Geico, which stands for Government Employees Insurance Company, is owned by the international holding company Berkshire Hathaway. Geico has over 17 million auto insurance policies in force and insures over 28 million vehicles across the country. Geico was founded in 1936 and holds 14% of the total market share, making it the second largest auto insurance provider in the United States.
While not a traditional insurance company, wholesale retailer Costco offers a member-only insurance policy through CONNECT by American Family. CONNECT entered the market when American Family acquired Ameriprise Insurance in 2019 and underwent a rebranding. The company offers a few insurance policies, with an emphasis on affordable home and auto coverage.
Geico vs Costco Insurance: Auto Insurance Price Comparison
The table below includes Quadrant Information Services third party ratings and average premiums for Costco auto insurance through Geico. One caveat is that Costco insurance rates mirror American Family rates, as Costco insurance is provided by the CONNECT division of the company. This means that the average rates for American Family may or may not reflect the rates that a Costco member will receive through CONNECT.
In addition to third-party ratings, we also assigned each company a Bankrate Score, a score of 0.0 to 5.0. To determine this score, Bankrate rated the company on different categories (average annual rates, third party ratings, hedges offered, discounts offered) and used a consistent methodology to ensure that each company is rated against the same criteria.
|Auto insurance company||Discount rate||AM Best||JD Power||Average annual premium for minimum coverage||Average annual premium for full coverage|
|Geico||4.6||A ++||871/1000||$ 433||$ 1,405|
|Costco||3.7 *||A-||862/1000||N / A||N / A|
* Costco offers insurance through CONNECT, a division of American Family, ratings of which are provided here
Rates by credit score
Geico and Costco will use your credit score to determine your premium, but it depends on where you live. The only states where it is illegal for insurance companies to use credit scores to calculate insurance rates are Hawaii, California, Massachusetts, Michigan, and Washington. In the table below, you can see the average premiums for Geico and the national average based on credit score – rates are not available for Costco but they would be similar to the national average:
|Auto insurance company||Poor||Mean||Good||Excellent|
|Geico||$ 1,978||$ 1,505||$ 1,405||$ 1,312|
|national average||$ 3,873||$ 1,865||$ 1,674||$ 1,487|
Rates by age
Young drivers pay the highest rates for auto insurance because they lack experience on the road and are more likely to have an accident. The table below highlights the average annual rates for several age groups. While rates are not available for Costco insurance specifically, its rates will likely be similar to the national average rate based on age.
|Auto insurance company||16 years old*||18 years old||25 years||30 years||40 years||60 years|
|Geico||$ 1,897||$ 3,672||$ 1,674||$ 1,465||$ 1,405||$ 1,326|
|national average||$ 2,531||$ 5,243||$ 2,108||$ 1,850||$ 1,674||$ 1,544|
* Cost 16 years old when added to parents policy, 18 year old tenant
Rates per driving record
Drivers with clean criminal records pay the lowest rates for auto insurance, and drivers with a history of accidents, speeding tickets, or DUI convictions pay much higher rates. The table below compares Geico’s average rates to the national average based on driving record. While rates aren’t available for Costco insurance, expect average premiums to match the national average.
|Auto insurance company||Blank driving record||Speeding||Accident||Conviction for driving while intoxicated|
|Geico||$ 1,405||$ 1,734||$ 1,971||$ 3,064|
|national average||$ 1,674||$ 2,062||$ 2,311||$ 3,139|
Geico vs Costco insurance: discounts
Geico and Costco both offer auto insurance discounts that can help drivers save money on their auto policy. However, each vendor offers unique discounts. Here are the discounts you can get with Costco auto insurance versus Geico:
- Discounts for federal employees – Geico is one of the few insurance companies to offer a potential discount to federal government employees.
- Military discount – Geico customers who are active military service members may benefit from a reduced premium.
- Member / employee discount – Drivers can get a discount on their Geico policy if they belong to certain member groups or if they work for a participating employer.
- Top-notch safety discount – Drivers who have a perfect record, without traffic violations, accidents or complaints during the past four years can benefit from a reduction.
- Garage discount – If you keep your car in a garage when it is not in use, CONNECT may grant you a lower premium.
