a five-point scale. Our team calculates Bankrate Scores by analyzing each company’s average premiums, coverage offerings, discount options, complaints filed with the National Association of Insurance Commissioners (NAIC), mobile app, J.D. Power score for customer service and AM Best rating for financial strength. The closer a company scores to five, the better it performs across each category.

Insurance company Bankrate Score Average full coverage premium with a student discount on their parents’ policy Average full coverage premium without a student discount on their own policy
Geico 4.4 $2,523 $4,048
State Farm 4.2 $2,689 $7,089
Progressive 4.2 $3,163 $7,088
Farmers 3.8 $2,762 $6,567
Allstate 3.8 $4,184 $7,089

*Rates calculated for 18-year-olds students, either on their parents’ joint policy with a student discount applied or on their own policy without a student discount applied

Geico

Why we picked this carrier: Geico offers a low average full coverage rate when adding an 18-year-old college student to their parents’ car insurance policy.

If you’re looking for cheap car insurance, you may want to get a quote from Geico. Geico’s average annual cost for full coverage car insurance for 18-year-olds on their parents’ policy is $2,523 per year with a good student discount. College students may also be able to qualify for other discounts to further bring down the cost, like Geico’s discounts for membership in several organizations. The company received a high Bankrate Score of 4.4 for its wide range of discounts and low average premiums. However, the company lost a few points for its lack of optional endorsements. Unlike some of its competitors, Geico does not offer a 24-hour helpline.

PROS


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    Offers discounts for fraternity, sorority, honor society and other membership organizations


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    Several student discounts available


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    Low average rates for college students added to their parents’ policy

CONS


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    No 24/7 helpline


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    Few optional endorsements

Learn more: Geico insurance review

State Farm

Why we picked this carrier: State Farm offers a generous potential discount percentage for good students.

Parents with 18-year-old students on their State Farm auto policy pay an average annual cost of $2,689 for full coverage car insurance with a good student discount. State Farm offers savings for eligible college students who can maintain a GPA of at least 3.0. Students attending school away from their primary residence without a car may also be eligible for a distant student discount, and combining these two discounts could result in an even lower premium. The company received one of the highest Bankrate Scores on our list for its low average premiums, accessible mobile app and excellent online policy management. However, if you’re interested in buying accident forgiveness coverage, a State Farm policy wouldn’t be ideal. The company only offers the coverage as a perk earned by having a certain number of claim-free years on your record, which can’t be bought.

PROS


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    Low average rates for college students added to their parents’ policy


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    Good student and distant student discounts available


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    Offers a safe driving program for teens called Steer Clear

CONS


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    Gap insurance unavailable


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    Accident forgiveness can’t be purchased, only “earned”

Learn more: State Farm insurance review

Progressive

Why we picked this carrier: Progressive’s Snapshot telematics program could be a great savings opportunity for college students who drive safely and infrequently.

Progressive’s average annual cost of full coverage car insurance for 18-year-olds on their parents’ policy is $3,163 with a good student discount. In addition to the standard good student and distant student discounts, Progressive also offers Snapshot, a usage-based car insurance program — which could help lower your rate based on your driving habits. The company earns a high Bankrate Score for its exceptionally wide range of coverage options, plentiful discounts and seamless online policy management. However, the company tends to have lower-than-average customer satisfaction ratings according to J.D. Power.

PROS


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    Usage-based car insurance available


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    Good student and distant student discounts available


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    Offers an automatic teen discount for drivers age 18 and younger

CONS


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    Typically ranks lower than the average in J.D. Power customer satisfaction


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    Rates may differ between online and agency quotes

Learn more: Progressive insurance review

Farmers

Why we picked this carrier: Farmers offers several discount opportunities to students.

Parents with 18-year-old college students on their policy pay an average of $2,762 for their insurance each year with Farmers with a good student discount applied. Farmers also offers a youthful driver discount for anyone under 25 who is a child or grandchild of a current policyholder. While Farmers scored well in terms of mobile app and policy management, the company doesn’t have 24/7 customer support and is not available nationwide.

