Geico vs Costco

Geico was founded in 1936 and currently holds 12.5{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7} of the auto insurance market share. Geico offers standard coverage options and incentives for general drivers and is available in all 50 states. The company also offers other types of insurance policies outside of auto insurance, but it does not underwrite these policies and instead partners with a number of other insurance companies for policy underwriting instead.

Costco was founded in 1976 and offers car insurance in 44 states and the District of Columbia through a partnership with American Family, which underwrites Costco auto policies through the company Connect. American Family currently holds 2.1{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7} of the private passenger auto insurance market share. Costco car insurance offers standard coverage options and is tailored towards Costco members, which requires membership for eligibility.

Our verdict

Costco and Geico both offer standard auto insurance coverage options, but Costco’s policies are not available in every state, are limited to members of the warehouse retailer and the average rates for its policies are unavailable. On the other hand, Geico is available in all 50 states and Washington, D.C., and the company tends to be ranked highly by third parties while offering low average rates for car insurance coverage.

Geico vs. Costco comparison

When comparing Geico vs. Costco for auto insurance, it may be helpful to weigh a number of different variables. For instance, discounts, coverage options, average rates for different incidents and unique incentives can all be worth considering. It may also be helpful to consider the unique pros and cons for each provider to determine which may be the best fit for your needs.

Geico pros and cons

Costco pros and cons

Is Geico cheaper than Costco?

Costco’s average rate data is not available, making it difficult to compare Geico and Costco’s average costs for car insurance. It may instead be helpful to compare the national average costs of car insurance against Geico’s average car insurance rates to find out how they stack up. Based on our comparison of average rate data from Quadrant Information Services, Geico generally has lower averages for both full and minimum coverage policies compared to the national average.

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Geico is generally cheaper for drivers with poor credit

Not all states allow insurance companies to consider credit scores when calculating car insurance rates. In particular, California, Hawaii, Maryland, Massachusetts and Michigan outlaw the use of credit-based insurance scores to determine rates. In other states, credit scores can impact the cost of car insurance. When compared to the national average, Geico has lower average rates by credit score in each category.

Geico is generally cheaper for young drivers

Younger drivers have less experience behind the wheel, which means that they are statistically more likely to get into an accident on the road. In turn, young drivers tend to pay the highest average rates for car insurance in most states to compensate for the higher risk of insuring them. When compared to the national average, Geico’s average rates tend to be lower for young drivers in several age groups.

*Rates for young drivers on their parent’s policy

Geico is generally cheaper for adult drivers

Average car insurance rates tend to go down for drivers as they get older and gain more experience behind the wheel. Compared to the national average, Geico tends to offer lower average rates for adult drivers.

*Rates are for drivers on their own policy.

Geico is generally cheaper for high-risk drivers

Speeding tickets, accidents and other incidents can have a significant impact on the cost of car insurance. Compared to national average rates, Geico generally offers lower average rates for high-risk drivers. While average DUI rates are outlined below, it’s important to note that not all companies will offer coverage to drivers with a DUI on their record.

Geico vs. Costco: Discounts

Both Geico and Costco offer car insurance discounts that can help drivers save money on their auto policy. However, each provider offers unique discounts. Here are the discounts you can get through Costco auto insurance vs. Geico:

Geico unique discounts

• Federal employee discount: Geico is one of the few insurance companies that offers a potential discount for federal government employees.

• Military discount: Geico customers who are active duty military service members may qualify for a discount.

• Membership/employee discount: Drivers may get a discount on their Geico policy if they belong to certain membership groups or work for a participating employer.

Costco unique discounts

• Premier safety discount: Drivers who have a perfect record with no traffic violations, accidents or claims within the past four years may qualify for a discount.

• Garaging discount: If you keep your car in a garage when it is not in use, Connect may give you a lower premium.

• Education discount: Connect offers potential savings for students who complete a four-year degree program. This also applies to students who are insured on their parent’s policy.

Geico vs. Costco: Customer experience comparison

Geico and Costco’s Connect by American Family both offer an online experience with websites that include information about coverage options and discounts, as well as online quote tools and support for online claims. Geico also offers a mobile app that allows policyholders to manage their policy, file claims, make payments and more. If you have Costco insurance, you can only manage your policy online.

Frequently asked questions

• • Do Geico and Costco offer homeowners insurance?

    Both companies offer home insurance policies, but neither company underwrites its homeowners policies. American Family underwrites the homeowners insurance policies sold by Costco. Geico, on the other hand, works with several insurance companies, and the companies you may work with will depend on your location.

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  • What is the best car insurance company?

    The best car insurance company is different for every driver. Some car insurance carriers are known for low premiums, some are great for customer service and others stand out for their coverage options. The only way to find the best company for you is to shop around and compare providers using your own criteria.

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  • How much does car insurance cost?

    In the United States, the average cost of car insurance is $2,014 per year for a full coverage policy. However, auto insurance premiums are personalized based on factors like your age, state, credit score (in most states), driving history and the type of car you have.

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  • Is car insurance legally required?

    Yes, car insurance is legally required in almost every state. In New Hampshire, drivers can opt out of car insurance unless they need an SR-22 while Virginia drivers can pay an uninsured motorist fee in lieu of purchasing car insurance. In many states, you also have the ability to satisfy financial responsibility in other ways, like securing a bond.

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Methodology

Bankrate utilizes Quadrant Information Services to analyze 2022 rates for ZIP codes and carriers in all 50 states and Washington, D.C. 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 coverages that meet each state’s requirements. Our base profile drivers own a 2020 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.

Credit: Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base), and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. The following states do not allow credit to be a factor in determining auto insurance rates: California, Hawaii, Massachusetts, Michigan, Washington.

Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. 16-year-old rates were factored as the added cost to their parents’ policy; 18-year-old rates were calculated as drivers who rent their primary residence. The following states do not allow age to be a factor in determining auto insurance rates: Hawaii

Incident: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction (BAC of >= .08) and lapse in coverage.

Bankrate Score

Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for drivers to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.

To determine how well the best car insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moody’s had the most impact on the companies’ Bankrate Scores. As price is a common consideration for drivers, we analyzed quoted premiums based on 40-year-old male and female drivers with a 2020 Toyota Camry. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which drivers may compare each provider.

While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.