GEICO Save 15 Quote on Car Insurance – But is it Really True?
GEICO an American auto insurance company says that 15 minutes can save you 15% on car insurance, GEICO save 15 quote to certain drivers who switching insurance companies. Knowing whether or not GEICO save 15 quote depends on your driving record and the kind of coverage you need. The best way to save money on insurance is to comparison shop online for free quotes.
Geico was established in 1936 in Texas by Leo and Lillian Goodwin. If you’ve ever wondered why the company name is usually in all capital letters, it’s because it was named the Government Employees Insurance Corporation, or Geico for short. The Goodwins established the company to provide auto insurance for federal employees and military members at reduced rates.
Geico motored along happily for a few decades, growing steadily over time. In 1956, a young Warren Buffet invested in the company while still a student at Columbia University. That would come to be important forty years later, when Buffett purchased all of Geico’s outstanding stock, and the insurance company became a subsidiary of Buffett’s Berkshire Hathaway.
Geico passed the million-policy mark in 1964. The company focused its resources on expanding its reach, and in 1993 made the decision to increase its advertising. This was the key to the Geico gecko, which debuted in 2000. (The gecko also has side gigs promoting conservation efforts.) In 2004, the “So simple a caveman could do it” campaign launched.
The company also uses the famous “Fifteen minutes could save you 15 percent or more” slogan. This idea of spending a little time to save a lot of money on auto insurance has been central to the company’s growth. Geico car insurance is available in all fifty states and the District of Columbia, and it offers a wide portfolio of insurance policies, no longer just auto insurance. In 2016, it became the second-largest insurer in the United States, ahead of Allstate and behind State Farm.
You might be asking yourself how it’s possible that every insurance company in America can save you $400 by switching. Why not just keep moving from insurer to insurer until you’re paying nothing?
Not Every Company Can Save You $400
If you read the fine print or listen with a cynical ear you may notice each commercial states, “of those consumers who switched.” These are the ones who saved the money.
Unfortunately, for the consumer, it means just those who switched saved money. There may have been thousands of people who got quotes hoping to save, and maybe only a few of them actually saved dime one.
Who Can Save Money?
Auto insurance companies all have different targeted risks they are willing to insure.
As we have discussed above, insurers want to provide quotes to as many people as possible, then hand pick the drivers they actually want to insure.
The people who may actually benefit from getting quotes are those who have not gotten into any accidents or received tickets in the past two or more years.
Insurers change their rates all the time. And for the past several years, many insurers have been reducing their car insurance rates for the drivers they want…typically those with good insurance scores and no tickets or accidents.
Bottom line; if you fit the characteristics outlined above, you could probably save some serious money by getting quotes and switching insurers.
The lesson here is to take every advertisement with a huge grain of salt…especially when dealing with insurance. They spend a lot of money on advertising each year.
If you think you may save, even after reading this article, the best way to truly comparison shop and ensure you’re getting great coverage at the best possible rate is to contact an independent insurance agent and have them quote you with multiple companies (as opposed to a captive agent, who can provide just one quote).
This might save you money over what you pay now and will certainly save you time at the very least.
Who Should Get Geico Car Insurance?
Geico is one of the cheapest car insurance companies in our study across the board. For nearly every driver profile we analyzed, Geico’s study rates were among the lowest. The one exception is the driver profile with a DUI conviction. For this profile, Geico has the third-highest representative rate.
GEICO save 15 quote | Geico Car Insurance Discounts
Geico auto insurance offers typical car insurance discounts, such as for insuring more than one vehicle or bundling auto and home insurance. They also have discounts for vehicle equipment, like air bags or an anti-theft system. Like other insurers, they give discounts for good driving, seat belt use, and being a good student, and they partner with large employers and some organizations to offer lower rates. After five years of accident-free driving, Geico drops most rates by as much as 26 percent.
Geico rewards drivers who take extra steps to stay sharp on the streets. They give discounts to motorcyclists who complete a safety course, and drivers over 50 who take a defensive driving course can earn a discount with the company’s Prime Time contract.
Other Types of Policies From Geico
Geico offers coverage for a wide range of vehicles, including ATVs, motorcycles, boats, and RVs. They also have policies for ride-share drivers who take passengers via services like Lyft or Uber. And they have insurance for drivers headed to Mexico, where a local policy is required
GEICO save 15 quote – Where the 15% Figure Comes From
Another way that GEICO and other insurance companies can afford to offer discounts is by selectively choosing which drivers to insure. When a driver submits for a quote online or over the phone, their risk factors are calculated and their rates are compared against other insurance companies for the same group of people. This means that if a company wants to attract a specific demographic of drivers, it needs only to see what other insurance companies are charging that group and reduce the price for that population of drivers.
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For example, if an insurance company wants to primarily attract married drivers in their 40s without teenaged children, it will determine what other insurance companies are charging for policies for that demographic. The company will then reduce its rates for people who qualify and keep other rates the same.
The general amount of the discount in this situation is 15%, which is why GEICO can make the claim that drivers who switch may be able to get that rate. This reduced cost is only applicable to people within the insurance company’s chosen demographic; other drivers may pay more for insurance.
GEICO save 15 quote – Does Everyone Pay Less for Insurance With GEICO?
Undoubtedly, many people get cheap policies through GEICO. Others may quickly discover that their rates are higher than they would be through another company, however, and in some cases the difference is substantial. Because all insurance companies handle various factors differently, there’s no way of knowing in advance what company will charge more for an individual driver.
For example, GEICO pays a lot of attention to an applicant’s credit score. All insurance companies check a driver’s credit, but GEICO tends to charge a higher rate to drivers with bad credit than some other insurers. Other companies will charge higher rates for age, driving history, type of vehicle or other factor.
When you submit for a quote online, you will be asked to supply a lot of information about yourself and your vehicle. This is used to match you with the best companies; the more specific your information, the more accurate the quote will be. Bear in mind however that the initial quote you receive online will not necessarily be the final price you pay for insurance. The online quote does not take into account your driving history or credit score, so your final rates may be higher.
For example, if you submit the quote form and are within one of the selective demographics that GEICO offers a discount to, your initial quote will be low. Once they review your application and check your driving history and credit report, however, the final rate they offer you may be higher. Be sure to discuss this with the representative when they call, and don’t make any decisions about insurance coverage until you’ve spoken with multiple companies to ensure you’re getting the best rates.
When you speak with a representative, you can also ask about additional discounts that may not have been evident from the quote form. For example, if you drive a limited number of miles each year or have taken a defensive driving course, you can bring that up and possibly reduce the cost of your insurance. By working with the representative, you can obtain the best cost on coverage; it may not be 15% less than the competitors, but it should fit into your budget.