PROS


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    Students who make the dean’s list or honor roll may be able to save


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    Several student and young driver discounts available, such as the Youthful Driver discount


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    Offers a telematics program called Signal

CONS


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    Not available nationwide


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    No 24/7 support

Learn more: Farmers insurance review

Allstate

Why we picked this carrier: Allstate has multiple discount opportunities for college students.

Although Allstate has a high average premium for a student on their parents’ policy, college students may be able to apply discounts to bring down the cost of auto insurance. College students who can maintain a GPA of at least 2.7 may qualify for a good student discount, which is more generous than many other insurers’ good student discount qualifications. The company’s Bankrate Score was impacted by its high premiums. However, it gained points for its A+ (Superior) AM Best financial strength rating and user-friendly policy management.

PROS


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    Money-saving programs such as Smart Student and teenSMART available


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    Several student discounts available


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    Robust digital tools

CONS


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    High average premiums


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    Fewer additional coverage options than other carriers

How can college students lower their car insurance premium?

Because car insurance rates for young drivers are significantly higher than the national average cost of car insurance, finding ways to save money may be critical. To find cheap car insurance for college students, you may want to get several quotes to give you an idea of what you will pay. Some other ways to save include:

Student discounts

Many car insurance companies offer discounts designed specifically for college students, such as:

Earning good grades in school demonstrates to insurers that you are responsible, making it more likely that you are a responsible driver and often earning you a discount.

Another way to save money on car insurance is to complete a driver’s education course. For example, drivers with a Geico insurance policy could save by completing a defensive driving course to refresh their memory on the rules of the road.

You could save money by leaving your car at home when you are away at school. Most car insurance carriers will discount your rate if you a a certain number of miles away without a car, prorating your premium to reflect the months you are away at school and not using your vehicle.

Students can often save by demonstrating their safe driving practices through insurance programs designed for young drivers. For instance, there are savings programs like American Family’s Teen Safe Driver, for drivers under age 21, and State Farm’s Steer Clear program, for young drivers up to age 25. After completing the program, drivers could get a discount on their car insurance.

Affiliation discounts for students

Many insurance companies also offer discounts for students who participate in certain organizations or associations, such as:

Geico offers car insurance discounts for fraternities, sororities and even honor societies, along with an extensive list of other organizations.

Some companies may offer discounts if you are an alumni of a certain university or even if you’ve simply completed a two- or four-year degree.

If a parent is a veteran or military member, you might save extra money on your car insurance through military discounts. As a military-only provider, USAA is one option for military discounts for your car insurance, but a few other companies offer military discounts, too, such as Geico, The General and Liberty Mutual.

Other ways to save

In addition to student and affiliation discounts, there are other ways college students can help lower car insurance premiums using these additional savings programs:

  • Lower your mileage: When you spend less time on the road, there’s a lower risk of accidents happening, so many carriers will offer lower car insurance premiums to drivers who rack up fewer miles.
  • Drive a used car: Newer cars may be more expensive to repair or replace, so rates could be higher. A used car is generally cheaper to fix and may qualify you for lower car insurance premiums than a new car. Driving a vehicle with extra safety features is another way to potentially earn lower premiums, so explore models with safety features like anti-lock brakes, electronic stability control, forward-collision warnings and automatic emergency braking.
  • Explore pay-as-you-go insurance: Instead of paying full price for car insurance, you might be able to sign up for pay-per-mile insurance, which monitors your driving and charges your car insurance accordingly. It’s a popular option with several car insurance companies: Allstate offers its Milewise program and Nationwide has its SmartMiles program.
  • Car additions: Some additions and upgrades may make your car safer and help you save money on car insurance premiums.
    • Dash cams: Dash cameras could help reduce car insurance rates by reducing the likelihood of crime involving your vehicle and also protecting you against false liability claims that could cost your insurer money. Discounts for dash cams aren’t common, but you may find a carrier that offers one.
    • Navigation systems: A GPS navigation system can help keep you feel more prepared when driving, helping you drive slower and more safely, which could translate to lower rates.
    • Anti-theft device: A car alarm or other anti-theft device may earn you extra discounts by lowering the risk of theft or vandalism.

Ways to save on driving

Driving can be expensive, especially so for college students on tight budgets. Keeping transportation costs low can help students afford to keep their cars and maintain insurance on the vehicle. Here are some ways to save on gas and vehicle maintenance. 

