Geico is well known for offering a wide range of insurance options at an affordable price. But compared to other providers, Geico’s renters insurance policies are average.
Basic renters insurance policies from Geico include personal property, personal liability and living expenses coverage. Additional coverage includes options for stocks, bonds, fine jewelry, business property or other valuable items. Like most renters insurance policies, Geico will pay to repair or replace your belongings if they are damaged by fire, smoke, vandalism, theft, extreme wind and water.
The specs
| Price | Varies by state, type of home and personal factors |
| Best for | Renters looking for low-cost premiums |
| Not for | Renters who place high value on customer service |
| States served | 50 |
| Discounts |
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| AM Best Rating | A++ |
| Standout features |
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The claim
Most people are familiar with Geico’s signature catchphrase, “15 minutes could save you 15 percent or more on car insurance.” But if Geico is preaching steep savings for auto insurance, the same claim should be true for other types of insurance it offers.
Is it true?
It’s difficult to tell how accurate this money-saving claim really is without doing a head-to-head comparison of Geico’s quotes against other providers. The other sticking point of this claim is that insurance quotes vary dramatically based on a number of factors—the state you live in, your credit score, your claims history and even your gender and marital status.
Geico is known for offering more affordable premiums than other providers. However, it’s hard to believe that every person who uses Geico insurance is paying 15 percent less than they would with another insurer. Depending on their previous insurance company, some people may be able to save 15 percent or more, but some might save less or even pay more.
When we look at renters insurance specifically, another reason why it’s difficult to validate Geico’s claim is because the company hasn’t been included in J.D. Power’s U.S. Renters Insurance Study for the past several years. The last time Geico made the list was in 2016, when it received 3 out of 5 stars for overall satisfaction, which is considered average.
The fact that the company has been absent from J.D. Power’s study in recent years reinforces the fact that Geico probably doesn’t provide the same level of quality, price and service other insurance companies do in the renters insurance category.
Our deep dive
Here is what you can expect to get from Geico’s renters insurance policy:
- Personal property coverage: Geico’s personal property coverage protects your belongings if they get damaged or destroyed by a covered peril, including fire, smoke damage, vandalism, theft, wind and water damage.
- Personal liability coverage: If you accidentally damage someone else’s home or belongings, your personal liability coverage will help you pay for the repairs. It will also cover someone’s medical bills if they were to get injured in your home.
- Additional living expenses coverage: Should your home get damaged or destroyed in a covered peril and you have to live elsewhere, Geico will reimburse your hotel and restaurant bills until you have a permanent residence.
- Replacement cost coverage: Instead of paying actual cash value to replace your items, which factors in depreciation, Geico uses replacement cost coverage to reimburse you for losses.
- Limited discounts: Geico only offers a few ways to save on your renters insurance—bundling your policies and having certain safety features in your home, like fire alarms and sprinklers.
- Personal property calculator: With Geico’s personal property calculator, you can estimate the total value of your personal belongings in order to determine how much coverage you should purchase.
- Extra coverage for valuables: Geico offers additional insurance coverage for expensive items, like fine jewelry, coin collections, sporting equipment and specialized electronics. This coverage comes at an added cost.
- Business merchandise coverage: If you sell items on eBay or other stores, Geico will cover common losses, like lost or damaged packages.
Cost rundown
Renters insurance quotes vary by person, so the only way to know exactly how much you’ll pay for a Geico policy is to get a quote. There are a variety of factors that influence how much your premium will be. Some factors have to do with your personal background, and others are related to the home you want to insure.
Also keep in mind that basic renters insurance plans do not include coverage for earthquake or flood losses. If you live in a state that is susceptible to either, you will need to purchase a separate policy.
Cheaper (or free!) alternatives
Renters insurance is already pretty affordable, but there are some additional ways to save.
- Raise your credit score: The higher your credit score, the better deal you’ll get. Increasing your credit score can help you save money on your premium over time.
- Increase your deductible: By increasing your deductible, you’re agreeing to pay more out-of-pocket to cover your losses before the insurance company steps in. As a result, you’ll pay less every year.
- Bundle your insurance policies: Geico offers discounts on renters insurance for policy bundling, so consider switching your auto insurance to Geico as well.
- Get multiple quotes: You’ll always find the best deal when you get quotes from multiple providers. Geico might not necessarily be the best or cheapest option for you.
- Make your home safer: Geico gives customers discounts on their renters insurance if they install anti-theft and fire safety features in their home, like fire sprinklers and alarms.
The competition
Geico is not the only option for renters insurance available. Here are a few competitors that you can also get quotes and information from.
- American Family: American Family earned the top spot in J.D Power’s 2019 U.S. Renters Insurance Study. The company earned a perfect 5-star rating across the board for overall satisfaction, policy offerings, price, billing, claims handling and customer service.
- Nationwide: In J.D. Power’s study, Nationwide received about average ratings in most categories, but it earned a 5-star rating for claims handling. Nationwide is a good option for people who want comprehensive coverage options. Basic renters insurance policies include personal and liability coverage, as well as credit card coverage and covered damages for home improvements.
- State Farm: State Farm was a close runner up in J.D. Power’s study, with 5 star ratings across the board, except for a dismal 2 out of 5 star rating for claims handling. State Farm is a good option for people who care about high quality customer service but aren’t as focused on price.
What others are saying
Looking at customer reviews on Geico’s Better Business Bureau page, it’s not uncommon for customers to complain about the poor customer service. Note that while these reviews refer to Geico in general, they might also apply to renters insurance too.
According to one customer, “The company only cares about the premium you pay them and when they are needed they leave you to fend for themselves.” Other customers caution against inaccurate payouts, raising rates for seemingly no reason and a slow claims handling process.
The bottom line
Geico renters insurance can be a good option if you want bare bones coverage for a fair price or already have another type of insurance with Geico. However, if you value reliable customer service, discount options and more flexible policy options, you’rebetter off taking your business elsewhere.
The post Geico Renters Insurance Review 2020 appeared first on The Simple Dollar.
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