GEICO Auto Insurance
Geico auto insurance is a leader in the low-cost auto insurance market. After being purchased by Warren Buffett decades ago, the company has grown by leaps and bounds and now has a massive position in the no-frills business of auto insurance.
Going state minimum
The majority of Geico’s customers are those who currently use state minimum coverage to stay within legal levels for auto insurance. Those who are best suited for state minimum usually fall in the following categories:
- Inexperienced drivers – Inexperienced drivers are likely to be charged more for the same amount of insurance as those who have more driving experience. As such, maintaining “adequate” coverage for experienced drivers is inexpensive, whereas an inexperienced driver may pay $100 or more for the same coverage.
- No or few assets – Insurance is a product largely intended to protect the wealth you have from bankruptcy, and lawsuits. However, those who have very little assets have very little to lose, and very little that needs to be shielded with insurance. Thus, state minimum insurance is an excellent solution.
- Low income – Low income drivers will find that state minimum coverage is affordable enough to warrant having their own personal mode of transportation. Geico’s auto insurance, which is billed monthly, semi-annually, or annually, is inexpensive enough that most everyone is able to afford it.
- Bad driving history – A history of speeding tickets or other traffic violations is sure to boost your annual auto premiums. However, to save money, some drivers find that they can cut back on their coverage of boost their deductibles to save cash in the long-run.
Not just state minimum
Geico isn’t an entirely state minimum insurance company; it also offers customers the ability to increase or decrease specific benefits with each policy.
This is one item where most drivers tend to accept more coverage, since the last thing any driver wants to worry about is not having enough money to pay for their medical bills, or the medical bills of another driver. Most states have minimums of $25,000, but a few nights’ stay in a hospital will quickly meet and exceed this threshold, at which point the bills start accumulating in the name of the driver at fault.
Collision insurance covers work done to your own vehicle in the case of an accident. Such insurance is mandated for cars which are currently leased or financed, but this is often one of the first items to go once a car has lost much of its value. Every driver thinks they’re a great driver, so why would they insure against their own fault?
Some states mandate that drivers carry this insurance, while others do not. Uninsured motorist insurance is insurance purchased to protect against the risk that you are party to an accident involving someone who does not have insurance, and cannot pay for your expenses. Generally, the insurance company pays you first before taking up legal action against the at fault driver to recover any damages.
Another variant of this insurance type is the underinsured motorist coverage, which covers the injuries or damages to the driver not at fault for the amount that exceeds the other driver’s own car insurance. Both under- and uninsured motorist insurance are inexpensive, and this isn’t an item where most would want to start cutting. While the risks are few that you’ll ever need it, the small price you pay for under- and uninsured motorist coverage will definitely come in handy should it ever be necessary. This insurance is also used to protect drivers against hit-and-run incidents in which the at-fault party flees the scene.