Geico vs Liberty Mutual - Yahoo Finance
Geico was founded in 1936 and is based in Chevy Chase, Maryland. The company is known for its gecko mascot and low average car insurance costs, and it sells car insurance in all 50 states and Washington, D.C., making it a widely available option for drivers across the nation. It is currently the second-largest car insurance company by market share, with 17 million policies underwritten and more than 28 million vehicles insured as of 2019.
Liberty Mutual was founded in 1926 and is headquartered in Boston, Massachusetts. The company is another national car insurance provider, and like Geico, it also has a well-known mascot, the LiMu emu. In addition to auto insurance, Liberty Mutual offers a variety of insurance products, including property, business, and life insurance.
Geico | Liberty Mutual | |
|---|---|---|
Bankrate score | 4.4 | 4.1 |
Tier 1 | 4.5 | 3.5 |
Tier 2 | 4.0 | 5.0 |
Tier 3 | 4.7 | 4.3 |
Bankrate Score methodology
Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders' experiences with an insurance company. These rating factors include a robust assessment of each company's product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company's total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
Tier 2 (Coverage & savings): We assessed companies' coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company's discount options listed on its website.
Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody's and factored a company's corporate sustainability efforts.
Tier scores are unweighted to show the company's true score in each category out of a possible five points.
[sc code="alpine_collapse"]
Our verdict
Geico and Liberty Mutual are both strong insurance companies, but each company has its potential advantages and disadvantages. For example, Liberty Mutual offers more optional coverages, but Geico has higher third-party ratings and a higher Bankrate Score. Because average rates aren't available for Liberty Mutual, it's difficult to determine which carrier has cheaper average premiums, but comparing Geico's average rates against the national cost of car insurance may be helpful to determine whether it's right for you.
Geico vs. Liberty Mutual comparison
Geico and Liberty Mutual are two of the biggest car insurance providers in the U.S., and each company has pros and cons that may be worth considering when narrowing down the options, especially when it comes to third-party ratings, coverage options, and discounts.
Geico pros and cons
Pros | Cons |
|---|---|
Range of discount opportunities | Limited endorsement options |
Rated above average on claims satisfaction by J.D. Power | Home and life available but underwritten by third parties |
Online and mobile app access | Does not offer gap insurance |
Liberty Mutual pros and cons
Pros | Cons |
|---|---|
Variety of discount opportunities | Rated below average for claims satisfaction by J.D. Power |
Online tools and resources available | Lower financial strength rating compared to Geico |
Numerous endorsements |
Is Geico cheaper than Liberty Mutual?
Average car insurance premiums are not available for Liberty Mutual, so it's difficult to determine if Geico has cheaper car insurance. However, Geico's average rates, which were calculated by Bankrate's insurance team with premium data from Quadrant Information Services, are much lower than the national average cost of car insurance nationwide.
Car insurance company | Average annual premium for full coverage | Average annual premium for minimum coverage |
|---|---|---|
Geico | $1,353 | $373 |
Liberty Mutual | N/A | N/A |
National Average | $2,014 | $622 |
Car insurance rates methodology
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
$100,000 bodily injury liability per person
$300,000 bodily injury liability per accident
$50,000 property damage liability per accident
$100,000 uninsured motorist bodily injury per person
$300,000 uninsured motorist bodily injury per accident
$500 collision deductible
$500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state's requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
[sc code="alpine_collapse"]
Geico is generally cheaper for drivers with poor credit
Depending on your car insurance provider and where you live, your credit score can be used as an insurance rating factor. The only states that don't allow the use of credit-based insurance scores are California, Hawaii, Maryland, Michigan, and Massachusetts. In the table below, you can see how Geico's average rates compare to the national average rates for various credit scores.
Credit Score | Geico | National Average |
|---|---|---|
Poor | $1,865 | $3,479 |
Average | $1,437 | $2,176 |
Good | $1,353 | $2,014 |
Excellent | $1,258 | $1,764 |
Rates by credit score methodology
Rates were calculated based on the following insurance credit tiers assigned to our drivers: "poor, average, good (base) and excellent." Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. Four states prohibit the use of credit-based insurance scores as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.
[sc code="alpine_collapse"]
Geico is generally cheaper for young drivers
Young drivers who are newly licensed typically pay the highest car insurance rates due to younger drivers having a statistically higher likelihood of accidents and other incidents behind the wheel. However, average rates vary across insurance companies, even for younger drivers. According to our analysis, Geico's average rates for young drivers are cheaper than the national average. The following table compares Geico's average rates and the national average rates for young drivers on a parent's policy.
Geico | National Average | |
|---|---|---|
Age 16 | $2,977 | $4,392 |
Age 17 | $2,753 | $4,102 |
Age 18 | $2,523 | $3,837 |
Age 19 | $2,212 | $3,345 |
Age 20 | $2,054 | $3,149 |
[sc code="alpine_collapse"]
Geico is generally cheaper for adult drivers
Car insurance rates tend to start declining as drivers get older and gain experience behind the wheel. After comparing Geico's average rates to the national average, we found that Geico's average car insurance premiums are cheaper for adult drivers.
