Do you need auto insurance? Let’s compare two popular insurance providers. In this Safeco Vs State Farm comparison, we’ll take a look at pricing, apps, claims, and more to determine the best company for you and your family.
Safeco has almost a century in the insurance industry. Safeco was founded in Seattle, Washington, in 1923 by Hawthorne K. Dent. In 2008 Safeco was acquired by Liberty Mutual for $68.25 a share.
There is no other insurance company in the United States that insures more cars and homes than State Farm. State Farm was founded on July 7, 1922 by Illinois farmer G.J. Mecherle. Now State Farm is one of the largest companies in the world. In fact, State Farm ranked No. 33 on the Fortune 500 list of largest companies.
Insurance rates vary. Rate factors include gender, state, car type, coverage type, marital status, eligible discounts, etc.
On average, I have found Safeco to be slightly cheaper than State Farm and they also offer tons of discounts for their customers. I encourage you to compare quotes today to see which company gives you better rates.
Claims comparison using J.D. Power.
Every year J.D. Power does a study of the claims satisfaction of the top insurance companies. J.D. Power received responses from over 11,000 auto insurance customers who settled a claim within the past six months. Let’s find out who scored well and who didn’t.
On a 1000-point scale State Farm received 865 points in J.D. Power’s Overall Customer Satisfaction Index Ranking. State Farm scored higher than a majority of the companies on this the list.
However, Safeco scored lower than a majority of the companies on the list with 820 points. In fact, Safeco was the lowest insurance company on the list by 17 points.
Which company handles customer complaints better?
Better Business Bureau allows people to know how companies handle customer complaints. BBB factors in complaint volume, unanswered complaints, type of business, and more.
Safeco is not yet BBB accredited. However, Safeco is a member of Liberty Mutual Group and Liberty Mutual received an “A” grade in their rating system.
BBB gave State Farm the highest grade possible which is an “A+” in their rating system.
It’s hard for me to recommend some companies because they have a low financial rating. Financial strength matters when you get into an accident or something happens to your auto or home and it’s time to handle your claim. A company with more money is better equipped to pay claims.
It’s simple, would you rather give to someone when you have $10,000 in your bank account or when you only have $50 in your bank account? If you’re honest, you’re more likely to give to someone when you’re secure financially and you have more at your disposal. When it comes to auto insurance you want the company that is able to pay you in case of an emergency.
State Farm has well over $100 billion dollars in assets. In fact, it was reported that in 2015 State Farm had $241 billion dollars in total assets.
State Farm was rated high in multiple financial strength reviews.
- A.M. Best gave State Farm an A++ financial strength grade.
- Moody’s gave State Farm an Aa1 financial strength grade, which is amazing.
- Standard & Poor’s gave State Farm an AA financial strength grade.
Safeco is backed by the financial strength of Liberty Mutual. It was reported in 2016 that Liberty Mutual Insurance had $121.7 billion in consolidated assets.
Liberty Mutual ranks well in various financial reviews as well.
- A.M. Best gave Liberty Mutual an A financial strength grade.
- Moody’s gave Liberty Mutual an A2 financial strength grade, which was a good rating grade.
- Standard & Poor’s gave Liberty Mutual an A- financial strength grade.
Discount and features
State Farm discounts
Drive Safe & Save – This is a telematics program that allows you to prove your driving skills. State Farm customers can save over 15% on their premium with this program. Not only are you able to save after the program is over, but you are also able to save when the program is initiated.
Steer Clear – This discount allows customers to save up to 15% on their auto insurance. To qualify for this discount, you either have to be a new driver or a young driver under 25 without any at-fault accidents or moving violations within the past 26 months.
Multiple Auto – When multiple vehicles in your household are insured by State Farm you can save up to 20% on your policy.
Good Student – Save up to 25% by receiving good grades. With State Farm, you can save with this discount even after you graduate. (Discount ends at the age of 25.)
Student Away – You may be eligible for this discount when you have a child who is away for school, but leaves his vehicle at home.
Driver Training – The operators of your car have to complete an approved driver education course. (Drivers must be under 21.)
Accident Forgiveness – With Safeco if you ever get into an accident you will not have to worry about your insurance provider increasing your rates. Your first accident will be automatically waived.
RightTrack – RightTrack is similar to State Farm’s Drive Safe & Save program. Safeco drivers can end up saving up to 30% on their premium. RightTrack is available in AR, AL, AZ, CO, CT, FL, GA, IA, ID, IL, IN, KS, KY, LA, MA, MD, MI, MN, MO, MS, MT, ND, NE, NH, NM, NV, NY, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, and WY.
Low-mileage – It’s unfair for low-mileage drivers to pay high insurance rates. Safeco understands this and they allow their customers to save up to 20% on their premium with their low-mileage discount. This discount is perfect for those who drive less than 8000 miles a year.
Good student – Good students who maintain a “B” average or are in the top 20% of their class can save on auto insurance.
Own your home – Receive a discount with Safeco for owning a home.
Accident prevention course – Some drivers are able to save by completing an approved accident prevention course.
Safeco’s roadside assistance services offer towing, jump start services, lookout services, and fuel/fluids delivery.
What differs State Farm roadside services from a lot of other roadside services is that State Farm gets dirtier than others. State Farm’s roadside assistance offers mechanical labor for up to one hour.
Along with mechanical labor State Farm customers are given towing to the nearest repair location. Customers are also given gas delivery, oil delivery, battery delivery, and tire replacement. Just like with Safeco, if you happen to ever lock your car keys in your car, you are given a free locksmith.
Mobile app features
State Farm’s Pocket Agent app:
- Steer Clear
- Drive Safe & Save
- Roadside services
- Pay bill
- Submit auto claims
Safeco’s mobile app:
- Report an accident
- Tap to Call
- Update Policy
- Check claim status
- View ID Cards
State Farm and Safeco have their own advantages. State Farm is better at handling claims. However, Safeco on average is slightly cheaper. Ask yourself, what do you desire most?