How to save on gas

Gas can be pricey, especially if you drive often. Here are some ways to lower your gas costs:

  • Choose a car with good gas mileage: College students often commute between home and school, so a car with excellent gas mileage can easily save hundreds of dollars each year. 
  • Use a rideshare service: Using rideshare services like Uber and Lyft can help you save on gas costs, and may be especially cost-effective if you opt for group ridesharing, where you split the cost with others.
  • Utilize public transportation: Public transportation can almost entirely eliminate transportation expenses. Buses, trains or subways are often a fraction of the cost of driving and are usually accessible at most colleges or universities.
  • Invest in a bicycle: A bicycle can be an even better substitute for public transportation, especially for students in urban areas. Using a personal bicycle is free after purchase, and there are also typically lots of options for low-cost bike sharing or rentals in more populated areas.
  • Carpool with your classmates or colleagues: If you must drive, consider setting up a carpool or car-sharing arrangement with classmates or colleagues who live along your route. They will probably appreciate the opportunity to save money and it gives you the added benefit of some company during the commute. Just be sure to talk to your insurer if you’re exchanging money for gas and maintenance, to make sure you’re still covered.

How to save on maintenance

Maintenance costs should be factored into buying a vehicle as well, as they can be a large portion of your car budget. Here are some tips to save on maintenance:

  • Find car deals for new graduates: Many car manufacturers offer special purchase deals for current college students or recent graduates to buy a new car. There may also be short-term leasing specials available for students for those not ready to purchase a vehicle.
  • Ask about student savings programs for oil changes: Another potential place to save is regular oil changes. College students can burn through many miles and require more frequent oil changes, but many of the larger chains, such as Jiffy Lube, offer students discounts.
  • Utilize free tire and air fill-up services: To save extra money on diagnostic and professional services, check your tire pressure yourself. Most gas stations offer free or cheap stations to check tire pressure and add air if necessary.
  • Research DIY repairs: There are several basic car repairs that can be done at home. Learning how to do essential maintenance can save money on parts and high labor costs. It will also save time to repair the car on your own schedule. These basic repairs are easy to learn and can save hundreds of dollars. Before attempting them, it’s worth researching potential safety hazards so that you can avoid complications:
    • Change the battery.
    • Change the oil.
    • Change your spark plugs.
    • Replace tail lights or headlights.
    • Swap out windshield wipers.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually. 

These are sample rates and should only be used for comparative purposes. 

Age: Rates were calculated by evaluating our base profile with age 18 (base: 40 years) applied. The 18-year-old driver on their own policy is a renter. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

Source: thesimpledollar.com

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Updated Jan 18, 2023

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At a glance

BANKRATE AWARDS 2023 WINNER

Best auto insurance company overall (tie)

See why it won

4.4

Bankrate Score


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Auto

4.4


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Cost & ratings

4.6



Coverage

4.0



Support

4.7


About Bankrate Score

Bottom Line

Policyholders who value cheaper car insurance and digital capabilities over bundling multiple insurance policies with the same company might consider Geico as their company of choice.

  • Low average premiums for high-risk drivers

  • Robust online and mobile app accessibility

  • Multi-policy discounts available

Answer a few questions to see personalized rates from top carriers

Geico car insurance

Geico car insurance received a Bankrate Score of 4.4 out of 5 points. To determine this Score, our insurance editorial team reviewed Geico’s average premiums, coverage options, discounts, customer satisfaction, financial strength and digital insurance features. The better a company performed in each of these categories, the higher its overall Bankrate Score.

Along with its high Bankrate Score, Geico was also named one of this year’s best car insurance companies overall, as well as the best budget car insurance company in the 2023 Bankrate Awards. Thanks in part to its overall lower-than-average premiums and plentiful discount opportunities, Geico may be a good choice for drivers looking for a cheap premium. Average Geico car insurance rates are also significantly cheaper than the national average when adding a young driver to the policy.

Bankrate Award winner for best auto insurance company overall and best budget auto insurance company

Bankrate’s insurance editorial team has decades of combined industry experience, and we use our expertise to uncover the best insurance companies through our annual Bankrate Awards.

