- January 15, 2018 - We’ve updated this review to address facts and policies that have changed since originally published. We also reformatted the presentation of information to more clearly display our research. GEICO’s financial scores have improved and we elaborated on their underwriting partnerships.
Our GEICO Review
GEICO partners with major companies in the industry to offer homeowners insurance, which means you’ll be paired up with one of these companies when you request a quote. While they do provide solid tools and coverage options, they don't offer many discounts commonly provided by other top providers in the industry. They also didn’t impress when it came to customer service, though your exact experience may vary according to which affiliate partner is underwriting your policy. If you have an existing contract with GEICO, pull a quote for their homeowners. Otherwise, their lack of unique discounts and average customer service left us less than impressed.
GEICO claims that its policies reveal how affordable homeowners insurance can be, “And with the many discounts available, you're likely to save even more on a home insurance policy.”
Is it True?
Compared to the top companies in the industry, GEICO’s homeowners insurance discounts are subpar. While they do offer discounts that can help you save, they only offer five in total while competitors like Allstate offer eleven. Bundling home and auto is one of the very few ways to save. Remaining claim-free won’t earn you any discounts, and a newly constructed or newly renovated home won’t lower your rates either. If you’re hoping to take advantage of any of these discounts, it’s probably a good idea to look at some other insurance providers who do offer them — like Amica or Allstate. GEICO also offers discounts for safety and preventative measures like fire alarms and sprinklers.
GEICO doesn’t provide its own homeowners insurance and, instead, partners with other home insurance providers. You don’t get a choice of which organization you’d like to get insurance from and are directed to whatever company GEICO has partnered with in your area. As such, they also aren’t scored on their customer service. Neither Consumer Reports nor J.D. Power can offer insight into GEICO’s homeowners service, because GEICO isn’t doing the actual servicing. Once you’re paired with an underwriter, you can check to see whether they were ranked or rated to gauge what claim filing and reimbursement may be like.
GEICO has received extremely high financial strength ratings from several organizations, including an A++ from A.M. Best, a Aa1 from Moody’s, and an AA+ from S&P. In fact, in our full review of homeowners insurance, we found GEICO had the strongest financial outlook. This is a good indication that GEICO will be around for the long term.
A Closer Look at Features
|AM Best FSR||A++|
|AM Best ICR||aaa|
|Standard and Poor's FSR||AA+|
|Best for||Those who already have insurance with GEICO|
|Not for||Customers eligible for many discounts|
|Number of discounts||5|
What Others Are Saying
- The Washington Post hosts an article from 1995 when news first broke about GEICO no longer selling homeowners insurance because it, “is too small to manage efficiently, and [GEICO] will concentrate on selling private automobile insurance.” At the time, homeowners accounted for just 6% of the company’s premiums. Since then, GEICO has expanded their underwriting partners from two, to just over 30.
- Allstate: Offers the largest volume of discounts (11), and a library of unmatched resources. It’s a great option for first-time home buyers looking to educate themselves with Allstate’s articles, infographics, and interactive tools that assess your regions risks and common claims.
- Progressive: Like GEICO, Progressive partners with other companies to underwrite their homeowners insurance. Options for discounts and coverage will vary by state as a result. They’ve earned an average customer service reputation and offer unique coverage that extends to watercrafts.
- Amica: Known for their customer service, Amica consistently ranks among the top carriers. With the highest scores from both J.D. Power and Consumer Reports, you’re more likely to be satisfied with claim handling and reimbursement. Plus, they offer nearly as many discounts as Allstate.
The Bottom Line
If you’ve got GEICO insurance for another service, absolutely pull a quote and consider the convenience of consolidated service. If not, it’s still worth getting a quote because shopping around is the best way to get a low price. When you’re paired with an underwriter, do some research on them before signing a contract.