Geico vs. Farmers
Due to the potentially huge financial costs of life and property damage resulting from a serious accident, every state in the union (New Hampshire is the exception) requires drivers to carry automobile insurance in order to legally operate a vehicle. Driving a car without a license you run the risk of a fine, the suspension of your license or even jail time for repeat offenders, not to mention the threat of bankruptcy. At the federal level, a variety of agencies provide data and recommendations to the individual State Insurance Commissioners whose job it is to regulate the insurance business within their borders on a day to day basis.
These oversight bodies are in place mainly to protect consumers by helping to ensure that insurance companies have sufficient financial strength and reserves to pay out claims from their customers. States usually set a minimum dollar threshold for car insurance policies within their jurisdiction. In other words, in order drive in a state you must carry coverage that has a reimbursable amount greater than or equal to a certain minimum. For example: in Colorado, your auto insurance must provide a minimum of $$25k of bodily injury liability per person, $50k of of bodily liability per accident, and $15k of property damage liability for any one accident.
Many consumers, though, want additional financial protection over and above the bare minimum. So most insurance carriers will provide additional options to increase the dollar coverage and thereby reduce your overall financial exposure in the result of a catastrophic accident. Most carriers also provide a range of types and coverage besides bodily and property liability. You can opt for collision insurance which will help pay some of the costs of repairing your car after a fender bender. You can get fire insurance and theft insurance. You can insurance yourself for the loss of audio equipment and broken windshields. And you can also choose for at least a few levels of deductibles. A deductible is the level you must first pay out of your own pocket before the insurance company starts paying out on a covered claim.
Rates by age
|Age bracket||GEICO avg. annual premium||Farmers avg. annual premium|
So, it should come as no surprise to hear that with all of those options, the price of car insurance is extremely variable. Because your rates will also depend upon your own personal factors. Some determinants of your rates can include you place of residence, the amount of driving experience you have, the type of car you have and whether you have a history of getting moving violations and prior car accidents. In this type of consumer product environment, smart shopper will cast a wide net and seek prices from more than one company in order to make sure they are getting the best deal they can.
All About Geico
Geico is one of the largest and best known insurance companies in the country. Their ubiquitous ads feature a variety of sometimes edgy, sometimes droll pitchmen (cavemen, lizards, pigs, etc.) have entertained viewers and given them great name recognition. But it isn’t just their ads that make Geico a successful company. They are a well run, financially solid firm, a bright star in the Berkshire Hathaway conglomeration’s constellation of companies. Warren Buffet was an small investor in Geico back in the 1950’s and their solid performance over time enticed him enough to buy out the company.
Geico does business in all 50 states and has their headquarters in Chevy Chase Maryland. They provide a wide array of personal insurance products, business insurance, products and specialty insurance products (travel, pet, and jewelry insurance among others). The firm enjoys an “A++” rating from independent analyst A.B. Best putting it in the top 5% of insurance companies.
Geico Discounts and Savings
The company offers many discounts to its auto insurance product so, take a close look at how you may benefit. Geico’s original business plan targeted government workers as a core customer base and those workers, as well as members of the armed services are still offered discounted premiums today. And you can still get those discounts even if your are retied from government work. Geico offers a substantial discount of up to 25% for service members who are deployed to danger zones.
Don’t worry, there are plenty of savings options available even if you’re not a soldier or government worker. Safe drivers enjoy discounted prices at Geico just as they do with virtually every carrier. If you elect to make Geico the single carrier for all of your personal insurance needs (auto, home, renter, etc.) they may discount. If you have more than one car to insure you could get a multi-vehicle break on your cost.
All About Farmers
The Farmers Insurance Group was founded in California in 1922 by a two business partners, John Tyler and Thomas Leavey, who came from rural backgrounds. As the insurance industry was growing, the two men realized that farmers and ranchers had lower accident rates than urban drivers and were, therefore a lower risk. They felt this segment was being largely overlooked by bigger insurance companies at the time, so they started their own firm to service them. The company prospered but a series of takeovers and then losses from west coast earthquakes, the company was eventually taken over by the Zurich Financial Services group. Who remains Farmers corporate parent to this day.
Farmers reports annual revenue of approximately $11 billion and offers a full range of insurance and financial services products.
Farmers Discounts & Savings
If you are a driver with a clean record of no accidents or moving violations, Farmers will likely give you a preferred rate on your insurance. Like with any insurance provider, the more expensive your car is, the higher your premiums are likely to be, so keep that in mind when you’re shopping around. Consider what level of deductible you are comfortable paying. If you feel like you can safely carry a policy with a higher deductible payment, your premiums will be lower for the term of your policy. One other thing to bear in mind. Like virtually all other insurance companies, some discounts from Farmers may vary from state to state. So do your research before you buy.
Discounts: Farmers and GEICO
|Multiple Policy Discount||up to 10%||Varies|
|EV/Hybrid Discount||up to 5%||--|
|Senior Adult Discount||Varies||Varies|
|Professional organization discount||Varies||--|
|Mature driver discount||Varies||--|
|Paid in full discount||Varies||--|
|Provider Switch Discount||Varies||--|
|Home Owner Discount||Varies||--|
|Preferred payment discount||Varies||--|
|Paperless documents discount||Varies||--|
|Anti-lock Brake Discount||Varies||up to 5%|
|Driving training discount||Varies||Varies|
|Electronic Stability Control||Varies||--|
|Affinity group discount||Varies||--|
|Driving Habits Discount||Varies||--|
|Good Payer Discount||Varies||--|
|Claims Free Renewal Discount||Varies||--|
|Youth Driving Discount||Varies||--|
|Early Quote Discount||Varies||--|
|Anti-Theft Device Discount||Varies||up to 25%|
|Defensive Driver Discount||Varies||Varies|
|Good Driver Discount||Varies||up to 26%|
|Good Student Discount||Varies||up to 15%|
|Military Discount||Varies||up to 15%|
|Multiple Vehicle Discount||Varies||Varies|
|Passive Restraint Discount||Varies||up to 25%|
|Student Away at School Discount||Varies||--|
|Daytime Running Lights Discount||Varies||up to 3%|
|On Your Own Discount||Varies||--|
|Federal Employee Discount||--||up to 25%|
|Emergency Deployment Discount||--||up to 25%|
|Seat Belt Use Discount||--||up to 15%|
|Accident Free Discount||--||Varies|
Comparing car insurance rates
The very best way to see if Farmers or Gecio will give you the better deal is to ask them to give you quotes on the exact same products and levels of coverage. And our web site at General.com has a tool that can do just that with only a few clicks. Be a smart consumer – compare and save.