Our goal is to give consumers an easy way to find a company that fits their unique circumstances. Based on our extensive research, we’ve recognized Geico as a 2023 Bankrate Award winner for the best overall auto insurance company and the best budget auto insurance company.

Why Geico won

Geico offers below-average auto insurance rates as well as a solid mix of coverage options, discounts and digital tools. These factors, combined with customer satisfaction and financial strength scores, earned Geico Bankrate Awards for best overall auto insurance company and best budget auto insurance company.

  • To choose the best overall auto insurance company, we started by gathering information from over 150 insurance companies. We researched average quoted annual premiums obtained from Quadrant Information Services for all 50 states and Washington, D.C., because we know that price is a top concern for many shoppers. We also know that service and financial strength are important, so we also evaluated third-party scores and ratings from J.D. Power, the National Association of Insurance Commissioners (NAIC), AM Best, Standard & Poor’s (S&P) and Moody’s. To ensure that we chose companies that offer the coverage that drivers need, we next reviewed available coverage options and discounts. Finally, we considered each company’s local agency presence, digital tool functionality, corporate sustainability and national availability (which we define as being available in at least 48 states, since Alaska and Hawaii often present unique challenges to insurers). While our Bankrate Awards can serve as a helpful guide, keep in mind that each insurance company has its own underwriting and pricing regulations, which means eligibility and rates will vary. We chose to feature two companies, Amica and Geico, as the best overall to help a wider range of drivers.

    Price was the most important factor as we looked for the best budget auto insurance company. We obtained average quoted premiums from Quadrant Information Services for all 50 states and Washington, D.C., then analyzed the rates by a number of driver profiles. We weighed the national average rate most heavily in our analysis, but also considered coverage options, discounts, third-party scores and digital tools. Geico consistently offers low average rates and has a long list of discounts that could lower premiums even more.

Geico car insurance is available in all 50 states and Washington, D.C. Its coverage options are generally standard, and it does not have as many optional add-ons as some other car insurance carriers. The only additional options listed on Geico’s website are emergency roadside service, rental reimbursement and mechanical breakdown insurance.

Pros and cons of Geico car insurance

If you’re comparing auto insurance rates, considering Geico’s pros and cons might help you in your decision.

PROS


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    Average rates are lower than the national average


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    Average rates for drivers with an at-fault accident or moving violation on their record may be more affordable than competitors


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    Robust digital tools for online policy management

CONS


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    May have limited local agencies for those who want in-person support


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    Fewer optional coverage add-ons than competitors


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    Mobile app is highly-rated in the app store, but the company scored below the segment average for service in the J.D. Power U.S. Insurance Digital Experience Study

Geico car insurance cost

Based on Bankrate’s study of rate data from Quadrant Information Services, Geico is one of the cheapest car insurance companies. Its 2023 average cost of car insurance is $1,353 per year for full coverage and $373 per year for minimum coverage. This is notably lower than the 2023 national average cost of car insurance at $2,014 per year for full coverage.

Geico car insurance rates by driving history

Car insurance companies may weigh driving records heavily when it comes to calculating car insurance rates. An at-fault accident or moving conviction, such as a speeding ticket or DUI, could make your car insurance more expensive compared to a driver with no accidents or tickets on their record. Below is a comparison of rates for drivers with different driving histories. A DUI conviction has been excluded as some insurance carriers may not accept drivers with a DUI.

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Geico average monthly full coverage premium Geico average annual full coverage premium National average annual full coverage premium
Clean driving history $113 $1,353 $2,014
Speeding ticket conviction $138 $1,658 $2,427
At-fault accident $166 $1,988 $2,854
Geico average monthly minimum coverage premium Geico average annual minimum coverage premium National average annual minimum coverage premium
Clean driving history $31 $373 $622
Speeding ticket conviction $38 $455 $748
At-fault accident $46 $551 $892

Geico car insurance quotes by age

The age of a driver and the years of driving experience they’ve accumulated may also play an important role in determining car insurance rates. Young drivers and those who are newly licensed typically pay more for car insurance than drivers with more years of experience behind the wheel. Average insurance rates by age show that auto insurance premiums do tend to decrease over time until your 60s, but you may be able to find the best car insurance rate at any age by compiling car insurance quotes.

