Direct Auto vs. GEICO: Which Company is the Best Fit for You?

Quick Facts

• In general, Direct Auto offers slightly more affordable rates than GEICO
• Direct Auto has cheaper prices for policyholders who may not have much of a commute
• GEICO offers more discounts than Direct Auto Insurance

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Direct Auto vs. GEICO: Which Company has the Cheapest Car Insurance?

Are you in the market for a new insurance policy? You've probably seen commercials and billboards from companies offering huge discounts, but exactly how much money can you save by switching?

You've maybe even narrowed your search down to Direct Auto or GEICO as your top options, but which company will save you the most?

Looking at the national average rates for both companies, Direct Auto is about $15 per month less expensive than GEICO.

That being said, that doesn't necessarily mean Direct Auto will be the cheaper option for every single driver. Car insurance carriers use a variety of complex algorithms to calculate premiums, so depending on how old you are or how clean your driving record is (among a wide array of other factors), you could see wildly different rates from the ones above.

Luckily, we've broken down average prices from both Direct Auto and GEICO by a variety of different rate factors, so read on to find out which company is the best for you.

Direct Auto or GEICO: Average Car Insurance Rates by State

Direct Auto and GEICO only compete against each other in two states, with GEICO offering more affordable rates to the average driver in all of them. Mississippi has the most noticable difference, where Direct Auto premiums are over 70% less expensive than insurance prices at GEICO.

There's a lot more that goes into your auto insurance bill than just where you call home. Read on to find out more.

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Which is the Best Company For Young Drivers?

You might already know that teen drivers generally pay a lot more for car insurance than any other group of drivers. It's typically because young, inexperienced drivers are statistically much more likely to get into accidents since they have less experience on the roads.

But still, even with seemingly sky-high premiums, teen drivers can still find ways to save money. For example, 18-year-old drivers pay an average of $6 less a month by choosing Direct Auto over GEICO.

However, with both companies, you'll see your prices decrease significantly by the time drivers turn 25. GEICO offers the steepest drop, with 25-year-olds paying less than half what 18-year-old drivers are charged. That being said, Direct Auto still has the cheapest rates at $158 a month.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll normally enjoy the most affordable insurance prices you'll ever see. You've been on the road for years, and all that experience pays off when it comes to your monthly premiums for car insurance.

When looking at Direct Auto and GEICO specifically, which carrier is best for retired drivers? Direct Auto gets the edge, with rates for drivers 65 and older $24 more affordable than the national average for GEICO.

Which is the Best Company for Married Drivers?

You may not be aware, but auto insurance prices tend to be more expensive for those who are single than they are for married policyholders. That's because policies for married drivers usually cover several cars, which several carriers will offer you a discount for.

When it comes to relationship status, the two companies are comparable for single drivers, with premiums only differing around $10 per month, on average. The advantage for married couples is more obvious, where drivers who use Direct Auto save more than $20 a month.

Direct Auto vs. GEICO: Average Rates by Gender

Men typically pay more for insurance than women. This is because men are statistically more likely than women to get into accidents and get tickets, which leads to increased risk for insurers and, therefore, higher rates.

Normally, men see prices about 2% per month higher with Direct Auto, and around 4% more with GEICO.

Looking at the data for each company specifically, Direct Auto offers the lowest average rates for both men and women, with average premiums 9% less for men and 7% cheaper for women.

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Direct Auto or GEICO: Compare State Minimum vs. Full Coverage Rates

*State minimum value indicates liability-only policies at each state's minimum bodily injury and property damage (BI/PD) limits

**Full coverage indicates state minimum BI/PD limits with collision and comprehensive coverages added to policy.

For most people, auto insurance can be pretty complicated. There are so many different coverages and limits that it can make it pretty confusing to find the right policy.

But most policies that many drivers look at fall into two categories -- liability only (that covers property damage and bodily injury for other drivers and their passengers if you cause an accident) and full coverage (which usually refers to having comprehensive and collision coverages alongside what you get with a liability policy).

If you're looking for state minimum liability insurance, Direct Auto generally offers slightly less expensive prices of $96 compared to GEICO's $101. When it comes to full coverage policies with similar limits, Direct Auto again has the edge, with policies about $25 a month cheaper than GEICO, on average.

Is Direct Auto or GEICO Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from car insurance carriers offering great premiums for good drivers, but that doesn't mean people with less-than-perfect driving records can't save money, too.

It's no secret secret that tickets and accidents lead to higher rates, but which carrier -- Direct Auto or GEICO -- has the cheapest premiums for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Direct Auto policyholders can expect their prices to go up an average of $38 per month if they get a ticket, while GEICO normally raises rates around $35 a month, on average.

Even so, GEICO has less expensive premiums for drivers in both categories, offering rates that are 20% and 17% more affordable, respectively, compared to Direct Auto Insurance.

Which Company is Best for Drivers After an Accident?

Direct Auto drivers who get in a collision can expect to see their prices climb by over $45, while those who have insurance through GEICO will see about a $85 increase.

Overall, drivers who use Direct Auto end up with the cheaper prices after an accident, with monthly rates averaging $190 compared to GEICO's $200.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single accident or speeding ticket when it comes to your auto insurance bill. GEICO drivers usually see a 58% increase in their insurance premiums after a DUI charge, while Direct Auto will typically raise prices by around 13%.

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How does Credit Score Impact Direct Auto and GEICO Rates?

Did you know that many car insurance companies take your credit score into account when calculating premiums? This isn't always the case (for example, California and Michigan are two states that ban the practice entirely), but it does affect lots of policyholders out there.

