Geico vs. Costco

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, discount opportunities, coverage options, average rates and distinct incentives can all be worth considering. It may also be helpful to consider the pros and cons of 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?

Comparing Costco insurance vs. Geico to the national average for car insurance can offer a clear perspective for drivers weighing their insurance options. While specific average rate data for Costco members isn't available from Quadrant Information Services, Geico typically shows lower averages for both full and minimum coverage policies compared to the national average. For those interested in Costco's offerings, obtaining a personalized quote directly from the company is essential to compare potential costs against Geico's rates effectively. This step can help shoppers make well-informed decisions based on the most relevant pricing information available.

Geico vs. Costco: discounts

Both Geico and Costco have car insurance discounts that can help drivers save money on their auto policies. However, each provider has its own offerings and eligibility criteria. 

Discounts available from both carriers

Many of the discounts offered by both Costco and Geico reward safe driving and responsible vehicle maintenance, which can benefit both new and experienced drivers.

Here are some discounts available from both carriers:

• Multi-car discount: Customers who insure more than one vehicle can enjoy lower rates.
• Good driver discount: Drivers with no accidents or violations can qualify for reduced premiums.
• Defensive driving discount: Completing an approved defensive driving course may lead to savings on car insurance.
• Good student discount: Full-time students with good academic records can receive discounts on their insurance policies.
• Vehicle safety discounts: Discounts are available for cars equipped with safety features like airbags, anti-lock brakes and anti-theft systems.

Geico discounts

• Emergency deployment discount: For military members deployed in imminent danger zones.
• Federal employee (Eagle) discount: Available to active or retired federal employees.
• Membership and employee discounts: Discounts for members of over 500 listed organizations.
• New vehicle discount: For new vehicles three model years old or newer.
• Seat belt use discount: For consistently wearing seat belts while driving.

Costco discounts

• Costco member-only discount: Available exclusively for Costco members.
• Executive member benefits: Includes roadside assistance and lifetime renewability for auto policies.
• Premier safety discount: For households where all drivers have a clean record for four years.
• Garaging discount: Discount for vehicles parked overnight in a garage.

Geico and Costco telematics programs

Telematics programs, which monitor driving behavior to potentially lower insurance costs, are increasingly popular among car insurers. Geico's DriveEasy program is one such initiative that allows policyholders to earn discounts based on their driving habits. This program uses a mobile app to track driving behavior over time and will adjust your rates accordingly.

Currently, Costco does not offer a telematics program, so Costco members interested in these benefits would need to consider another insurer’s offerings for potential savings and personalized rates.

Geico vs. Costco: customer experience comparison

In the realm of customer experience, both Geico and Costco (through American Family Insurance), strive to offer convenient online services. These include comprehensive websites detailing coverage options and discounts, alongside tools for obtaining quotes and filing claims online. Geico, in particular, enhances its customer interface with a robust mobile app, enabling policyholders to manage their policies, file claims and make payments directly from their mobile devices. This feature offers a significant advantage in terms of accessibility and ease of use. Costco’s policies are unable to be managed via an app.

As for claims satisfaction, it’s worth noting that American Family, which underwrites Costco’s policies, ranked above average in J.D. Power’s 2023 U.S. Auto Claims Satisfaction Study Geico ranked below average. Unfortunately, without Costco's direct inclusion in the study, comparisons are less valid, but insights into American Family’s performance can provide some guidance on what Costco members might expect.

Customer complaints

The National Association of Insurance Commissioners (NAIC) Complaint Index is a metric for assessing an insurer's customer satisfaction relative to its size. This index compares the number of complaints an insurance company receives against its market share. A score of 1.00 represents an average number of complaints; scores higher than 1.00 suggest more complaints than average, while scores below 1.00 indicate fewer complaints. This index helps consumers gauge the reliability of an insurance provider and may influence their decision when choosing an insurer. Understanding this metric can provide valuable insight into how an insurer handles issues and customer concerns, which is essential for making informed insurance decisions.

Geico auto insurance customer complaints

Costco auto insurance customer complaints

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze May 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 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 coverage that meets each state’s requirements. Our base profile drivers own a 2022 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-based insurance scores: 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. Four states prohibit or limit the use of credit as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.

Age: Rates were calculated by evaluating our base profile with the ages 25-70 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

Bankrate Scores

Our Bankrate Score considers variables our insurance editorial team determined impact policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.