Below are comparisons that show young drivers both on and off their parents’ policy, as well as how they compare to other age groups. All rates are for drivers with a clean driving record.

Average cost of car insurance for drivers on their parents’ policy

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Geico average monthly full coverage premium Geico average annual full coverage premium National average annual full coverage premium
Age 16 $248 $2,977 $4,392
Age 17 $229 $2,753 $4,102
Age 18 $210 $2,523 $3,837
Age 19 $184 $2,212 $3,345
Age 20 $171 $2,054 $3,149
Geico average monthly minimum coverage premium Geico average annual minimum coverage premium National average annual minimum coverage premium
Age 16 $74 $886 $1,470
Age 17 $68 $811 $1,362
Age 18 $61 $733 $1,261
Age 19 $53 $633 $1,070
Age 20 $48 $580 $995

Average cost of car insurance for drivers on their own policy

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Geico average monthly full coverage premium Geico average annual full coverage premium National average annual full coverage premium
Age 18 $337 $4,048 $6,110
Age 25 $132 $1,584 $2,473
Age 30 $116 $1,389 $2,125
Age 40 $113 $1,353 $2,014
Age 60 $105 $1,264 $1,824
Geico average monthly minimum coverage premium Geico average annual minimum coverage premium National average annual minimum coverage premium
Age 18 $98 $1,175 $1,967
Age 25 $36 $432 $747
Age 30 $32 $379 $647
Age 40 $31 $373 $622
Age 60 $29 $352 $578

You may be eligible for a discount if you are a member or employee of a participating affiliate company or organization.

Both active duty and retired military policyholders, as well as members of the National Guard or Reserves, may save up to 15 percent on Geico auto insurance.

Geico provides up to 25 percent off car insurance for service members who experience an emergency deployment.

This usage-based telematics program tracks participating members’ driving habits and may offer premium discounts to safe drivers.

Geico may extend a discount to policyholders who insure multiple vehicles on the same policy.

Full-time students who maintain a strong academic record may receive a discount of up to 15 percent.

Geico car tools and benefits

Geico has partnered with TrueCar to create its Geico Car Buying Service. With this program, Geico policyholders can research their desired car’s market value and receive assistance from TrueCar’s Certified Dealers. After purchasing their vehicle, Geico members can use Geico Mobile’s Vehicle Care app, created through a partnership with CARFAX, to track their service history, access recall information and set maintenance reminders.

Drivers 50-years-old and older in certain states may qualify for policy renewal for life through Geico’s Prime Time contract. However, there are eligibility requirements. For example, there can be no drivers listed on the policy under the age of 25, no drivers on the policy can have received a violation or been involved in an accident in the past three years, and you can’t use your vehicle for business purposes. Still, this unique contract could provide peace of mind for those who are eligible.

Geico home insurance

Geico does not write its own home insurance policies, but it works with non-affiliated insurance companies to provide homeowners insurance quotes to interested customers. The policies are secured through GEICO Insurance Agency, LLC, and may require additional research to see if they offer the best homeowners insurance for your needs. Although coverage options and discounts may vary based on the partner company, Geico does advertise a bundling discount for auto insurance customers who add a property insurance policy through the carrier.

Geico life insurance

Similar to its home insurance policies, Geico life insurance is offered through partner companies.

Geico’s partnered life insurance offerings are available in three policy types: term life, whole life and universal life insurance. Term life insurance provides coverage for a specific amount of time, such as 10 or 30 years, and is typically used to replace lost income and cover future expenses if the policyholder passes away during the policy term. Customers may be able to obtain a term life insurance policy through Geico’s partner companies with no medical exam, but they will likely still have to fill out a health and lifestyle questionnaire.

Whole life insurance and universal life insurance are both types of permanent life insurance. These policies do not have a policy end date as long as policy terms are fulfilled. In addition to helping with income, permanent life insurance policies could also be an integral part of estate planning.

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Geico customer satisfaction

Bankrate analyzes a variety of metrics to evaluate an insurance company’s customer satisfaction, including third-party scores issued by J.D. Power. Every year, J.D. Power studies customer satisfaction, claims satisfaction and digital experience for various insurance companies across the country and issues them scores in each subject, with 1,000 being the highest score possible.