The reasoning auto insurance carriers use is that drivers with bad credit will be less likely to pay their bills on time; so normally, they'll be asked to pay more, while those with good credit will be rewarded with cheaper rates.

So, which company offers the most affordable prices for policyholders with good, average, or poor credit?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

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Is Direct Auto or GEICO Better for Drivers who Work from Home or Have Short Commutes?

Did you know that the amount of time you spend in your car have a big impact on how much car insurance companies will charge for coverage? That's because the more miles you put on your vehicle each year, the more likely you are to get into an accident and cause an insurance claim.

As you can see in the table above, annual mileage doesn't have much of an impact on how much Direct Auto charges. However, there's a small difference in monthly premiums for GEICO, with drivers who put 6,000 miles on their car annually paying about $8 less each month compared to those who drive 12,000 miles every year. Still, Direct Auto is the less expensive option for drivers in both categories.

Direct Auto vs. GEICO: Compare Rates for Urban, Suburban, and Rural Drivers

We've already mentioned how your home state can play a role in how much you pay for insurance, but the type of area you live in can have a large impact as well. Generally, drivers who live in less densely populated rural areas will pay quite a bit less than urban policyholders because there are a lot fewer vehicles on the road in those areas, which lowers the chances of an accident.

Direct Auto boasts the lowest average prices in rural and suburban areas, while GEICO wins in urban areas.

If you live in a rural area, you can expect to pay around $116 monthly with Direct Auto and $159 with GEICO. People in suburban areas pay a monthly premium of about $168 with Direct Auto compared to $185 with GEICO. In urban areas, GEICO's average rates are around $211 while Direct Auto offers premiums about $226.

Direct Auto vs. GEICO Discounts

You want to save as much money as possible, right? The best way to do that is by taking advantage of as many car insurance discounts as you can.

The difficult part is finding all of the discounts you qualify for, since it can feel sometimes like every company has different discounts and each one is advertised differently.

In the table below, we've broken down all of the different discounts offered by both Direct Auto and GEICO so that you can find the carrier that has the most discounts and, therefore, the biggest savings.

GEICO knocks Direct Auto out of the park when it comes to the sheer number of discounts available, offering nine more discounts than Direct Auto.

Both carriers offer many of the same discounts -- like anti-theft discounts, EFT discounts, discounts for being a good driver, and military discounts -- but GEICO also offers commercial drivers license discounts, COVID-19 relief discount, deployed driver discounts, and more that Direct Auto does not.

On the flip side, Direct Auto has a couple unique discounts of its own -- advance quote discounts, bike policy discounts, discounts for being a homeowner, and more.

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Final Thoughts: Is Direct Auto or GEICO Best for You?

So, we've broken down the average prices for many of the factors auto insurance companies look at, and walked through the different discounts each carrier offers, too. That's all well and good, but at the end of the day, is Direct Auto or GEICO the best one for you, your vehicle, and your wallet?

Direct Auto might be best for you if....

• You have a DUI charge on your record.
• You live in an suburban area.
• You and your spouse are buying insurance together.

GEICO might be best for you if...

• You have a clean driving record, free of collisions, tickets, or DUIs.
• You've been pulled over for speeding recently.
• You're looking for the company with the most discounts.

We hope this guide has ben a valuable resource as you compare Direct Auto and GEICO and that you can now make a more informed decision when it comes to your auto insurance.

At the end of the day, the best way to make sure you're getting the best deal on your car insurance policy is to compare quotes from multiple carriers, not just Direct Auto and GEICO. Luckily, sites like Compare.com make it easy for you to do just that. Simply enter your ZIP code below and get free quotes from dozens of the top insurance companies in your area, all in just a few minutes.

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Direct Auto vs. GEICO FAQs

Is Direct Auto or GEICO cheaper?

Looking just at the national average premiums, Direct Auto is the more affordable of the two carriers, offering average rates of $170 per month compared to $185 for GEICO. However, Direct Auto won't necessarily be the most affordable carrier for each policyholder, since there are a range of different variables that are considered when it comes to your auto insurance payment.

Who is better, Direct Auto or GEICO?

Unfortunately, the real answer is "it depends.". Neither company is "better" for every driver -- it all depends on what your unique car insurance profile looks like. For example, Direct Auto offers cheaper prices for drivers with a recent DUI, while GEICO is less expensive for drivers with excellent credit.

Why do Direct Auto and GEICO offer me different rates?

Insurance companies take a look at quite a few different factors when determining the rates they charge drivers. Variables like your driving record, age, where you live, gender, and sometimes even things like your credit score can all be taken into consideration. Both Direct Auto and GEICO calculate prices using different formulas, so each one will most likely offer different premiums. The only real way to see which carrier is the lowest for you is by comparing personalized quotes from several different carriers.

How do I know if Direct Auto or GEICO is right for me?

The only way to find the car insurance company that's right for you is by getting quotes from several companies and finding the one best suited for your individual budget. Luckily, sites like Compare.com do all the hard work for you. Just enter your area information and you'll get free quotes from dozens of the best auto insurance carriers in your area. That way, you can guarantee you're getting the most affordable rate. And who knows, the best carrier for you might not be Direct Auto or GEICO at all!

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Methodology

All of the data referenced in this article has been gathered in collaboration with Quadrant Information Services. We analyzed more than 2.5 million rows of carrier-reported data to calculate the average rates referenced above. All rates are based on an insurance profile of a single-vehicle policy for a driver that owns a 2016 Honda Accord. For more information on how we calculate rates, please reference our data methodology.