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Geico vs. Mercury

The insurance industry in general works by spreading economic risk across a wider pool of people. Everyone in the pool pays a little, and then the relative few that have a triggering event, can be reimbursed for the loss. This is exactly how car insurance works. In return for premiums, or recurring payments, you will be indemnified by your insurance provider. This means that in the event you hot someone or something with your car, or someone hits you, your insurance will defray the resulting costs of damage to person or property. You make a claim against your policy and your insurance carrier will send you a check for the damage. Within specific limits, of course. Few, if any, insurance products come without well defined limits of coverage.

Automobile insurance is required of motorists in virtually all states (New Hampshire is an exception). Operating a vehicle without insurance could lead to a ticket, a fine, or even some jail time if you’re a repeat offender. And just think of the economic exposure you’d face if you got into a serious accident and were not insured.

Buying car insurance is more complicated than obtaining other consumer goods and services. For one thing, few, if any, insurance carriers provide a single price for insuring every single customer. Your own price will depend on personal details such as where you live (there are different frequencies of accidents in different locales), the make, model, and age of your vehicle, and a variety of other factors. Insurance companies offer a menu of coverages. You can get just simple liability insurance, which will limit your premiums but narrow the range of options that are covered. You can opt to get additional coverages such as collision insurance, which would help pay some of your car repair bill if you got into a fender bender. There are also add-ons such as fire insurance, theft insurance, roadside assistance in the event you car breaks down, and emergency replacement vehicle case you car needs to spend time in the repair shop. These add-ons increase your protection but they also increase the cost of your policy.

Insurance rates by age

Age tier GEICO avg. annual premium Mercury avg. annual premium
Teens $3,508 $3,417
20s $1,438 $1,554
30s $1,218 $1,554
40s $1,189 $1,115
50s $1,160 $1,086
60s $1,065 $1,034

All About Geico

The company known as Geico (it is an acronym of their full, original name: the Government Employees Insurance Company) was founding during the Great Depression in the 1930’s. A Texas husband and wife entrepreneurial team team by the name of Leo and Lilian Goodwin had a business plan to start an insurance company that catered to government workers, one of the few stable, middle class market segments at that time. They were successful and in short order moved their operation to Washington, D.C. to be closer to the biggest concentration of their core demographic.

Geico grew over the year and eventually expanded into other insurance coverage lines such as home owners insurance, renters insurance, boat insurance, medical malpractice, and workers’ compensation among others. The company today is an important part of the Berkshire Hathaway investment conglomerate. Warren Buffet, the head of Berkshire, is famously on the look out for well positioned and well run companies to add to his empire and he first noticed Geico when he was still in Business school in the 1950’s. Geico is headquartered in Chevy Chase, Maryland, employees about 40,000 people and reports annual revenue in the neighborhood of $25 billion. Geico ads are well known for being both humorous and effective. Their ads have featured a caveman, a cockney-accented lizard, a laughing pig, among others.

Geico Discounts and Savings

Geico offers a range of discounts that you may qualify for. Because of the many different insurance lines they offer, you could save by bundling you car insurance with, say, homeowners, renters, or boat insurance. The company states that you could up to a 26% discount if your driving record is accident-free for the last 5 years. Various safety features in your car such as an airbag and anti-theft device could also help lower your premiums. The company operates in all 50 states but there may be some variation in the levels of discounts you may be eligible for. Do your homework and get a free price quote from Geico to see how you would do.

All About Mercury

The Mercury General Corporation is a publicly traded insurance company headquartered in Los Angeles, California. Mercury founder, George Joseph was a World War II veteran who later got a degree in mathematics on the GI Bill. After graduation, Joseph works as an actuary in the insurance industry before striking out on his own in 1961. He sought to create a low cost insurance alternative for folks on the west coast. By 1998 Mercury had over 1 million vehicle under its policies in the state of California. Mercury has spread out since their beginning and operates in eleven states across the country.

Mercury also provides homeowners insurance, personal liability, business insurance and a variety of other products. The company reports annual revenue of over $3 billion and employs over 4,000 people, and has an “A” rating from insurance industry rating agencies.

Mercury Discounts & Savings

You should first check to see if you live in one of the eleven state that Mercury operates in In addition to California, Mercury sells their products in New York, Florida, Illinois, Arizona, New Jersey, Texas, Oklahoma, Virginia, Georgia, and Nevada. Since Mercury offers bundling discounts, you could save up to 15% on both your car and homeowners insurance if you can bundle them. Other ways that Mercury offers to save money are by paying your premiums in advance and increasing your deductible to a higher level. As always, do some due diligence in order to save money.

Discount table

Discount Type GEICO Mercury
Good Driver Discount up to 26% up to 18%
Passive Restraint Discount up to 25% up to 5%
Federal Employee Discount up to 25% Varies
Emergency Deployment Discount up to 25% --
Anti-Theft Device Discount up to 25% up to 5%
Seat Belt Use Discount up to 15% --
Good Student Discount up to 15% up to 10%
Military Discount up to 15% --
Anti-lock Brake Discount up to 5% --
Daytime Running Lights Discount up to 3% --
Driving training discount Varies --
Accident Free Discount Varies --
Multiple Policy Discount Varies up to 10%
Multiple Vehicle Discount Varies up to 26%
Organization Discount Varies Varies
teenSMART Discount Varies --
Defensive Driver Discount Varies --
Senior Adult Discount Varies Varies
Good Credit Discount -- up to 73%
Student Away at School Discount -- up to 10%
Public Safety Professional Discount -- Varies
Paid in full discount -- Varies
Professional organization discount -- Varies
Occasional driver discount -- Varies
VIN Etching -- Varies
Low Mileage Discount -- Varies

Comparing car insurance rates

With all of the variables involved in pricing our car insurance rates, we can’t say which of these two companies could save you money. But we can offer you a easy way to see. Our web site at General.com provides an easy way to get free price quotes so you can compare your prices. Be a smart shopper and make companies compete for your car insurance business.

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