Is Allstate Cheaper than Geico?

06/20/202406/20/2024 - by Mike Ross

Is Allstate Cheaper than Geico – When it comes to selecting car insurance, two names that frequently appear are Allstate and Geico. Both companies are giants in the insurance industry, known for their extensive coverage options and customer service. However, a common question arises: Is Allstate cheaper than Geico? In this article, we will compare Allstate and Geico in terms of pricing, coverage, customer service, financial stability, and other crucial factors. By the end of this analysis, you should have a clear understanding of which insurance provider might be better for you based on various factors, including cost.

Table of Contents

Overview of Allstate and Geico – Is Allstate Cheaper than Geico

Allstate

Allstate was founded in 1931 and has grown to be one of the largest insurance providers in the United States. Known for its slogan, “You’re in good hands with Allstate,” the company offers a wide array of insurance products, including auto, home, renters, and life insurance.

Website: www.allstate.com
Phone Number: 1-800-255-7828

Geico

Geico (Government Employees Insurance Company) was established in 1936 and is currently the second-largest auto insurer in the United States. Geico is known for its affordable rates, clever advertising campaigns, and the well-recognized gecko mascot. Geico offers various types of insurance, such as auto, homeowners, renters, and motorcycle insurance.

Website: www.geico.com
Phone Number: 1-800-207-7847

Pricing Comparison: Allstate vs. Geico – Is Allstate Cheaper than Geico

Average Premiums

Insurance premiums can vary widely based on several factors, including the driver’s age, location, driving record, and the type of vehicle. Here, we compare the average premiums for both companies.

Allstate’s Pricing

Allstate’s average annual premium for full coverage is around $1,880, which is higher than the national average of $1,674. For minimum coverage, Allstate’s average annual premium is approximately $696.

Geico’s Pricing

Geico is known for its competitive pricing. On average, Geico’s annual premium for full coverage is about $1,268, which is significantly lower than the national average. For minimum coverage, Geico’s average annual premium is around $409.

Detailed Rate Comparison – Is Allstate Cheaper than Geico

To understand the cost difference between Allstate and Geico, let’s look at specific rate comparisons based on different driver profiles and scenarios.

Driver Profiles

Young Driver (Age 18-25)
- Allstate: Average annual premium for full coverage is $4,000.
- Geico: Average annual premium for full coverage is $3,000.
Middle-Aged Driver (Age 35-45)
- Allstate: Average annual premium for full coverage is $1,800.
- Geico: Average annual premium for full coverage is $1,200.
Senior Driver (Age 65+)
- Allstate: Average annual premium for full coverage is $1,600.
- Geico: Average annual premium for full coverage is $1,100.

Scenario-Based Comparison

Good Driving Record
- Allstate: $1,700 per year for full coverage.
- Geico: $1,200 per year for full coverage.
Accident on Record
- Allstate: $2,500 per year for full coverage.
- Geico: $1,800 per year for full coverage.
High-Mileage Driver
- Allstate: $2,000 per year for full coverage.
- Geico: $1,500 per year for full coverage.

Factors Influencing Pricing – Is Allstate Cheaper than Geico

Several factors influence the cost of car insurance premiums for both Allstate and Geico:

Driver’s Age: Younger drivers often face higher premiums due to their lack of experience.
Location: Urban areas usually have higher rates due to increased traffic and accident risks.
Driving Record: Drivers with a clean record typically receive lower premiums.
Vehicle Type: Luxury and high-performance vehicles generally have higher insurance costs.
Credit Score: In some states, insurers can use credit scores to determine premiums.

Discounts Offered

Both Allstate and Geico offer a variety of discounts that can help reduce the cost of insurance.

Allstate Discounts

Allstate provides numerous discounts, including:

Multi-Policy Discount: Save when bundling home and auto insurance.
Safe Driver Discount: For drivers with a clean driving record.
Good Student Discount: Available for students with good grades.
New Car Discount: For insuring a new car.
Anti-Theft Device Discount: For vehicles equipped with anti-theft devices.
Early Signing Discount: For signing up for a new policy before your current one expires.
EZ Pay Plan Discount: For setting up automatic payments.
Responsible Payer Discount: For not having any cancellation notices for non-payment in the past year.
Defensive Driving Course Discount: For completing an approved defensive driving course.

