State Farm vs. Geico: What is Right for You

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Need new car insurance? With all the information out there, it can be hard to tell which company has your best interest at heart. Plus, you have a unique driving history and insurance needs. How do you pick the plan that’s right for you? First, compare the insurance plans you’re considering with your current coverage. You may already have the best deal you can get. When you’ve decided to switch, make sure to look for the factors that can protect you best and save you the most money. Need more money hacks, business ideas, or coaching? Look no further.

Let’s start by looking at two of the biggest names in the business: State Farm insurance reviews and Geico insurance reviews.

Premiums

Geico has the lowest monthly payments and scored higher in the value for money category than State Farm. The only lower rates on the board belong to USAA, with rates exclusively for the military and their families. It’s safe to say Geico is the cheapest plan no matter what kind of driver you are. Also, Geico seems to have the best rates for new or young (teen) drivers. However, these rates can skyrocket after an accident or ticket, and some customers report being dropped from coverage. State Farm doesn’t have the same negative results after traffic violations, but it has much higher premiums for drivers with bad credit.

If you have a sketchy driving history, you may want to stick with State Farm. They have fewer premium increases after accidents, DUIs, and traffic tickets. If you’re a good driver with a good record, Geico will certainly give you a better deal for your money. Both companies offer discounts for bundling health or life insurance, additional car policies, and newer, safer vehicles. This is another way to get a lower rate.

Customer Service

State Farm wins the customer service battle, while Geico clocks in lower on the list. Part of the high numbers for State Farm is the fact that there is an agent nearby no matter where you are. Only two states (Massachusetts and Rhode Island) are outside the State Farm coverage area. Having a community member who is also your insurance representative goes a long way toward making people happy. Just as with the low premium rates, State Farm comes in second only to USAA (reserved for military families) in terms of customer care. State Farm also pleases people by keeping their rates low, even after an accident or ticket. Keep in mind each agency and representative will be different, so customer service varies, but it’s safe to say if you’re looking for a hometown solution that doesn’t break the bank, go with State Farm.

Claims

In the claims game, Geico has a better ranking for customer claims, and more customers are satisfied with the outcome of their claims. However, some say Geico’s customer service suffers during a claim. In fact, most of the customer complaints from Geico customers had to do with filing a claim or how they handled the claim. Other complaints arose around the raising of rates both in premium and after an accident. State Farm has a better record for handling claims quickly and hassle-free, but the satisfaction of its clients might not be as high. State Farm had better customer service, loyalty, and renewal rankings, but people recommend Geico slightly more.

Customer Satisfaction

Most State Farm customers claim satisfaction with their insurance, and many have renewed or would renew their coverage. They rank slightly higher than Geico in the customer loyalty department, but Geico customers often recommend their coverage more than State Farm customers. Among drivers who did not submit a claim, over fifty percent said they would renew their coverage with Geico over another company. For those who did submit a claim, the number rose almost twenty percent. As far as customer satisfaction goes, this one is a draw. Both companies appear to be great at pleasing their customers.

Geico is rated A+ by the BBB and AM Best, while State Farm is not rated by the BBB but has an AM Best score of A++. Both are popular insurance companies with (nearly) nationwide coverage that offer the best prices and coverage outside USAA. Both rate well in customer service, customer satisfaction, and financial strength. Your situation is likely the best predictor of which company would be better for you. Specifically, your driving history, coverage needs, and preferences about the type of agency are the best indicators. Either way you choose, you won’t get a bad deal with Geico or State Farm.

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