Today we will be comparing two giants in the insurance industry.
While reviewing Safeco vs GEICO we will take a look at claims, financial ratings, apps, discounts, and more.
The quick history of both insurance companies.
In 1923 Safeco Insurance was founded in Seattle, Washington by Hawthorne K. Dent. Safeco is a member of Liberty Mutual Group.
In 1936 GEICO was established by Leo and his wife Lillian Goodwin. GEICO currently has over 38,000 employees.
Auto Insurance Rates Comparison
Always remember that rates vary and depend on age, driving history, gender, location, and more. I personally was able to receive a cheaper insurance quote with GEICO.
ValuePenguin did an insurance study of California drivers. All drivers in the study insured a 2012 Toyota Camry.
Safeco gave cheaper rates for younger drivers under 25.
- Single 19-year-old males received cheaper rates by an average of $74 with Safeco than with GEICO.
- Single 19-year-old females received cheaper rates by an average of $211 with Safeco than with GEICO.
GEICO gave cheaper rates for single drivers over 25.
- Single 31-year-old males were able to receive a cheaper GEICO rate by $80 on average.
- Single 31-year-old females received cheaper rates by an average of $104 with GEICO.
Married couples
- Married couples in their late 20s and in their mid 60s were able to receive cheaper rates with GEICO by over $300.
Claims satisfaction
In the J.D. Power Auto Claims Satisfaction Study GEICO received 870 points on a 1000-point scale. GEICO was actually one of the highest rated auto insurers on the list. Unfortunately, in the study Safeco was the lowest company on the list. On a 1000-point scale Safeco received 820 points. The next two insurance companies above Safeco were COUNTRY Financial and Mercury insurance and they were 17 and 20 points higher.
Power Circle Scoring Legend
Out of 5 Power Circles, Safeco received 2 Power Circles in every category. The categories include overall claims customer satisfaction, First Notice Of Loss (FNOL), claim servicing, estimation process, repair process, and settlement.
GEICO received 4 out of 5 Power Circles, which means that they are better than most insurance companies. A few other well-known insurance companies that GEICO beat out include Nationwide, Liberty Mutual, Allstate, and State Farm.
According to the J.D. Power study we can conclude that GEICO is the better insurance company for those who desire a great claims experience in the event of an emergency.
Financial Strength
Financial strength allows us to know if our auto insurer has the funds to pay our claims. The more funds that an insurance company has, the less of a hassle that it will be when you are trying to get your claims handled.
Safeco is backed by the financial strength of Liberty Mutual, which is great for those who need auto insurance. Liberty Mutual is one of the largest U.S. corporations.
- A.M. Best gave Liberty Mutual an Excellent “A” financial grade.
- Standard & Poor’s gave liberty Mutual a Strong “-A” financial grade.
- Moody’s Investors service gave Liberty Mutal an “A2” Good rating.
GEICO is backed by over $30 billion dollars in assets. It’s safe to say that GEICO customers will not have any financial issues with paying claims.
- GEICO received a Financial strength rating of “A++” (Superior) from A.M. Best.
- Standard and Poor’s gave GEICO an “AA+” corporate credit rating and financial strength rating.
- Moody’s Investors service gave Government Employees Insurance Company (GEICO) an “Aa1” insurance financial strength rating.
- Fitch gave Berkshire Hathaway insurance (GEOCO’s parent company) a financial strength rating of “AA+”
Insurance discounts and features
Safeco Insurance
Safeco RightTrack
- Drivers can save up to 30% on their auto insurance Premium with Safeco’s free RightTrack program. All that you have to do is enroll. After enrollment, you will receive a device to plug into your vehicle. Drive with RightTrack for 90 days. Safeco drivers will get rewarded for the way that they drive. When the 90-day period is up remove the device and send it back to Safeco for final savings.
Safeco Package
- Policyholders can save up to 15% on auto insurance when they combine home and auto insurance policies. Also, Safeco drivers can receive a discount when they insure multiple cars on one policy.
Safeco low-mileage discount
- Safeco offers great fixed rates for low-mileage drivers. If you work close to home or if your car is usually parked, then why pay more for auto insurance? With Safeco, you can save up to 20 percent with their low-mileage discount. Drive less pay less!
Anti-theft devices discount
- You are able to save on your policy when your vehicle is equipped with an audible alarm.
- In the event that your vehicle is ever stolen, Safeco will waive your comprehensive deductible if your car has a LoJack or Teletrac system.
Accident Prevention course
- Depending on your age you may be eligible for a discount when you complete an approved accident prevention course. The great thing about this discount is that it will last for three years.
GEICO insurance
Good Driver
- GEICO drivers can save over 25% on their premium if they have been accident-free in the previous 5 years.
GEICO’s Coverage Calculator
- GEICO offers a helpful coverage calculator to help customers discover the appropriate level of coverage to get.
Vehicle equipment discount
- With GEICO, you can save on your premium if your vehicle comes equipped with airbags, anti-lock braking or anti-theft systems, daytime running lights, and more.
- Whether you are retired or active from the military, you have an opportunity to save big with GEICO. The military discount is not available with Safeco.
Multi-Car
- Just like Safeco, GEICO also offers a multi-car discount. However, GEICO allows you to save more with up to 25% of savings.
Multi-Policy / Multi-Line
- Bundling multiple GEICO insurance policies can help you save on auto insurance. The more policies that you bundle together the more that you will be able to save.
Employee & Organization Discounts
- You can easily receive a discount depending on your organization, employer, or college. With over 500 groups available there is a strong chance that you will be able to save with this insurance discount.
Both insurance providers are rich in features. I recommend comparing quotes to see all the discounts that you are eligible for.
Insurance availability
GEICO and Safeco are both large insurance companies. Coverages, features, and local offices are available in most states.
The only difference is that GEICO offers various oversees locations such as Belgium, Germany, Greece, United Kingdom, and more. GEICO also offers insurance for drivers in Canada and Mexico.
App comparison
Safeco
Safeco’s easy to use mobile app allows their customers to do various things such as report an accident, view ID cards, pay bills, add policies, check claim status, and update contact information. Safeco customers are also given Alexa, which is Safeco’s new “Insurance Advisor” skill.
GEICO
GEICO’s initiative app was ranked #1 in the Forrester 2017 US Mobile Auto Insurance Functionality Benchmark. GEICO’s app allows their drivers to view vehicle service history, chat with an agent, receive accident assistance, get virtual ID cards, pay bills, contact roadside assistance, and more. One excellent feature about their mobile app is that you will be given Kate. Kate is your own personal virtual assistant who helps you find immediate answers to your questions.
Bottom line
Both insurance companies are cheap, but GEICO easily wins in this comparison. With GEICO you will be able to receive greater discounts. Not only are you able to save more, but in case of an emergency, on average customers have received better claim settlements with GEICO.