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TS Peck

Why Are My Geico Insurance Rates Increasing?

FOR IMMEDIATE RELEASE

December 04, 2023

Why Are My Geico Insurance Rates Increasing?

People across the country are seeing their auto insurance rates and homeowners insurance rates increase, and Geico customers in Vermont are no exception. While the rate hikes in Vermont aren’t as high as in other states, these rate hikes are a good time to reevaluate insurance carriers.

TSP Geico Insurance

Why is Geico raising insurance rates?

Most insurance carriers are raising insurance rates

Geico is far from the only insurance company that’s increasing rates. Across the board, a few factors are making companies increase premiums:

  • Increasing labor and material costs are making repairs more expensive
  • Rising medical healthcare costs are making treatment for injuries more expensive
  • People are driving more miles, and thus in more accidents (for auto)
  • More frequent natural disasters are increasing damage claims (for homeowners)

This doesn't mean that all insurance companies are increasing rates by the same amount, though, and Geico generally doesn’t have the lowest increases.

Auto insurance rates are going up

Across the country, Geico increased its average auto insurance premiums by 25.9% from 2022-2023. This was the largest rate hike the company has made within the past five years, and by a large margin. Many other companies had lower increases over the past year: Nationwide (18.9%), Travelers (21.8%) and Progressive (19.4%) are a few lower examples.

A 25.9% increase in an auto insurance premium is no small amount, especially considering many families spend more than $1,000 a year on coverage. Even drivers who have rates below $1,000 annually will notice a double-digit increase in what they pay. 

TSP Geico Insurance

Homeowners insurance rates are going up

Homeowners insurance rates are also increasing, and at a comparable rate. Premiums for homeowners policies nationwide rose an average of 21% from May 2022 - May 2023, and they’re up an average of about 35% over the past two years. Geico has certainly followed suit, increasing its homeowners premiums in many cases.

Those increases are in addition to the auto insurance increases, and both come at a time when many costs continue to rise.

Insurance rates in Vermont are rising some

Vermont residents will undoubtedly see their rates increase, but the increase could be much worse in other parts of the country.

Vermont’s average auto insurance rate increase (across all insurers) was 6.3% since 2022, which is second-lowest only to Hawaii (4.4%). Over half of all states have seen average auto rate increases in the double digits since 2022. Nevada’s increase during this time has been more than four times that of Vermont’s, with drivers in Las Vegas and the state now paying 27.9% more for their insurance.

Homeowners insurance rates also rose less in Vermont than they did in other states. Vermont homeowners are still paying an average of 10% more when they renew their policies this year, though, and 10% on what’s often a $1,000+ premium is no small amount.

TSP Geico Insurance

Compare insurance rates with an independent agent

If you’re with Geico and are facing rising premiums, you may pay more for insurance no matter what company you purchase a policy from. You might not have to pay as much as Geico will charge, however. An independent agent may be able to find a lower price without sacrificing coverages.

An independent insurance agent can help compare rates from multiple insurance companies, checking which company offers the best rates even after any increases have been calculated. Independent agents aren’t limited to showing you just one insurance company’s options, as many non-independent agents are. To speak with an independent agent in Vermont, contact us at T.S. Peck Insurance.

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