Geico Discounts

Geico also offers a wide range of discounts, such as:

Multi-Policy Discount: Save when bundling home and auto insurance.
Safe Driver Discount: For drivers with a clean driving record.
Good Student Discount: Available for students with good grades.
Military Discount: For active and retired military personnel.
Federal Employee Discount: For current or retired federal employees.
Anti-Theft Device Discount: For vehicles equipped with anti-theft devices.
Defensive Driving Discount: For completing a defensive driving course.
New Vehicle Discount: For insuring a new car.
Seat Belt Use Discount: For consistently using seat belts.
Emergency Deployment Discount: For military members deployed in emergency situations.

Coverage Options

Both Allstate and Geico offer comprehensive coverage options to meet various needs.

Allstate Coverage Options

Allstate’s coverage options include:

Liability Coverage: Covers bodily injury and property damage to others if you’re at fault.
Collision Coverage: Pays for damage to your vehicle from a collision.
Comprehensive Coverage: Covers damage from non-collision events such as theft, fire, or natural disasters.
Personal Injury Protection (PIP): Covers medical expenses and lost wages regardless of fault.
Uninsured/Underinsured Motorist Coverage: Protects you if you’re hit by a driver with insufficient insurance.
Medical Payments Coverage: Covers medical expenses for you and your passengers.
Rental Reimbursement: Pays for a rental car if your vehicle is in the shop due to a covered incident.
Roadside Assistance: Provides services like towing, tire changes, and lockout assistance.
Sound System Coverage: Covers loss or damage to custom audio equipment installed in your vehicle.
Accident Forgiveness: Prevents your rates from increasing after your first accident.

Geico Coverage Options

Geico offers similar coverage options, including:

Liability Coverage: Protects against claims for bodily injury and property damage if you’re at fault.
Collision Coverage: Pays for damages to your car from a collision.
Comprehensive Coverage: Covers non-collision related damages like theft or weather damage.
Personal Injury Protection (PIP): Covers medical costs and lost income regardless of fault.
Uninsured/Underinsured Motorist Coverage: Protects you if an at-fault driver lacks adequate insurance.
Medical Payments Coverage: Covers medical expenses for you and your passengers.
Rental Reimbursement: Pays for a rental car if your vehicle is being repaired due to a covered incident.
Roadside Assistance: Provides services like towing, tire changes, and lockout assistance.
Mechanical Breakdown Insurance: Covers major mechanical failures, similar to an extended warranty.
Accident Forgiveness: Prevents your rates from increasing after your first accident.

Customer Service and Claims Process

Customer service is a vital aspect of any insurance company. Efficient handling of claims can make a significant difference in your overall experience.

Allstate Customer Service

Allstate is well-known for its customer service, often highlighted by its “You’re in good hands” slogan. The company offers 24/7 customer support and has a robust network of local agents across the country. Allstate’s mobile app allows customers to manage their policies, file claims, and access roadside assistance. According to J.D. Power’s 2020 U.S. Auto Claims Satisfaction Study, Allstate scored slightly above average in overall customer satisfaction.

Allstate’s claims process is designed to be efficient and customer-friendly. Customers can file claims online, through the mobile app, or by contacting their local agent. Allstate’s QuickFoto Claim feature allows customers to upload photos of the damage, speeding up the claims process.

Geico Customer Service

Geico is highly regarded for its customer service and efficient claims handling. The company offers 24/7 customer support and has a user-friendly mobile app that allows you to manage your policy, file claims, and request roadside assistance. According to J.D. Power’s 2020 U.S. Auto Claims Satisfaction Study, Geico scored above average in overall customer satisfaction.

Geico’s claims process is known for being straightforward and efficient. The company provides multiple ways to file a claim, including online, via their mobile app, or over the phone. Geico also offers a feature called Auto Repair Xpress, which helps streamline the repair process by connecting you with authorized repair shops.

Financial Stability

The financial stability of an insurance company is crucial as it indicates the company’s ability to pay out claims.