- Education discount – CONNECT offers potential savings to students who complete a four-year degree program. This also applies to students who are insured on their parents’ policy.
Geico vs Costco Insurance: Comparison of Online and Mobile Experience
Geico and CONNECT by American Family both have good online experiences. Based on our comparison, we found that Geico’s website is slightly easier to navigate and has more information on coverage options and discounts. It should also be noted that Geico and CONNECT both have an online quotation tool and support online claims.
In terms of the mobile experience, Geico has one of the top rated mobile apps that allow policyholders to manage their policies, file claims, make payments, and more. If you have Costco insurance, you can only manage your policy online.
- App Store (4.8 stars) – Geico’s free iOS app allows policyholders to file a claim, make payment, request roadside assistance, view ID cards, and get service reminders. Overall, customers are happy with the Geico app, with positive reviews for the user interface, ease of use, and frequent updates.
- Google Play Store (4.8 stars) – Thanks to Geico’s Android mobile app, users have access to all the same features as those included in the iOS app. Customers say the app is easy to navigate and convenient. However, some users have complained about connection and payment issues.
If you’ve purchased Costco insurance through CONNECT by American Family, you can manage your policy through the online customer portal. You can pay your premium, request your declaration page or insurance binder, and upload your ID cards. To make changes to your policy, you will need to contact an agent.
Frequently Asked Questions
What is the best auto insurance company?
The best auto insurance company is different for every driver. Some auto insurance companies are known for their low premiums, some are great at customer service, and others stand out for their coverage options. The only way to find the best business for you is to shop around and compare vendors using your own criteria.
How much does auto insurance cost?
In the United States, the average cost of auto insurance is $ 1,674 per year for a full coverage policy. However, auto insurance premiums are personalized based on factors such as your age, condition, credit score (in most states), driving history, and the type of car you own.
Is auto insurance legally compulsory?
Yes, auto insurance is legally required in almost all states. The only state that does not require traditional auto insurance is New Hampshire. In many states, you also have the option of assuming financial responsibility in other ways, such as securing a bond.
Bankrate uses Quadrant Information Services to analyze 2021 rates for all zip codes and carriers in all 50 states and Washington, DC Rates shown are based on a 40 year old male and female driver with a clean driving record , good credit and the following comprehensive coverage limits:
- $ 100,000 liability for bodily injury per person
- $ 300,000 in civil liability for bodily injury per accident
- Civil liability for property damage of $ 50,000 per accident
- $ 100,000 in bodily injury caused by an uninsured motorist per person
- $ 300,000 in uninsured bodily injury per accident to a motorist
- $ 500 collision deductible
- Global deductible of $ 500
To determine the minimum coverage limits, Bankrate used minimum coverage that meets the requirements of each state. Our basic profile drivers own a 2019 Toyota Camry, commute five days a week and cover 12,000 miles a year.
These are sample rates and should be used for comparison purposes only.
Credit: The rates have been calculated based on the following insurance credit levels assigned to our drivers: âpoor, average, good (basic) and excellentâ. Insurance credit levels take your official credit scores into account, but are not solely dependent on this variable. The following states do not allow credit to be a factor in determining auto insurance rates: California, Hawaii, Massachusetts, Michigan, Washington.
Age: The rates were calculated by evaluating our baseline profile with ages 18-60 (baseline: 40) applied. The 16-year-old rates were factored in as the additional cost of their parents’ policy; Rates for 18 year olds were calculated as drivers renting out their primary residence. The following states do not allow age to be a factor in determining auto insurance rates: Hawaii
Incident: The rates were calculated by evaluating our basic profile with the following incidents applied: clean criminal record (base), responsible accident, single speeding ticket, single conviction for driving while intoxicated (TA of> = 0, 08) and termination of coverage.
Bankrate Scores primarily reflect a weighted ranking of industry standard ratings for financial strength (AM Best, S&P, Moody’s) and customer experience (JD Power, NAIC), in addition to the average rates reported by Quadrant Information Services. The JD Power studies used include the 2020 Auto Insurance Study and the 2020 Auto Claims Study. In-depth research and analysis by our Bankrate editorial team provided a secondary assessment of online and mobile resources and options for policy management of each insurer, which also contributed to the overall ratings.