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Esurance vs GEICO

There a couple of legal requirements that you must fulfill before you are allowed to drive on the road in the United States. First, of course, you must have a valid driver’s license. Secondly (with only a couple of exceptions), the car you’re driving must be insured.

The auto insurance industry, like other financial services businesses, is governed by certain mandates at the federal level. But insurance is also overseen at the state level. Taken together this web of regulations is intended, among other things, to see to it that insurance companies have sufficient reserves to meet the reimbursement promises they make to their policy holders. They protect the public.

Auto insurers are in the risk business. They measure the rate of how often things like vehicular accidents occur, calculate the estimates payments that would result, then figure out how many policies they would need sell and at what price point in order to cover costs and turn a profit.

The rates any individual will pay for car insurance depends on a host of variables. Insurance companies tend to reward safe drivers with lower annual premiums. Most companies also have a full menu of coverage options you can choose from, so it’s best to do your research before you buy.

We at General can help you make sense of the car insurance buying process by helping you get free price quotes that you can use to determine your most economical choice.

Some Information on Esurance

Esurance was a pioneer in online sale of auto insurance. The venture was founded by a quintet of Bay area entrepreneurs in 1999. Rather than distributing their product through a network of agents or via telephone, they sold to consumers solely online.

After about a year, he fledgling company was licensed to sell in twenty four states and was bought out by a competitor. The company expanded its portfolio of products and they blazed additional new trails by claiming to be one of the very first insurance companies to offer coverage to same sex couples.

In the spring of 2011 Allstate Insurance announced that it would purchase Esurance in order to help beef up its own online sales efforts. Currently Esurance sells their products in 43 states, covers well over 5 million vehicles and states that it settles most claims within 10 days.

Driver profile Esurance Geico Annual difference
Good driver with good credit $2,108 $1,843 $265
Driver with a recent at-fault accident $3,581 $2,942 $639
Driver with poor credit and a clean driving history $4,075 $2,897 $1,178
Minimum required coverage $1,165 $736 $429

Is Esurance Right For You?

We’ve mentioned earlier that car insurance, unlike the majority of other consumer products has pricing that is essentially personalized to your particular situation. Your premiums will be determined by your driving profile and your coverage levels.

Potential Esurance customers let the carrier know things like your zip code (so they can determine where you’ll be doing most of your driving), certain demographic information (they want to know how long you’ve been a driver) and details about your car (new casr are typically more expense to insure than older models). Next, Esurance will likely have a menu of options for you to choose from. Everything from standard collision and liability to more comprehensive and customized protections and coverages.

Esurance is a reputable provider of automobile insurance but you should compare their process to the industry peers. See how they stack up against others before committing your insurance dollars.

Assembling your driving profile, figuring out which carriers to send it to and transmitting the data to insurance companies in order to receive free quotes is where we at General come in. The General.com web site will simplify the process of getting competing price quotes for car insurance and streamline your bargain hunting efforts.

Discount Type Esurance GEICO
Driving training discount -- Varies
Daytime Running Lights Discount -- up to 3%
Defensive Driver Discount up to 10% Varies
Good Student Discount up to 10% up to 15%
Anti-lock Brake Discount up to 5% up to 5%
Accident Free Discount up to 25% Varies
Organization Discount up to 5% Varies
Paid in full discount up to 10% --
Provider Switch Discount up to 5% --
Prepay Discount up to 10% --
Passive Restraint Discount up to 33% up to 25%
Signing documents when you buy online discount Varies --
Emergency Deployment Discount -- up to 25%
Anti-Theft Device Discount up to 25% up to 25%
Multiple Policy Discount up to 15% Varies
Good Driver Discount up to 40% up to 26%
teenSMART Discount -- Varies
Starting your auto quote online discount up to 5% --
Roadside Assistance Discount up to 5% --
Alumni Discount up to 15% --
Home Owner Discount Varies --
Seat Belt Use Discount -- up to 15%
Military Discount -- up to 15%
Federal Employee Discount -- up to 25%
Senior Adult Discount -- Varies
Driving Habits Discount up to 5% --
Multiple Vehicle Discount up to 5% Varies

Next, Let’s Look at GEICO

GEICO rise to prominence in the auto insurance business can be seen as a quintessential American success story A husband and wife team realized in 1936, that a certain market segment of American motorists, federal workers, would perhaps be an ideal customer base for the burgeoning car insurance industry. They had steady employment and many of them needed their cars to commute to work. They would be safer drivers than others.  Leo and Lillian Goodwins venture, named the Government Employees Insurance Company, company took off and they soon moved their headquarters to Washington DC. Lillian herself was responsible for things like doing the accounting, assessing risk (known as underwriting), and setting policy rates. The company was on its way.  Today, GEICO is a subsidiary of the Berkshire Hathaway conglomerate. Berkshire’s principal owner, famed investor Warren Buffet, first purchased stock while a Columbia University student in the early 1950’s, expanded his holdings in the 1970’s and finally bought out all remaining GEICO shares in 1996.

Will GEICO be cheaper?

The very best auto insurance rates will usually go to the drivers with top notch safety records. But many of us don’t have that level of perfection in our driving history. But, either way, GEICO will have a plan for you. Perhaps you’ve recently taken a driving safety refresher course. Maybe you are a current or veteran member of the country’s armed forces. Many families own more than one vehicle. All of these factors may be sufficient to lower your premiums with GEICO. Don’t risk leaving money on the table – visit us at Genral.com and our online tool will help you easily get a free quote.

Esurance vs GEICO – Which Is the Insurer for Me?

Without knowing the exact level of coverage you want for your car and the full details of your driver profile, it would a too simplistic to state with assurance which of these vendors will give you the better deal. Esurance and GEICO’s premiums are a function of the variables you supply to them. Which is why we recommend being a smart shopper and make insurance companies go head to head for your business.

The Bottom Line for Car Insurance Savings

Really, the only way to say with precision which provide of car insurance will give the you the cheapest rates is to get actual quotes based on the information you can provide. And we at General will help you easily funnel that information to insurance carriers to get you the proof you need to pay the lowest price in the form of free price quotes.

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