Our editorial team also considers the National Association of Insurance Commissioners (NAIC) complaint index. The NAIC keeps track of how many complaints are lodged against an insurance company and translates this data into a complaint index score. To understand this data, know the baseline (or average) amount of customer complaints is 1.0. A complaint index score higher than 1.0 means the company receives more complaints on average for its size and vice versa.

Geico auto satisfaction

Geico’s scores in the J.D. Power 2022 U.S. Auto Insurance Study vary depending on the region. Although it often scored above the segment average, it fell short in Texas and the Mid-Atlantic and Southeast regions. Additionally, it landed just above the industry average for claims satisfaction in the J.D. Power 2022 U.S. Auto Claims Satisfaction Study.

Geico’s full-service mobile app and online customer portals may be a big perk for tech-savvy shoppers. While it is true that the app is highly-rated on the App store and Google Play, the company fell under the segment average in the service category in the J.D. Power 2022 U.S. Insurance Digital Experience Study. Consumers may be more satisfied with Geico’s online sales flow as the company scored above average in the shopping category.

Regarding the NAIC complaint index, Geico has fewer complaints, on average, about its private passenger auto insurance for a company of its size, with a complaint index of 0.68. This index may indicate that Geico’s auto insurance policyholders are generally happy with the company’s service.

How to file a claim with Geico

Filing a claim with Geico can be done online through its website or the mobile app. Policyholders may also call the company’s claims line at 800-841-3000.

As Geico homeowners insurance is offered through partner companies, contact information for property claims may vary based on the company that writes your policy. A comprehensive list of property claims contact numbers can be found on Geico’s website.

Geico availability

Geico is available in all 50 states and Washington, D.C.

Other Geico perks worth considering

Auto insurance may be Geico’s most popular product, but customers can also access the following:

  • Travel insurance: Offered through Berkshire Hathaway Travel Protection, this insurance could help insure your travel costs including trip cancellations, lost or stolen travel documents or unplanned medical costs.
  • Jewelry insurance: Geico has partnered with Jewelers Mutual Insurance Group to help customers insure valuable and sentimental jewelry against theft, damage and loss.
  • Pet insurance: Caring for a pet can be a major expense, but pet insurance may help decrease some of the costs. Geico works with partner insurance carriers to provide coverage for most accidents, non-pre existing illnesses, dental care and more.

Geico corporate sustainability

Geico supports three main initiatives through the Geico Philanthropic Foundation: education, community engagement and equity, justice, diversity and inclusion. The Foundation has donated an average of $6-8 million annually to over 7,000 charities in the last twenty years. It encourages policyholders and the wider public to submit their 501(c)(3) non-profit organizations for donation consideration, provided that the non-profit meets Geico’s criteria. Nominations can be made from the start of the year to November 30.

Not sure if Geico is right for you?

If you’re still wondering if Geico could be a good fit for your insurance needs, you may want to consider requesting quotes from the companies below:

Geico vs. Esurance

As a fully digital insurance company, Esurance offers a robust digital app experience and may be another good option for those who want to manage their own policies. Its telematics DriveSense mobile app may allow Esurance customers and non-policyholders to earn rewards and discounts by tracking real-time driving habits and behaviors. However, Esurance does not advertise as many discounts as Geico and has higher average auto insurance premiums.

Learn more: Esurance Insurance review

Geico vs. Nationwide

Low-mileage drivers and those who want to build safe driving habits may appreciate Nationwide’s two telematics programs: SmartMiles and SmartRide. Nationwide could also be an option for those who want to bundle home and auto insurance with the same carrier, as the company writes its own homeowners insurance policies. Consumers should note that Nationwide did score below the industry average in J.D. Power’s auto claims satisfaction study.

Learn more: Nationwide Insurance review

Geico vs. Progressive

Progressive offers a long list of car insurance discounts as well as numerous home insurance discounts for those looking to save on both policy types. The company’s Name Your Price tool may also help customers take a price-first approach to their car insurance and find coverage that fits their budget. Progressive auto insurance is available in all 50 states, but homeowners insurance is not, so potential customers may want to verify availability when researching this carrier.

