Insurance policies have become crucial in saving professionals and individuals from financial losses. Even after buying a smartphone, an individual takes insurance for it.
From insurance for trivial things to life insurance, an individual needs to be aware of these kinds of insurance. Policies are available for every individual’s needs and the entire family.
Two such prominent insurance agencies are SAFECO and GEICO.
Key Takeaways
- GEICO offers more discounts and special offers than Safeco Insurance.
- Safeco Insurance has a better reputation for customer service than GEICO.
- GEICO is better for drivers who want the most affordable insurance, while Safeco Insurance is better for those who prioritize excellent customer service.
SAFECO Insurance vs GEICO
The difference between SAFECO and GEICO Insurance is that SAFECO offers all kinds of insurance plans. Still, GEICO is an automobile insurance company offering specific car insurance plans. SAFECO has about ten products individually, whereas GEICO has 26 parts in partnerships. While SAFECO’s policies are written solely by the company, GEICO’s policies are written by its other partners.
Earlier, the company’s name was General Insurance which changed after thirty years to SAFECO (Selective Auto and Fire Insurance Company of America).
SAFECO also has an “A” rating from AM Best, an 802/1000 rating from J.D. Power 2020, and 838 / 1,000 from Insurance Shopping Study conducted by J.D. Power 2020.
GEICO stands for Government Employees Insurance Company. After State Farm, GEICO turns second among the most significant auto insurances. Founded in 1936, GEICO has its headquarters in Maryland, USA.
Interested and potential customers can grab their quotes online from their website. It’s famous because of the high expenditure on advertising its products and services.
Comparison Table
| Parameters of Comparison | SAFECO Insurance | GEICO Insurance |
|---|---|---|
| Founding Date | SAFECO was founded in 1923. | SAFECO Insurance offers about ten products. |
| Products | The pros of SAFECO insurance are: SAFECO has a bunch of insurance products with competitive rates.SAFECO offers extraordinary financial stability and a user-friendly website.SAFECO offers 24/7 customer support. | GEICO Insurance offers about 26 products. |
| Standard and Poor’s Rating | SAFECO Insurance has a Standard and Poor’s Rating of A- (Strong). | GEICO Insurance has a Standard and Poor’s Rating of AA+. |
| Pros | The pros of GEICO insurance are: GEICO has a wide range of coverage amounts.GEICO’s life insurance doesn’t require any medical examination.GEICO also has many policies, which are Guaranteed acceptance policies. | The cons of SAFECO insurance are: SAFECO has many complaints against claims being paid low. |
| Cons | The cons of GEICO insurance are: GEICO works in association with LifeQuotes who writes all its life insurance policies.Although one can easily grab the quotes on the website, the company name is not always displayed. | The cons of GEICO insurance are: GEICO works in association with LifeQuotes, and writes all its life insurance policies. Although one can quickly grab the quotes on the website, the company name is not always displayed. |
What is SAFECO Insurance?
SAFECO Insurance, an American insurance industry, was founded in 1923 in Seattle, Washington. Being a leading person in the family of Liberty Mutual Group, SAFECO has about 9000 agents worldwide.
SAFECO hasn’t earned the credit of the Better Business Bureau for itself. However, its parent agency, i.e., the Liberty Group, has received an “A” rating from BBB since 1931.
Besides these, SAFECO has a good impression from other finance agencies like AM Best, S&P, and Moody’s.
However, SAFECO asks its potential customers to visit their website to get an idea of the quote and their local agents for dealing with the exact price of the insurance plans.
The company has an array of products relating to personal finance. Some significant products of SAFECO are auto insurance, homeowner’s insurance, renter’s insurance, and condo insurance.
Other essential products include watercraft/boat, classic car, motorcycle, R.V., umbrella, and landlord insurance.
Besides these individual plans and products, SAFECO offers combo plans such as home and auto coverage.
These plans are convenient and offer the best coverage and savings. SAFECO is reliable and provides premium at affordable prices for all products.
What is GEICO?
GEICO is an auto insurance industry that is privately owned and of American origin.
The essential products of GEICO are auto insurance, motorcycle insurance, homeowner’s insurance, renter’s insurance, ATV insurance, and umbrella insurance.
Other essential products include condo insurance, co-op insurance, collector car insurance, snowmobile insurance, identity theft protection & R.V. insurance.
Besides these, GEICO also offers life, boat, personal watercraft, flood, mobile home, and commercial auto insurance.
GEICO also has its mobile application, making navigating various programs and plans easier for users.
GEICO also has seven affiliate industries. Some of them are GEICO General, GEICO Casualty, and GEICO Indemnity.
However, GEICO thoroughly checks the individual’s credit report before giving him any plan. GEICO acts like Berkshire Hathaway’s subsidiary, providing services to not less than 50 states across the USA.
GEICO started its journey as an automobile insurer and has many plans today. GEICO’s financial stability is much discussed in the financial world.
Moreover, GEICO also offers a hassle-free process. Although GEICO has all the facilities in virtual mode, it doesn’t provide a local insurance agent.
A local insurance agent would make understanding and trusting its services easier. GEICO’s discount levels and other services are even better for military personnel.
Main Differences Between SAFECO Insurance and GEICO
- SAFECO Insurance has a Moody rating of A2 (Good). On the contrary, GEICO Insurance has a Moody rating of A++.
- SAFECO Insurance has A. M. Best’s Rating of A (Excellent). On the other hand, GEICO Insurance has A. M. Best’s Rating of A+(Superior).
- The national complaint index of SAFECO Insurance indicates that it has a lower number of complaints. On the contrary, the national complaint index of GEICO Insurance is 1.4, which suggests that the number of complaints is slightly higher.
- SAFECO Insurance takes many examinations and even offers fewer discounts. However, GEICO insurance is relatively easy to acquire because of its easy availability and hassle-free process.
- SAFECO has its life insurance plans. Whereas GEICO doesn’t have life insurance plans.
- https://search.proquest.com/openview/8f0f1322b80b0503c6e2964c52b5072e/1?pq-origsite=gscholar&cbl=545
- https://onlinelibrary.wiley.com/doi/abs/10.1002/smj.4250160605
Last Updated : 13 July, 2023
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.
The historical background of both SAFECO and GEICO is fascinating, and it’s nice to get detailed information on both companies.
The tone of this article seems to skew towards GEICO, the comparison does not seem entirely fair in that regard.
I disagree, I found the comparison to be well-balanced.
Yes, I felt the same way.
The detailed analysis of the pros and cons of both SAFECO and GEICO is really well-written and helpful.
Yes, this article is very thorough.
I found this article to be very biased in favor of SAFECO Insurance, it should provide a more neutral perspective on both companies.
The article should delve more into specific premium costs and less on general historical information.
This article provides great insights into the comparison of SAFECO Insurance and GEICO Insurance. It’s very informative and helpful
I agree, I found it extremely helpful.