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Costco vs GEICO

You are legally required to have automobile insurance in order for your car to be driven on roads in the United States. You can’t do without it. And the rates, or premiums, you will pay for your car insurance are not usually set at a fixed price. Prices are variable and are determined by a variety of factors that insurers take into consideration. Insurance carriers price their policies in accordance with their predictions of how frequently customers may need to make claims.

And in order to make those predictions, they need to know a bit about you. They’ll want to know where you live, how long you’ve been driving, your safety record. They’ll want to know if you want to utilize basic coverage for your and your vehicle or want to insure yourself against a wider range of potential mishaps. Fire, theft, vandalism, emergency roadside service, temporary rental cars: these are all options for today’s consumer.

Why does this information matter to insurers? Well, industry data may indicate that there are more fender benders in congested urban areas than there are in suburban or rural locations. Data may show that that new drivers get into accidents at a higher rate than older drivers. Since more accidents means more claims, or payouts, Insurers price their products accordingly.

Let’s Look Into Costco

Costco is a well known so-called “big box” discount store that provides a no-frills shopping experience to its value oriented members. The store has, in recent years, started to offer car insurance to it’s members. However, it’s important for you to know that Costco uses a separate company, Ameriprise, to actually underwrite the policies they sell. Costco gives their own imprimatur, or reputation, to Ameriprise’s insurance.

Costco’s insurance is not available in every state, so you’ll have to research if you can avail yourself of their well known reputation for offering wholesale bargains. However, like purchasing directly from other carriers, you need to provide Costco with your personal information and your coverage preferences. Information from Ameriprise indicates that more than 300,000 Costco members have acquired car insurance through the plan. Costco incents its members to try the insurance by offering them additional discounts on other warehouse merchandise.

Costco may be no frills, but they are a savvy business entity intent on passing along low process to customers and may be worth exploring.

Will you get better pricing from Costco?

The price you pay Costco for your auto insurance is going to be related to the types of coverage you choose and the details of your profile data. Probability or actuarial tables that each underwriter utilizes will dictate what they charge. Remember the variable pricing of insurance carriers. You are most probably not going to pay what others do unless they exactly match your profile and coverages.

In order to be a smart shopper, obtain a free price quote from Costco. Ask if they provide multi-vehicle discounts if you’re looking to insure more than one car. Ask if they give discounts for professional affiliations like armed service membership.

Make inquiries, get quotes, make comparisons, be a smart shopper. Don’t pay any more than you need to.

Now, What About GEICO?

The Government Employees Insurance Company, or more commonly know as GEICO, has made itself known to most American consumers over the years with its series of cheeky, satiric advertising spots. A menagerie of animals ranging including camels, geckos, lobsters and a walrus, among others, have assured consumers that they can save money by spending just a little time researching GEICO’s prices.

The company employs over 40 thousand people on has estimated annual revenue of around $25 billion. They provide fifteen million policy holder auto coverage for more than 24 million vehicles. This volume of business places second on the list of automobile insurance providers.

GEICO originally started business in San Antonio, Texas in 1936. The founders, Leo Goodwin and his spouse Lillian, believed that the steady income provided to the federal workforce made them an ideal target market for insurance providers. Not only did these workers have steady jobs, they had the income to afford cars and were seen as a safer bet than many other market segments.

Car Insurance Provider Average 6-Month Premium
Costco$534
GEICO $747

How Can You Save Money with GEICO?

If you have more than one car, ask if GEICO give discounts for multiple vehicles. They probably do! Are you either currently a member of the armed services or a veteran? See if GEICO can provide affiliation discounts. Try to regularly monitor their prices to see if there are any seasonal discounts you can make use of. Be diligent in your consumer research and you can uncover the best bargains. But always know this: being a safe driver is the best way to get the low rates.

Costco vs GEICO – Who’s Will Cost Less?

Although Costco typically offers low, low prices for all its products, they do not currently offer their insurance product in every state. And the variable pricing nature of the auto insurance industry make it almost impossible to say with absolute certainty which of the two carriers would provide you with the best bargain solution for your car insurance needs. That’s why it’s important for you to shop around. Be a savvy consumer. Try to let carriers work against each other by getting comparable quotes for your coverage. Be smart and save money.

Costco GEICO
nti theft device discount Yes Yes
Bundling discount Yes Yes
Home owner discount Yes No
Military discount No Yes
Multi car discount Yes Yes, up to 25%
Paid in full discount No Yes
Safety device discount Yes Yes, up to 15%
Safe driver discount Yes Yes
Special employment discount No Yes
Student discount Yes Yes, up to 15%
Usage based discount No No

The Bottom Line for Car Insurance Savings

If you want to quickly identify car insurance vendors and easily aggregate and disseminate your insurance profile, come visit us at General.com. Our web site is ready to work for you as a tool to easily get you free price quotes. You can then see for yourself who is willing to give you the cheapest price for your business. Let us help you save money.

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