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GEICO vs. State Farm

Smart shoppers look to stretch their dollars as far as possible, especially when buying products like insurance which is a lot more complicated than your average consumable product. The auto insurance industry, like the insurance business as a whole, is regulated by a web of Federal and State regulations that assist and protect consumers as much as possible from entities that don’t have the financial wherewithal to be there when you need them. Trying to decide between policies from GEICO and State Farm can seem daunting to the average consumer.

Our web site at General.com was built to enable consumers to get free, multiple price quotes for automobile insurance, helping you to more easily decide which provider is best for you. You will be able to funnel your own criteria for price quotes to competing companies through our platform helping to ensure that you get the best deal. Period.

How About GEICO?

The Government Employees Insurance Company, known more colloquially by their acronym, GEICO, was started in Texas back in the mid 1930’s by Leo Goodwin and wife, Lillian. Leo had previously worked for one of the earliest auto insurance companies but decided to strike out on his own. By 1937 Leo and Lillian had moved GEICO to Washington, D.C. to be closer to his target market of federal employees. GEICO believed that these workers had more stability than the average customer in Depression era America.

GEICO’s business grew steadily over the years, eventually catching the interest of legendary investor Warren Buffet, who purchased his first share of the company while in grad school in New York City in the early 1950’s. Eventually Buffet purchased all outstanding share of GEICO, through his we3ll known holding company, Berkshire Hathaway. Today, GEICO is an important part of the Berkshire conglomerate, insuring approximately 24 million vehicles owned by 15 million people.

Can You Save Money With GEICO Insurance?

Automobile insurance is not a one size fits all proposition like many consumables in the marketplace. GEICO, like other providers of automobile insurance, looks at a variety of geographic factors, demographic factors, car information and personal information in order to come up with a proposed premium on their policies. Information like your zip code lets GEICO know if you’ll be driving in an urban, suburban or rural environment. Each location has its own risk profile which drives pricing decisions. In addition, automobile insurance take into consideration such factors as your driving safety record, the type of car you drive, your age and a variety of other factors. Additionally, GEICO offers a range of insurance products that go from basic to comprehensive and all points in between. They also may offer discounts for affiliations such as U.S. Service personnel or veterans.

Collecting all this data can be complicated and time consuming for shoppers who want to compare prices across providers. And that’s where we at General .com come in. We have built an online platform that allows you, the consumer, to aggregate your profile and funnel it easily to a variety of insurance providers. In return you will get apples to apples quotes that will help you get the car insurance product you want at the best prove possible.

Next, Let’s Look at State Farm

State Farm Insurance is a mutual company - in other words, it is owned collectively by its policy holders. Typically, mutual companies believe that, free from the near term profit pressure felt by many publicly traded companies, they can make better long term decisions for the benefit of both company and customer. Mutuality has certainly not hindered State Farm’s growth as they are considered the largest provider of property and casualty insurance in the United States, as well as being the largest American provider of automobile insurance.

The firm was founded in 1922 by an actual retired Illinois farmer, George Mercherle who’s goal was to provide fair automobile insurance coverage to consumers at fair prices. Over the decades State Farm grew, branching out into other insurance and financial services markets, and creating a nation wide distribution network of agents.

Today State Farm has been ranked 33rd in the list of Fortune 500 companies and has over 44 million automobile insurance policies in force. In addition, their well known advertising jingle, “Like a good neighbor, State Farm is there”, has doubtlessly been hummed by millions of Americans since its introduction in 1971

Age bracket GEICO avg. annual premium State Farm avg. annual premium
Teens $3,508 $5,820
20s $1,438 $2,379
30s $1,218 $2,379
40s $1,189 $1,587
50s $1,160 $1,558
60s $1,065 $1,485

Will you get better pricing from State Farm?

All auto insurance providers will reward safe drivers with very competitive quotes, so it’s up to you to do your best to maintain a good driving record. However, insurance companies are happy to provide coverage to those of us with less than perfect driving records. Companies like State Farm may offer affiliation discounts and/or special sales deals that you may now be aware of. It’s not easy to be vigilant about pricing in a complex product like automobile insurance. The best way to do your market research for State Farm and other companies is to have your ear to the ground on a regular basis. Without doing that, you may be missing out on deals and paying more than you need to for your auto insurance. By using the General.com platform you can quickly and easily get price quotes from State Farm and their market competitors.

Discounts Geico Insurance Company State Farm Insurance
Accident free
Bundling policies
Defensive driving course
Educator
First Responders
Good driver
Good student
Low mileage
Military
Multiple vehicles
New car
Pay in full
Safe vehicle
Telematics program

GEICO vs. State Farm – Which Is Best?

It is not a simple thing to determine with certainty that GEICO, say, has lower rates than State Farm because so much of insurance product pricing is driven by your own unique mix of factors. You need a system or mechanism that can create your profile and coverage needs and generate quotes based on the exact same information. Without that, it’s hard to tell whether your pricing information is really based on the same criteria.

The Bottom Line for Car Insurance Savings

Clearly quantifying your personal data and choosing similar products from among multiple coverage options will enable to to best see head to head pricing information from competing automobile insurance providers. And here at General, we’ve got he platform to do that job. We’ll simplify the organization of your data and coverage needs and funnel that information to he companies competing for your business. And you’ll be able to see clearly from the quotes, which is the best deal for you. We’re pretty confident you’ll wind up saving money.

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