State Farm, GEICO, Allstate, Progressive, and Farmers are the five largest auto insurers in the United States. Each is financially stable, has been in business for many years, and runs strong marketing campaigns. So why choose one over the others?
It’s a reality that different customers may be looking for specific benefits among auto insurers, and no one of the Big Five excels in every category. That is why we will describe some characteristics of each of them and in what points they stand out:
GEICO
It is characterized by being the cheapest insurer with good benefits. It is the cheapest insurer in nearly a third of all cities in the country and is, therefore, one of the top three providers in more than half of them. If you’re willing to give up a hefty agent relationship for a cheaper rate, GEICO is probably the company of choice.
However, if customer service is important to you, GEICO doesn’t have a particularly good track record and state Farm would be a better choice.
On the other hand, GEICO Mainly offers car insurance services online and ranks as the cheapest operator of the five largest companies. Customers can shop for insurance and file claims online without having to speak to an agent, unlike Allstate. As a result, GEICO can save costs by paying for a network of agents, which translates to cheaper prices, but less personal guidance.GEICO also stands out as the cheapest insurer at 12% compared to progressive and 44% compared to Allstate.
StateFarm
It is the largest insurer of the five, serving millions of clients across the country. And while it may not have the best price, it does have a strong agent network. Plus, a wide range of flexible policies and a streamlined website made State Farma a clear winner in terms of overall customer experience.
State Farm has a strong agent force, the largest of any provider. It also focuses on serving consumers well in online channels. However, according to JD Power, roughly 50 percent of customers still prefer to buy a policy with an agent, rather than online, so if you prefer a more lively interpersonal relationship, then state Farm would still be better at guaranteeing you an excellent shopping experience.
Allstate
It offers a greater number of discounts compared to Farmers, State Farm, and other companies, so it remains a strong competitor for drivers looking to save money on their auto insurance.
Another feature worth mentioning is Allstate’s “Drivewise” Program, which is great for customers who drive less than 7,500 miles per year. The program comes with a device that you can strap to your car and it measures the distance you drive as well as your driving habits. A combination of clean and incident-free driving can lead to even more discounts on your annual premium.
Progressive
It is quite a similar dogecoin that it operates primarily online, with a few independent agents spread across the country. It has two key aspects: how to allow your customers to compare your rates with other competitors and your Snapshot program. Comparing auto insurance rates is critical to getting the best deal. Progressive makes it a little easier by giving you the rates.
Farmers
It sells car insurance through its network of agents and its online portal. It offers a bit of both when it comes to price and service. It’s not the most expensive or the cheapest, but it comes with a pretty solid service record.
Farmers rank second in claims processing and shopping experience when compared to the other top four carriers.
This insurer has the “Accident Forgiveness”. This means that it can forgive minor incidents, such as a speeding ticket, which can save you a big increase in annual rates.
Obtaining Incident Forgiveness is a bit easier than Accident Forgiveness, which takes three years of clean driving. After the first renewal of your policy with Farmers, you automatically get incident forgiveness; so if you get caught speeding, you can breathe a little easier.