Today, we will be comparing two of the best car insurance companies in the world. USAA Vs GEICO is a great insurance review for this who need military discounts and affordable insurance rates. In this article, you can expect pricing comparisons, claim satisfaction comparisons, financial strength comparisons, and more.
History
USAA was founded on June 20, 1922 when 25 Army officers came together and decided to insure each other’s vehicles. Harold Dunton was USAA’s first customer. He was also hired as a general manager. Today USAA has over $137 billion in assets.
GEICO was established in 1936. Today GEICO insures more than 24 million vehicles. Currently, GEICO is the second largest auto insurer in the U.S. after State Farm.
Car insurance month to month price comparison
Doing a price comparison can only be done by comparing insurance rates. Insurance rates differ for high-risk drivers, males/females, the discounts that the company has to offer, the state that the driver resides in, and more.
With that said, on a national scale GEICO drivers pay less for auto insurance on average. However, once again it is essential that you compare quotes to get low cost car insurance.
Auto insurance claims satisfaction
In case you ever have to file a claim, you want an insurance provider that will handle your claim well. J.D. Power has various rating factors in their annual Auto Claims Study such as claim servicing, the estimation process, repair process, rental experience, settlement, and first notice of lose.
In the J.D. Power Auto Claims Study both USAA and GEICO ranked higher than most auto insurance companies on the study. Amica Mutual was the top company on the list with 5 out of 5 Power Circles in overall satisfaction. USAA was 2nd on the list with 5 of 5 Power Circles in overall satisfaction. GEICO was 8th on the list with 4 out of 5 Power Circles. GEICO and USAA rated better than State Farm, Progressive, Nationwide, Esurance, Allstate, and other popular auto insurance carriers.
Financial strength rating comparison
This comparison allows us to know if USAA and GEICO have the ability to pay insurance claims.
GEICO and USAA both received the highest rating available from A.M. Best with an “A++” Superior financial strength rating. Both companies also received the same financial strength rating from S&P with an “AA+” rating. Both insurance carriers have enough assets to handle any future insurance claims that you might need to file.
Insurance Shopping Study
The J.D Power Insurance Shopping Study measures car insurance shopping, purchase behavior, and more. Rating factors include: policy offerings, price, local agent, call center representative, and the insurer website. In the Insurance Shopping Study, USAA received 5 out of 5 Power Circles in overall satisfaction. GEICO received 3 out of 5 Power Circles in overall satisfaction.
GEICO auto insurance discounts
Five-Year Accident-Free Good Driver – Accident free drivers will be able to save up to 26% on their premium.
Defensive Driving Discounts – Drivers who have completed a defensive driver course may qualify for this discount.
Emergency Deployment – Are you part of an emergency deployment to other imminent-danger zones? If so, you could save up to 25% on your insurance premium with GEICO.
Military Discount – Whether you are on active duty or you are retired you will be able to save 15% on your auto insurance with this military discount.
Federal Employee discount – If you’re an active or retired federal employee, you could save up to 8% on your insurance premium.
Membership discounts and premium reductions – If you belong to certain organizations you may be able to qualify. Organizations include Executive Women’s Golf Association, International Tennis Hall of Fame, Southern California Golf Association, USA Water Ski, BJ’s Wholesale Club Members, Navy Federal Credit Union, Armed Forces Benefit Association, Association of the U.S. Army, National Grants Management Association, Applied Underwriters Inc. (Omaha), Medical Protective, School Nutrition Association, State Bar of Texas, Florida Bar, and more.
Multi-Car – If you insure 2 cars on the same policy, then you will be able to save up to 25% on most of your car insurance coverages.
USAA auto insurance discounts
Safe Driver – Drivers who have maintain a clean driver record for 5 or more years will be eligible for the USAA safe driver discount.
Good Student – Maintain good grades and you will easily be able to qualify for this discount.
Annual mileage – This discount is similar to pay as you drive auto insurance, but not quite. With this discount, you will receive a discount for the number of miles you drive in a year.
Vehicle Storage – If you have an insured vehicle that you store in the garage you will be able to save up to 60%.
New vehicles – New vehicles less than 3 years old will result in special savings with USAA.
Family discount – USAA offers one of the best family auto insurance plans. If you continue the USAA tradition that was started by your parents, then you can save 10% on your auto insurance.
Length of Membership Savings – The longer that you remain with USAA the more that you will be able to save on your policies.
Roadside assistance
With USAA, you can add Towing and Labor onto your policy. Towing and Labor includes towing, gas delivery, and tire replacement.
Roadside services with GEICO is going to cost you $14 a year per vehicle. GEICO’s roadside service is going to cover jump starts, labor to change a flat tire, towing, and lockout services.
Mobile App comparison
The USAA Mobile app is simple yet effective. The USAA Mobile app is equipped with an in-app assistant that allows you to receive help with specific questions. The app also allows you to pay bills, transfer funds, make trades, get an auto ID card, get an Accident Checklist, report insurance claims, and more.
The GEICO Mobile app was awarded as the best auto insurance app in the U.S. by Forrester.com. The GEICO Mobile app is equipped with an interactive Accident Guide, Gas finder, Virtual assistant similar to Siri, report and track a claim feature, pay bills feature, and more.
Rideshare comparison
Do you drive for a ridesharing company such as Uber and Lyft? If so, then you might be surprised to learn that their insurance may not cover what you might expect. It is always wise to be prepared with rideshare driver coverage.
Both insurance companies offer rideshare coverage. USAA offers rideshare coverage for as low as $6 a month.
Bottom Line
USAA does better in claims according to J.D. Power. However, on average GEICO has slightly cheaper insurance rates. USAA is only available to active or retired military personnel and children of military personnel. GEICO is available to all men and women, which gives them an advantage over USAA. Overall, both companies are awesome, but I encourage you to compare insurance quotes right now to receive the best pricing.