Why Did My GEICO Car Insurance Rate Go Up?
If your GEICO auto insurance rate has gone up, it could be the result of changes to your vehicle, driving record or history, or more.
Written by Kathryn Mae Kurlychek
Edited by R.E. Fulton
If you recently had a change to your driving record, vehicle, or place of residence, it could explain the increase in your GEICO
car insurance
rate. However, GEICO has been renewing policies at higher rates across the board in 2022 and 2023 in response to industry changes and inflation. - Overall, rate hikes have been prevalent among GEICO policyholders in 2022 and 2023 as the company continues to renew customer policies at higher costs.
- Your GEICO rate may have gone up if you experienced a major life change, were involved in an accident, adjusted your coverage level, etc.
- Inflation nationwide has also affected GEICO insurance rates across the board.
- Overall, rate hikes have been prevalent among GEICO policyholders in 2022 and 2023 as the company continues to renew customer policies at higher costs.
- Your GEICO rate may have gone up if you experienced a major life change, were involved in an accident, adjusted your coverage level, etc.
- Inflation nationwide has also affected GEICO insurance rates across the board.
Why did my GEICO insurance go up in 2023?
Like most insurance companies, GEICO has been renewing policies at higher rates in 2022 and 2023 in response to rising car repair costs across the insurance industry. Your rate increase could be a reflection of that broad trend—or you might have had a recent change to your insurance profile, such as a change in your driving patterns or address.
There are just a few of the most common reasons your car insurance rate is likely to rise:
- You purchased a new vehicle of a different make/model
- You increased the coverage levels of your auto insurance policy
- Your driving pattern or mileage has changed
- You were involved in an accident or traffic infraction
If you previously paid your car insurance premiums in full but recently made the decision to pay in monthly installments, this could also lead to increased insurance rates. GEICO typically offers insurance discounts to customers who opt to pay their annual premium all at once.
Reasons GEICO may have increased your car insurance rate
A rate change can happen for a variety of reasons, either for factors in or out of your control. If you’re struggling to pinpoint what could be the cause of an increased rate, ask yourself if any of the following have changed:
Coverage level
Adding additional coverage to your policy, such as increasing your
minimum car insurance limits
or changing from liability-only to a full-coverage policy
, will cause your rates to go up. The good news is, you can check the details of your policy—including any coverages you’ve paid for—at any time by logging into your GEICO account.
Discount eligibility
GEICO offers
a range of discounts
to customers, which can help bring down the average cost of your insurance coverage. Discounts are a wonderful thing, but you need to remain eligible for them. If you’ve lost eligibility for a discount you were receiving (e.g., you just filed an insurance claim for a collision and lost your
safe driver discount
) or if a discount suddenly becomes unavailable, you could face an unexpected raise in your insurance rates. New car
The make and model of your vehicle tells car insurance companies a lot more than you think. The make and model of your car indicate how much it would cost the insurance company to repair or replace it—but that’s not the only information it can reveal.
Certain vehicles may include a higher number of safety features or be popular targets for theft—and these facts are just as important for insurers to know when adjusting your rates. That’s why your car insurance policy may increase or decrease in cost whenever you
switch insurance to a new vehicle
. Driving history
Changes to your driving history can also have a negative effect on your rates. Getting into an at-fault accident, receiving a speeding ticket, or receiving another traffic violation (like a
DUI
) can seriously impact what you pay for coverage. Not only will most car insurance companies (including GEICO) raise your rates following a ticket or claim, but you may also lose discounts (such as “Good Driver” or “Accident-Free” discounts) for which you no longer qualify due to having filed the claim.
Pro Tip Many auto insurance companies, including GEICO, offeraccident forgivenessinsurance for eligible drivers, which can help you avoid increases in your insurance premium following your first at-fault accident.
Life changes
Let’s say you’ve been doing everything right—no accidents, same car, same coverage. In that case, a life change could be the culprit for your increased insurance bill.
Insurance rates can vary depending on your location, even if you don’t switch providers. Where you live plays a big part in determining the type of insurance risks you’re most likely to experience. If you’ve just relocated from rural
Illinois
to bustling Los Angeles
, for example, you’re likely to face an increased rate as a result of risk factors like higher population density, crime rates, and tourist drivers on the road. And moving isn’t the only life change that matters. Getting married, getting your driver’s license, or turning a certain age can also impact your rates.
Likewise, if your commute has changed, you could face increased insurance costs as a result. The more miles you drive and time you spend on the road, the higher your insurance rates are likely to be.
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What factors affect GEICO insurance rates?
GEICO’s often held up as the cheapest car insurance company—but that’s not true for every driver. There are several factors that can influence your GEICO insurance rates, including where you live, your driving record and experience, and the make/model of your vehicle.
Location
Car insurance rates can vary significantly depending on where you live. For example, urban drivers tend to pay more for auto insurance due to increased traffic, population density, and even property crime rates, while coastal residents may see increased premiums thanks to higher risks of flood damage.
On top of variable risk factors, certain states—such as
New Jersey
, North Carolina
, and California
—have lower minimum auto insurance requirements
than others, which can affect average rates. Driving experience
Your level of experience behind the wheel can also contribute to your annual auto insurance rates. Young drivers tend to lack real road experience, which puts them at a higher risk for accidents and collisions.
On the other hand, drivers turning 65 or entering their senior years are likely to see a rate increase due to slower reaction times, vision changes, hearing changes, average injury recovery times, and the increased cost of medical bills.
Driving record
Like many insurance companies, GEICO is likely to increase your annual rate following a ticket or traffic violation—or offer you higher rates upfront if blemishes already exist on your
driving record
. Credit score
Insurance companies use something called a “credit-based insurance score” to help calculate your premium. It’s based on your credit rating, and drivers with lower credit scores tend to have higher premiums to account for an anticipated higher rate of claims.
Vehicle safety and security features
The make and model of your vehicle matters for more than just helping GEICO estimate your potential repair costs. Certain cars also come with built-in safety measures that can reduce insurance risk factors, helping to lower the rate you pay for insurance.
Inflation
Unfortunately, broader economic patterns may also impact your car insurance rates.
Many major providers have been increasing rates
to keep up with national inflation levels, meaning that no matter how carefully you drive, your rate may be increased for the near future.Expert Tip Your GEICO car insurance rates may rise due to factors in your control, but if you can’t get a straight answer from the company as to why they went up, contact an insurance regulator in your state.
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How to lower your GEICO car insurance rate
If you’re facing a sudden increase in your auto insurance premium, don’t panic. There are ways to keep your car insurance costs low, including shopping around for a new insurance provider.
If your GEICO insurance rate recently went up, compare rates with other major companies, such as Allstate and Progressive, or look for quotes from a smaller regional insurer like Mercury, Plymouth Rock, or Erie.
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Did GEICO rates go up in 2022?
Yes, in some states. GEICO customers across at least seven states experienced rate hikes in 2022, and policyholders also faced higher renewal costs from the company.
Does GEICO raise rates after 6 months?
It depends. GEICO may increase or decrease your insurance rate when your policy comes up for renewal. In some cases, that’s every six months—but if you signed up for an annual plan, your renewal won’t come until 12 months, at which point your rate may be adjusted depending on your driving record, location, and more.
