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
Reviewed by Kathleen Flear
If your GEICO
car insurance
rate has gone up, it could be the consequence of changes to your driving record, vehicle, or place of residence. Overall, rate hikes have been prevalent among GEICO policyholders in 2022 as the company continues to renew customer policies at higher costs. We all know that an accident or traffic ticket can cause insurance rates to rise—but what about when you’re doing everything right? Sometimes, your insurance premium will go up even if your policy stays the same. If you’re looking for answers to a recent rate hike on your GEICO auto insurance, we’ve got you covered with a list of possible reasons.
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If your GEICO car insurance rate has gone up, you’re probably scratching your head a bit. There are quite a few reasons why your auto insurance rates may be raised, from changes in your coverage level to your marital status.
Below, we’ve listed 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 insurance policy
- Your driving pattern or mileage has changed
- You’ve experienced other life changes (e.g., getting married, change of address, etc.)
- 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.
Any of the reasons listed above (or a combination thereof) could result in changes to your rates—including a price hike. In the following sections, we take a closer look at the factors that impact your insurance rates.
Reasons GEICO may have increased your car insurance rate
GEICO may raise your rates 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
, can 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 a 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.
MORE: How to get car insurance discounts
New car
The make and model of your vehicle tells 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 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.
What factors affect GEICO insurance rates?
There are a couple of 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 greater minimum auto insurance requirements
than others, which can contribute to higher premium costs. 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, as their age group also is considered riskier on the roads.
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
. Vehicle safety and security features
The make and model of your vehicle matters for more than just helping GEICO estimate the cost of potential repairs. 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.
Key Takeaway Your GEICO car insurance rates may rise due to factors in your control—like increasing your coverage or getting into an accident—or larger economic patterns like inflation that put pressure on companies to raise their prices.
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. Here are just a few tips:
- Discounts: Most insurance companies offer a variety of discounts to eligible drivers, which can collectively help decrease your overall premium.
- Safe driving: Watching the way you drive won’t just help keep your premium low by reducing the likelihood of accidents or traffic stops—some insurance providers offer usage-based programs that can earn you discounted rates for safe driving practices.
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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.
