Is Geico cheaper than All State?

Allstate’s advertising campaign states that individuals can save $396 to $581 per year (based on location) on car insurance by switching to GEICO, but is this really true? We will determine which rates are cheaper: GEICO or All State. In addition, we will discuss the difference between the products and services of GEICO vs. Allstate, as well.

How does Allstate make the above claim? The answer: the Allstate website (and every Allstate agent) asks each individual inquiring about a rate quote, who their prior carrier was and the amount of the previous rate, as well.

While this claim may be based on the responses from actual GEICO customers, the rate that someone pays for car insurance is based on a number of different factors. Therefore, the price can vary according to a person’s driving record, age, credit rating, type of vehicle and the year and various other factors. Therefore, it’s impossible to determine which company will ultimately be cheaper.

Rates can change quickly in today’s insurance market; therefore, it’s difficult to determine an exact premium amount (e.g. $581.00). The price difference could be as much as, $100 to $200 different from the rate stated by the commercial. In order to find the best rates, it’s a good idea to shop around by comparing insurance rates from both companies.

Both companies offer excellent products and services:

*GEICO and Allstate both offer online policy access – which means, instant online quotes, 24/7 customer service, online information and more to customers and non-customers.

*GEICO’s website is easy to use with helpful tools to guide individuals through purchasing an insurance policy. The website also pulls information from the DMV and other businesses’ databases to eliminate the need of inputing information about their vehicle and driving history, which results in faster, more accurate quotes. The website allows consumers to view an itemized list of insurance features to customize their selection according to the type of desired coverage and each person’s budget.

*GEICO offers numerous discounts including military and federal employee discounts, driver’s education discount, good student discount, multi-policy discounts and more.

*Allstate offers multiple discounts such as, their Defensive Driver, Premier and Premier Plus Driver discounts, safety features discount (anti-theft devices, air bags, anti-lock brakes and more), retired and over 55 discount, multi-policy discount and more.

*Allstate’s Accident Forgiveness, New Car Replacement, Deductible Rewards and Safe Driving Bonus are all available to safe drivers.

*Allstate also offers different levels of policies such as, Value, Standard, Gold and Platinum packages.

In order to take full advantage of these special products, programs and discounts, it’s a good idea to discuss the information with your insurance agent.

Truthfully, the cost of insurance is based on a number of different factors that every insurance company uses to calculate insurance premiums. Overall, Allstate’s rates tend to be less expensive for those who are either over 35 or families insuring multiple cars. However, GEICO is a great option (and sometimes cheaper than Allstate) for those under 25 and singles tend to get better rates with GEICO, as well.

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