Geico | National Average | |
|---|---|---|
Age 18 | $4,048 | $6,110 |
Age 25 | $1,584 | $2,473 |
Age 30 | $1,389 | $2,125 |
Age 40 | $1,353 | $2,014 |
Age 60 | $1,264 | $1,824 |
Rates by age (adult drivers) methodology
Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
[sc code="alpine_collapse"]
Geico is generally cheaper for high-risk drivers
Drivers with a history of accidents, speeding tickets, or DUI convictions generally pay higher car insurance rates than drivers with clean records. While some companies will underwrite policies for drivers with a DUI conviction, some insurers will not insure drivers who have gotten a DUI.
While we have average rate information for drivers with a DUI, it does not guarantee that Geico, Liberty Mutual, or another carrier will offer coverage to a driver with a DUI conviction. When compared to the national average, Geico's average premiums are cheaper for high-risk drivers.
Rates by driving record methodology
Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.
[sc code="alpine_collapse"]
Geico vs. Liberty Mutual: discounts
Geico and Liberty Mutual both offer unique opportunities for car insurance discounts, which could help you get a lower rate if you qualify.
Geico unique discounts
Military discount: Active duty military service members may qualify for savings of up to 15 percent on their policy with Geico. There's also a discount opportunity of up to 25 percent available for drivers who go on emergency deployment.
Federal employee discount: Federal employees may qualify for a discount of up to 12 percent on their Geico car insurance policy.
Good student discount: Students who get good grades in school or maintain a minimum GPA may qualify for a discount of up to 15 percent with Geico.
Liberty Mutual unique discounts
Early shopper discount: If you get a car insurance quote from Liberty Mutual before your current policy expires, you may qualify for a discount.
Homeowner discount: Liberty Mutual offers a discount to drivers who own a home.
Online purchase discount: When you purchase your car insurance policy online, Liberty Mutual typically provides an automatic discount at checkout.
Usage-based insurance comparison: Geico vs Liberty Mutual
Geico and Liberty Mutual both offer usage-based insurance programs, also called telematics insurance. When you enroll in a telematics insurance program, your driving habits and mileage are tracked. If you practice safe driving behaviors and/or drive infrequently, you may qualify for a discount or lower rate on your policy.
Liberty Mutual RightTrack | Geico DriveEasy | |
|---|---|---|
Device type | Mobile app | Mobile app |
How does it impact your rate? | Can increase or decrease | Can increase or decrease |
Availability | AL, AR, AZ, CO, CT, DE, FL, GA, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, NE, NH, NJ, NM, NV, OH, OK, OR, PA, RI, SC, TN, TX, UT, VA, VT, WI, WV, and Washington D.C. | AL, AZ, AR, CO, CT, FL, GA, ID, IL, IN, IA, LA, KY, MD, MI, MN, MO, NC, NE, NV, NJ, NM, OH, OK, OR, PA, SC, TN, TX, UT, VA, WA, WI, and Washington D.C. |
Discount potential | Up to 30 percent | N/A |
Driving behaviors that are monitored | Braking force, acceleration, and nighttime driving | Distracted driving, hard braking, cornering, smoothness, road type, distance driven, time of day, and weather |
Geico vs. Liberty Mutual: customer experience comparison
Comparing third-party ratings and other tools, like mobile apps, can also offer insight into car insurance companies. On the J.D. Power 2022 U.S. Auto Claims Satisfaction Study, Geico rated above average for claims satisfaction and Liberty Mutual rated lower, but it's worth noting that there is only a four-point difference in the company's scores. Like many car insurance companies, Geico and Liberty Mutual also offer mobile apps. Both apps are highly rated and offer a variety of features.
Geico | Liberty Mutual | |
|---|---|---|
Apple store | 4.8 out of 5 | 4.8 out of 5 |
Google Play | 4.6 out of 5 | 4.7 out of 5 |
J.D. Power | 874 / 1,000 | 870 / 1,000 |
Frequently asked questions
Do Geico and Liberty Mutual offer homeowners insurance?
Yes, both Geico and Liberty Mutual offer homeowners insurance policies, but Geico uses third-party companies to underwrite these types of policies. However, you still have the opportunity to qualify for a bundling discount with Geico if you bundle your homeowners and car insurance policies, just as you may qualify for a bundling discount with Liberty Mutual for purchasing multiple policies with them.
[sc code="alpine_collapse"]
Is Geico cheaper than Liberty Mutual?
Average rate data is not available for Liberty Mutual, so it's hard to determine whether Geico or Liberty Mutual is the cheaper option on average. However, we found by analyzing average rate data from Quadrant Information Services that Geico's average insurance rates are consistently lower than the national average for various categories, like young drivers and drivers with bad credit.
[sc code="alpine_collapse"]
What's the best car insurance company?
The best car insurance company is different for every driver. The best option for your needs typically depends on rating factors and other unique factors, like your location, budget, and coverage needs. To find the best options for you, it may be helpful to compare the options to find which align with your needs and then obtain personalized quotes to learn which one is the most affordable for the right type of coverage.
[sc code="alpine_collapse"]
Comments
Post a Comment