Geico Might Be Funny, But Will They Save You Any Money?

January 8, 2016 3 Comments »
Geico Might Be Funny, But Will They Save You Any Money?

So it seems everywhere I turn, I see a Geico commercial. And hey, they’re funny. I’ll admit it. And I don’t like to admit things, especially positive things about large corporations.

But that’s not the end of the story. That’s just the human in me laughing when something in front of me is humorous.

They’ve got those series of ads on TV that if you’re X, it’s what you do. If you want to save 15% or more on car insurance, you switch to Geico, it’s what you do.

For example, they ran a Peter Pan one into the ground, with a forever young Pan showing up to his high school reunion, much to the chagrin of his now much older classmates.

Then there’s the one about all Moms, who tend to call you at the most inopportune times…in this case, while the son is in a gun battle but still reluctantly takes the time to pick up the call. It is, after all, his mother. Oh, and she has nothing important to tell her son, just chit chat.

The most recent Geico ad I’ve seen involves two “bros” working out at the gym. As they banter, using their Brocabulary, one bro keeps getting more and more ripped until he’s the size of Arnold of old.

In this particular ad, they highlight the fact that Geico does more than just car insurance, with mentions of renters insurance and motorcycle and RV insurance. Interestingly, they don’t mention their agency-issued home insurance.

I noticed a new tagline on this one: “Expect great savings and a whole lot more.”

Again, it’s funny and I’m sure it really speaks to a lot of the young bros out there who happen to need car insurance, or another one of their toys.

What Does Geico Actually Sell?

Here’s what struck me though. Geico doesn’t make any effort to discuss the actual product you will receive, nor highlight their many discounts.

Unlike most other insurers, which have recently taken the time to start explaining their policy coverage, take Liberty Mutual’s New Car Replacement for example, Geico continues to bring us the laughs, and not much else.

The only clue about what they do comes from their tagline. Other than that, we have no idea what were actually going to get from Geico. And apparently that doesn’t seem to matter.

Insurance is boring, it’s confusing even, it’s a commodity. It’s all the same stuff and no one really cares or wants to know what’s under the hood. Just get me the lowest price and we’re good. Oh, and make me laugh along the way please.

While that’s one way of doing things, it may not be the best way. For one, we’re talking about some pretty serious stuff, which could come into play if you get into a wreck, or your home sustains damage.

It’s important to actually know what you “signed up for” when you take out an insurance policy.

Secondly, and perhaps just as important, is pricing. What are you paying for your new policy from Geico? Did you get a good deal? Did you take the time to compare their price to other insurers that didn’t spend billions to advertise, let alone make you laugh?

Look, I get it, this is advertising in the modern age. To entertain and “go viral” with funny stuff, and Geico has certainly managed to do that.

Just don’t forget why you’re calling them in the first place. You aren’t buying a funny t-shirt; you’re purchasing very important coverage in the event of a claim.

You can still laugh at the commercials and share them with your friends, just be sure to put in the time to compare different companies and coverage options to ensure you’re not the butt of the joke.

3 Comments

  1. Sandy Smith April 21, 2016 at 1:20 pm -

    With my new credit score in hand I called GEICO to reassess the cost of my insurance and sure enough, my monthly insurance cost went down by about $17. It’s not much, but it adds up to over $200 in one year.

  2. Millennial Moola June 20, 2016 at 11:01 am -

    I think they have saved me $2,000 over the course of my coverage compared to state farm which i had before. They seem to always be the cheapest by a long shot especially in the northeast

  3. Thane December 15, 2016 at 5:56 pm -

    I am in the middle of switching over to GEICO. I currently have State Farm for auto (almost 1 year now) and the policy will be up for the next 6 month renewal a week after January starts.

    State Farm seemed wonderful but quite expensive and I was told lots of good sounding promises from my agent and good sounding excuses as well from my agent at the start and through the year too.

    Calling directly to the company for anything has proven to be in many ways (usually pointless to try) and they just force me back to the agent for almost any questions, even small simple question that asked why I got a small $10 refund check and what did the binding agreement on the back of the endorsement area mean. I was told they didn’t know, that they wasn’t familiar with that text in the endorsement area on the back of it, that they couldn’t help me with what I was asking and that I would need to talk to my agent for answers.

    They would not even answer questions about how to cancel the automatic renewal of my renter’s insurance policy, not even answer if nonpayment of of this auto-renewal bill would affect my credit nor would they do an actual cancel of it on the phone nor answer any general questions about a rental policy cancellation. Again, I was told I had to talk to my agent I told them I don’t trust anymore to get all these answers (for any answers to anything really). That said this was the only way. I even asked how could I cancel a renter’s policy in writing, by me sending them something in writing to have it canceled but again, same response.

    GEICO so far has been the opposite when I have questions, even if it’s questions I know they can’t answer, they have tried to help come up with ideas or tell me practical ways to get the answers.

    Now just recently someone backed into my car and all went well with the other driver’s insurance (Allstate) picking up the tab to fix my car (them doing a claim & approving it). Allstate accepted it was their customer’s fault (the other driver’s fault). I called to let State Farm know this accident happened (called the company, not through my agent) and they opened a collision claim but did not word it like this to me! Next day I realized what they did and I immediately had it canceled and I explained the situation to them AGAIN.

    Now they have raised my insurance for the renewal by a large amount though I was promised all year it would go way down after this year.

    GEICO let me know (on the phone and in writing later) the raise in cost is most likely because a consumer report saying I had a claim. I soon after was given a paper from GEICO saying my GEICO premium was a little higher (as I was told on the phone) because of a claim in my history shown by LexisNexis Consumer Center report.

    The GEICO quote only went up about 60 bucks because of this report but State Farm went up over $150 instead of going down as promised all year. And when I called State Farm, they refused to discuss it or give me any information on it. Said I have to talk to my agent for any information about that (after I told them again some reasons why the agent does not have my trust now).

    GEICO discussed it with me to the best of their ability and were much more helpful.

    So I know State Farm is a company I do not like now. GEICO so far has been great so far and way better in communication to me on the phone than State Farm and GEICO brought my insurance down by over $300 bucks with a little more coverage in some areas than State Farm gave me. The GEICO website is easier to find out certain things I want to know about my policy and coverage that will be starting soon. State Farms website was frustrating for these things I wanted to find more detail on.

    Only time will tell if this is because I am a soon to be new customer or not and how further dealings with GEICO will go. I can say that to talk negative about a company, very good reasons need to be given and discussing their decision on how to market their services isn’t of importance to me; not a good reason. All insurance companies have plenty of negatives to point out. I wish the truly important negatives of GEICO had been pointed out here instead, whatever they may be.

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