Allstate Financial Stability

Allstate is a well-established company with strong financial ratings, reflecting its ability to handle claims and financial obligations:

A.M. Best: A+ (Superior)
Standard & Poor’s: AA (Very Strong)
Moody’s: Aa3 (High Quality)

Geico Financial Stability

Geico is a subsidiary of Berkshire Hathaway, a multinational conglomerate. This affiliation lends significant financial strength to Geico. The company consistently receives high ratings from financial rating agencies:

A.M. Best: A++ (Superior)
Standard & Poor’s: AA+ (Very Strong)
Moody’s: Aa1 (High Quality)

Pros and Cons of Allstate and Geico

Allstate Pros

Strong Customer Service: Known for excellent customer service and a broad network of local agents.
Comprehensive Coverage Options: Offers a wide range of coverage options, including unique ones like sound system coverage.
Financial Stability: Strong financial ratings ensure reliability in handling claims.
Accident Forgiveness: Helps keep premiums stable after the first accident.
User-Friendly App: Robust app for managing policies and filing claims.

Allstate Cons

Higher Premiums: Generally more expensive than some competitors, including Geico.
Mixed Reviews on Claims Handling: While generally positive, some customers report dissatisfaction with the claims process.
Fewer Discounts: Compared to Geico, Allstate offers fewer discount opportunities.

Geico Pros

Competitive Pricing: Generally offers lower premiums compared to many competitors, including Allstate.
Strong Financial Stability: Backed by Berkshire Hathaway.
Excellent Customer Service: High ratings for customer satisfaction.
Wide Range of Discounts: Extensive discount opportunities to lower premiums.
User-Friendly App: Highly rated mobile app for managing policies and claims.

Geico Cons

Limited Local Agents: Relies more on online and phone-based service, with fewer local agents.
Mixed Reviews on Claims Handling: While generally positive, some customers report dissatisfaction with the claims process.
Mechanical Breakdown Insurance Restrictions: Only available for newer cars.

Conclusion: Is Allstate Cheaper than Geico?

Based on the comprehensive analysis, it is evident that Geico generally offers lower premiums compared to Allstate. This holds true across various driver profiles and scenarios, making Geico a more affordable option for many drivers. However, cost is not the only factor to consider when choosing an insurance provider.

Making an Informed Choice

Compare Quotes: Obtain quotes from both Allstate and Geico to compare premiums for your specific situation.
Consider Discounts: Review the available discounts and see which ones you qualify for with each company.
Evaluate Coverage Needs: Ensure that the company you choose offers the coverage options you need.
Check Customer Reviews: Look at customer reviews and satisfaction ratings to gauge the level of service you can expect.
Assess Financial Stability: Consider the financial strength of each company to ensure they can handle your claims.

While Geico may offer cheaper premiums, Allstate provides robust customer service and a wide range of coverage options that might better suit your needs. By carefully considering these factors, you can make an informed decision that best fits your insurance requirements and budget.

Frequently Asked Questions (FAQs)

1. Which company has better customer service, Allstate or Geico?

Answer: Both companies offer strong customer service, but Allstate is often praised for its extensive network of local agents and personalized service. Geico, however, receives high ratings for its efficient claims process and user-friendly mobile app.

2. Can I get discounts for bundling my home and auto insurance with Allstate and Geico?

Answer: Yes, both Allstate and Geico offer multi-policy discounts when you bundle your home and auto insurance, potentially saving you money on your premiums.

3. Does Geico offer more discounts than Allstate?

Answer: Geico generally offers a wider range of discounts compared to Allstate, including military and federal employee discounts. However, the availability and amount of discounts can vary based on your individual circumstances.

4. How do Allstate and Geico handle claims?

Answer: Both Allstate and Geico have efficient claims processes with 24/7 customer support and user-friendly mobile apps for filing claims. Geico is known for its streamlined Auto Repair Xpress service, while Allstate offers the QuickFoto Claim feature for faster claims processing.

5. Are there any special discounts for military personnel with Allstate or Geico?

Answer: Geico offers a specific discount for military personnel, both active and retired, which is one of the company’s notable discounts. Allstate may offer some discounts to military personnel, but they are not as prominently featured as Geico’s military discount.

By evaluating all these factors, you can decide whether Allstate or Geico is the better choice for your car insurance needs.