NAIC Complaint Index
0.69
Very good
AM Best Rating
A++
Superior
Avg. Full Coverage
$1,731
16% below avg
J.D. Power Claims
Below Avg
Mixed
Owner
Berkshire
Hathaway
📋 Our Verdict
✓ What GEICO Does Well
- • Genuinely cheap rates—often 15-25% below average
- • Best NAIC complaint ratio (0.69)
- • A++ financial strength
- • Fast, easy online quotes
- • Great military/federal employee discounts
✗ Where GEICO Falls Short
- • No local agents—digital only
- • Claims satisfaction below average
- • Customer service complaints (long holds)
- • No gap insurance
- • DriveEasy telematics has issues
🐃 Warren Buffett's Cash Cow
GEICO is owned by Berkshire Hathaway, Warren Buffett's holding company. Here's what that means for you:
The "Float" Business Model:
When you pay your premium, GEICO doesn't spend it immediately. They hold that money (called "float") and invest it. GEICO generates $40+ billion in float for Berkshire Hathaway.
- • Your premium gets invested in stocks, bonds, businesses
- • GEICO profits from investment returns, not just underwriting
- • This is why they can offer lower rates—they make money on the float
What this means for you: GEICO's low rates are real, backed by a massive parent company. They're not a fly-by-night operation—A++ rating means they'll pay claims.
📞 Customer Service Reality
The trade-off for cheap rates? Customer service can be frustrating:
Common Complaints:
- • Long hold times on phone
- • Constantly redirected to app
- • Rate increases feel sudden
- • Claims processing can be slow
What Works Well:
- • Online quote in 5 minutes
- • App for policy management
- • Digital ID cards
- • Simple policy changes online
Reality check: GEICO's model is built for people who don't need hand-holding. If you want to call an agent, GEICO isn't for you. If you're comfortable doing everything online, it's great.
💰 Pricing Reality
GEICO is consistently one of the cheapest major insurers:
| Coverage Type | GEICO Avg. | National Avg. | Savings |
|---|---|---|---|
| Full Coverage | $1,731 | $2,065 | -16% |
| Minimum Liability | $517 | $650 | -20% |
Best Discounts:
- • Military: up to 15%
- • Federal employee: up to 12%
- • Multi-vehicle: up to 25%
- • Good student: up to 15%
- • Airbags: up to 40% off med pay
- • Defensive driving: varies
⚠️ What GEICO Doesn't Offer
Notable omissions in GEICO's coverage options:
- ❌ No Gap Insurance — If you're upside down on a car loan, you need this from elsewhere
- ❌ No Local Agents — Everything is phone/online
- ⚠️ Limited Home Insurance — They sell policies from third parties, not their own
If you need gap insurance, you'll have to add it from your lender or another provider—dealerships charge 10-30x more than adding to your policy elsewhere.
🎯 Who Should Use GEICO?
✓ Good Fit If You...
- • Want the lowest price, period
- • Are comfortable with online/app
- • Are military or federal employee
- • Have simple insurance needs
- • Don't mind self-service
✗ Bad Fit If You...
- • Want a local agent relationship
- • Need gap insurance
- • Prefer phone over apps
- • Want bundled home insurance
- • Need hand-holding during claims
The Bottom Line
GEICO delivers on its promise: genuinely cheap rates backed by Berkshire Hathaway's A++ strength. The 0.69 NAIC complaint index is the best among major insurers. The trade-off is no local agents and sometimes frustrating customer service. If you're comfortable handling everything online and just want to pay less, GEICO is hard to beat. If you want personal service or need gap insurance, look elsewhere.