Compare State Farm vs. GEICO Insurance

two-car-insurance-companies
The very best showdowns, from sports to politics and commerce, always put the two biggest, boldest teams, candidates or companies against one another. When it comes to auto insurance, this means a stand-off between State Farm and GEICO. But which auto insurance company is right for you and your policy coverage needs? – How will you determine how they best measure up against each other?

Why Compare State Farm vs. GEICO?

Comparing the No. 1 and No. 2 American car insurance companies may reveal one or two unique reasons that may tip the scale to either side. With State Farm and GEICO offering such unique discounts and using different algorithms to determine premiums across the U.S., odds are you’re going to find two completely different rates. But that’s only one piece of the puzzle. Recommendations from family and friends, perceived customer service levels and other factors all go into helping you determine the best auto insurance provider for you. In the case of State Farm going head to head against GEICO, we have a privately held company representing State Farm and a subsidiary of the fifth-largest public company in the world, Berkshire Hathaway, representing GEICO.

About State Farm

State Farm has played the ‘Like a Good Neighbor’ ad on the small screen since 1922 when the company was founded by G.J. Mecherle. Today State Farm is the world’s largest auto insurance company, with 65,000 global employees and agents serving more than 80 million policies. As of Sept. 2015, CEO Michael L. Tipsord has manned the helm of the company, which expanded into the financial services vertical in 1999. The company currently has over 65,000 employees and more than 18,000 certified insurance agents on duty.

state farm consumer affairs reviewAdvantages of State Farm

When you’re the largest auto insurance provider in the world, your sheer wealth of resources provides an advantage that the smaller insurers may not always be able to compete against. This translates to more competitive rates and a more efficient service. State Farm and its dozens of subsidiaries, from State Farm Fire and Casualty Company to State Farm Mutual Insurance Company of Texas, balance this size with focused areas of specialization. The result is highly satisfied and loyal customers: 93 percent of State Farm drivers say they’ll renew their policies and 85% of customers recommend the company to family and friends. According to Consumer Affairs, State Farm is getting 3 out of 5 stars as of November 9, 2016. To read more about State Farm Reviews on Consumer Affairs, Click Here.

 

State Farm’s Discounts and Savings

Don’t forget to factor in car insurance discounts when doing your rate math. State Farm complements its competitive premiums with the following discounts:

  • Multiple Automobiles – Up to 20% discount
  • Good Driving Discount (three years without moving violations or accidents) – Up to 10% discount
  • Drive Safe & Save Discount (for using a telematics device) – Up to 50% discount
  • Steer Clear Safe Driver Discount (a program for drivers under age 25) – Up to 15% discount
  • Bundling Discount – Save up to 17% by incorporating homeowners, condo, renters, or life insurance plan
  • Good Student Discount – College student can save up to 25% just be getting good grades which can sometimes last after you graduate college up until you turn the age of 25
  • Driver Training Course & Defensive Driving Course Discount – If all teenage drivers on your policy complete a driver education course approved by State Farm, you may be eligible for this discount. You can also save by taking an approved defensive driving class
  • Student Off at School Savings – If your kids are off to college, you could be eligible for this discount if they are under the age of 25
  • Anti-Theft Discounts – Available to all drivers who have installed an anti-theft alarm system or device approved by State Farm

About GEICO Auto Insurance

GEICO has ridden a wave of advertising over the past few decades to become the No. 2 provider of car insurance in the United States. With a little help from a caveman, gecko and now a pig – they spend about $1 billion on annual advertising – the company throttled its growth when it became a subsidiary of Warren Buffett’s Berkshire Hathaway in 1996. Founded in 1936 by Leo and Lillian Goodwin, “GEICO” stands for Government Employees Insurance Company because military personnel and government employees were targeted as the insurer’s first customers. That commitment remains steadfast today.

GEICO Consumer Affairs ReviewAdvantages of GEICO

With the financial backing and deep pockets of Berkshire Hathaway, GEICO has aggressively grown over the past two decades – and backed that expansion with a strong commitment to customer service. The company famously provides a connection to a real customer service rep 24/7. Despite this growth, the insurer has stayed true to its roots by offering special discounts and services for military personnel and government workers. Additionally, GEICO offers a number of other policies, ranging from flood insurance to identify theft insurance, many of which can be bundled together for added discounts. According to Consumer Affairs, GEICO is getting just over 2 out of 5 stars as of November 9, 2016. To read more about GEICO car insurance company reviews on Consumer Affairs, Click Here.

GEICO’s Car Insurance Discounts and Savings

GEICO targets the U.S. driver with a number of great programs. Be sure to see which you qualify for – and how big of a discount you could net. Here are a few of GEICO’s available discounts:

  • Vehicle Equipment Discount – For features such as driver-side airbags (25% discount) and full-front seat airbags (40% discount)
  • Driving History Discount: Save up to 26% for achieving a five-year accident-free record
  • Good Student Discount: Up to 15% discount on certain coverages with a ‘B’ average or better and if you’re under the age of 25
  • Military and Emergency Deployment Discount: Save 15 to 25% whether you’re active duty, retired, in the National Guard or Reserves or have experienced an emergency deployment.
  • Daytime Running Headlights – This is a small discount but could end up saving you 1% on your annual premium
  • Anti-theft System Integration Discount – This GEICO car insurance discount could save you up to 25% under your comprehensive coverage
  • Multiple Car Discount – This discount can wind up saving you 25% on your car insurance policy

State Farm vs. GEICO Which One Works for You?

We didn’t say that seeing how State Farm and GEICO stack up against each other would be easy. But we’re hoping that you have one or two takeaways to help you separate one of these two top-rated auto insurance behemoths from the other.

Virginia and Mid-Atlantic 2016 J.D. Power Insurance Study

One great way to see how they stack up against each other in terms of customer satisfaction is to check out J.D. Power’s 2016 U.S. Car Insurance Study. Below we see that in the Mid-Atlantic and Virginia Region, State Farm has 3 power circles opposed to GEICO’s 2 power circles.

2016 Virginia J.D. Power Insurance Study

Texas Region 2016 J.D. Power Insurance Study

Reviewing the Texas Region, we see that State Farm really jumps ahead with 4 power circles over GEICO’s 2 power circles. Another thing to notice here is that one of the smaller car insurance insurers, Texas State Bureau, has surpassed all of the bigger car insurance companies with a 5 power circle rating. Keep this in mind when comparing some of the smaller insurance companies rates against the larger insurance companies.

2016 texas jd power insurance study

Your premium, discount, and what you hear about State Farm and GEICO from the folks you trust can go a long way in determining who you’ll sign up with. And remember: this doesn’t have to be a permanent relationship. Rates increase and decrease over time, which is why drivers should be proactively seeking out the best insurance quotes possible. To find out who has the best car insurance rates, start comparing today!

Compare GEICO & State Farm Against Other Car Insurance Companies

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Based on a survey of 100 California Residents. Average savings determined via a comparison of their selected policy against their self-reported annual premium.