Difference Between Farmers and GEICO Home Insurance

Insurance is an investment that caters security, safety, protection, and coverage in various aspects. It boosts confidence in the individuals. There are various policies available to suit the need of every customer. The two most popular insurance companies are farmers and GEICO. Both the companies provide service mainly in the US.

Farmers vs GEICO Home Insurance

The main difference between Farmers and GEICO home insurance is that Farmers was established in 1928 while GEICO Home Insurance was founded in the year 1936. Farmers were found in Los Angeles, California, US while GEICO Home Insurance was found in Texas, United States.

Farmers vs GEICO Home Insurance

Farmers Home Insurance is available in three main packages that are standard, premier, and enhanced. The insurance company operates through agents and local representatives. The main area which is served by the insurance company is the United States.

On the other hand, the GEICO home insurance policies cover three major aspects that are property damage, personal property, and jewelry coverage. The insurance company has an online signing-up process. There are a few agents to which are known as field representatives.

Comparison Table Between Farmers and GEICO Home Insurance

Parameters of ComparisonFarmers Home InsuranceGEICO Home Insurance
Year of establishment 19281936
Geographic coverage Over 49 states Over 50 states
Mode of operationMostly through agents and representativesOnline as well as through agents and representatives
AdvantagesIt provides extensive coverage options, an online filing option for highly-rated claims service, and the company is available nationwide It has competitive rates, several discounts, easily accessible online tools, and numerous coverage options
DisadvantagesThe premium rates are comparatively higher, the website is not quite user friendly and the customer service is rated average The reviews about the company are average and there are no local agents for guidance

What is Farmers Home Insurance?

Farmers insurance group is a renowned insurer group of America. It provides insurance in various domains like automobiles, small businesses, homes, and other financial services. The company has over 48,000 agents and over 22,000 employees. It is a private insurance company. It was founded in the year 1928 by John C. Tyler and Thomas E Leavey.

The headquarters of the company is in Los Angeles, California, US. The main area which is served by the insurance company is the United States. The CEO of Farmers Insurance is Jeffrey J Dailey. The parent organization of Farmers Homes Insurance is Zurich Insurance Group. The origin of Farmers insurance was to provide farmers and ranchers with lower insurance premiums.

Farmers home insurance provides various services like renters insurance, homeowners insurance, mobile home insurance, condominium, manufactured home insurance, seasonal and vacation homes, specialty home insurance, landlord and rental properties, and even flood insurance programs. The NAIC score for Farmers is 1.31, while the average score for the industry of insurance is 1.0.

Farmers home insurance is available in three main packages that are standard, premier, and enhanced. All the packages can be customized according to the needs and demands of the users. The standard package is best for homeowners who want a balance between features and affordability. The premier package has the highest limits and coverages and even a guaranteed replacement cost coverage. The enhanced package can accommodate several policy limits with additional features.

What is GEICO Home Insurance?

GEICO is a private insurance company which has the full form as Government Employees Insurance Company. The company provides insurance and financial services in various domains. The company was founded in the year 1936 in Texas, United States. The headquarters of the private insurance company is in Maryland, United States. The insurance company mainly provides services in the United States.

The CEO of GEICO is Todd Combs. The home insurance of GEICO is operated by an agency hence the policies and quotes are underwritten by providers which are third parties. This leads to variation in the coverage and pricing of the home insurance policies. The insurance company has over 40,000 employees.

The GEICO home insurance policies cover three major aspects that are property damage, personal property, and jewelry coverage. The property damage provides coverage of the property from various structures like wind, fire, hail, water damage which has to be included in the policy. Personal property includes belongings that are stolen or damaged in the incident. The belongings can be appliances, furniture, dishes, and even clothing.

It also provides coverage for jewelry but in a limited manner. The jewelry can include diamond bracelets, engagement rings, and even wedding bands. The policies of GEICO home insurance are highly customizable according to the threats and vulnerabilities of the users. It also has multi-policy discounts and home security system opportunities.

Main Differences Between Farmers and GEICO Home Insurance

  1. Farmers home insurance operates on users-based or telematics while GEICO home insurance does not operate on telematics or usage-based.
  2. The parent organization of Farmers Homes Insurance is Zurich Insurance Group while the parent organization of GEICO Home Insurance is Berkshire Hathaway.
  3. The financial strength rating given to Farmers Home Insurance is ‘A’ while GEICO has been given an ‘A++’.
  4. The JD power ranking given to Farmers is ‘excellent’ while the JD power ranking given to GEICO is ‘average’.
  5. The premium rates of Farmers are comparatively expensive while GEICO has cheaper premium rates.
  6. The customer satisfaction scores of the Farmer are better with fewer complaints while the customer satisfaction score of GEICO is lower with higher complaints.

Conclusion

Insurance is an essential investment of an individual. The role of insurance is in the sustainable growth of the economy. It encourages financial stability and mitigation of losses. Among home insurances, the two most renowned companies are Farmers and GEICO home insurance.

Both the insurance companies have various policies in diverse domains for the customers. Most of the policies are customizable to suit the specific needs of the policyholders. It is essential for the customers to understand the policies, and read all the terms and conditions before investing money into the policy.

References

  1. https://consumerfed.org/wp-content/uploads/2015/11/151118_insuranceinpredominantlyafricanamericancommunities_CFA.pdf
  2. https://heinonline.org/hol-cgi-bin/get_pdf.cgi?handle=hein.journals/defcon60&section=10
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