Learn more: Progressive Insurance review

Is Geico a good insurance company?

Bankrate’s insurance editorial staff includes three licensed agents, and we aim to share our intimate industry knowledge to help our readers choose the best insurance company that suits their needs. Insurance is complex, and we know that finding the right carrier isn’t always easy. That’s why we spend hundreds of hours each year conducting in-depth insurance company reviews.

Bankrate’s Geico insurance review also revealed that the company does not underwrite many insurance products other than car insurance. However, its partnerships with non-affiliated companies could allow customers to purchase most types of insurance including home, umbrella and life. Additional research may be required on these carriers to see if they’re the right fit.

Clock Wait

46

years of industry expertise

122

carriers reviewed

20.7K

ZIP codes examined

Dollar Coin

1.2M

quotes analyzed

Methodology

Auto

Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident and single speeding ticket.

Bankrate Scores

Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.

  • Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
  • Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
  • Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

Tier scores are unweighted to show the company’s true score in each category out of a possible five points.

Source: thesimpledollar.com

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Whether you’re getting married, putting your teen behind the wheel for the first time, or buying your first home, a big life change can have a ripple effect on your finances.

While it might not be top of mind, one of those effects could be your car insurance. There’s a lot more that goes into calculating your rates than the standard questions about age, gender, and driving record. When you hit a major milestone in life, your new status can impact those rates in unexpected ways.

Here are five events that might trigger a change in your insurance.

1. Getting Married

Good news for honeymooners: in most cases, being married will lower your car insurance rates! Adding a partner to your insurance could spell savings for your household, especially for younger couples. It turns out that married people are less likely than single people to get into accidents. Ah, the perks of true love.

2. Buying a Home

One of the biggest milestones in life is buying your first home. While homeowners coverage is a must, becoming a homeowner might actually affect your car insurance, too.

Like married people, homeowners tend to see better rates on car insurance. Those savings could be even higher when you bundle your auto and homeowners policies with the same insurer (not to mention more convenient).

Buying a home also means that you might want to take a look at boosting your auto coverage. Look for polices that protect your assets and take care of legal costs-bodily injury, uninsured/underinsured motorist bodily injury and property damage are your best options. As you build up equity in your home, you’ll want to make sure your investment is safe, no matter what happens.

3. Adding a Teen Driver

As nervous as you may be to see your teenage child in the driver’s seat for the first time, you’ll feel better when they’re protected under your insurance policy.

Teen drivers need to be covered as soon as that driver’s license is in their hands. Your rates will probably increase, because this age group has much higher accident rates than older drivers, which makes them riskier to insure.

However, there are a few things you can do to help keep your rates low. For instance, when you add your teen to your policy, check to see if you qualify for a multi-driver discount. Likewise, if your teen has his or her own car, you could get the multi-car discount. Good students can help lighten the load as well. Many insurers offer discounts to young drivers who keep their grades up.

4. Getting Divorced

If you and your spouse are parting ways, it’s important to make sure both of you-and any dependents you might have-are still covered.

Once you’ve divvied up the cars, you and your ex will need to get separate policies. The change in circumstances makes this a good time to comparison shop, especially because you may be losing out on discounts you enjoyed as a married couple (for instance, a multi-car discount).

If you’ll be sharing custody of teen drivers, check with your insurance company to find out whether you both need to list your teen on your policy-and factor that into any quotes you get.

5. Getting a Raise

Now that you’ve got a little extra cash in your pocket (and perhaps some financial benefits, like stock), it’s time to take another look at your policy. Consider upping some of your coverages, like bodily injury and property damage, to make sure that if an accident happens, your income (and growing savings) will be protected. These policies cover medical bills as well as legal fees if someone involved decides to sue. Putting a little extra money toward your premium today can pay off big time down the road.

During a major life event, there’s a lot to think about. If you need help figuring out how to handle the big changes (insurance-wise, that is), talk to your insurer to make sure you’re adequately protected-and getting the best deal possible.

Eric Madia is Vice President of Product Design at Esurance, where he is responsible for designing the company’s personal lines products. Eric has 23 years of experience in the industry, focused primarily on underwriting, pricing, and product innovation. You can follow him on twitter @Erictheactuary.

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