All insurance companies are not exactly the same, and it pays to compare customer service, rates, and claims handling before you decide which insurer to use.
Geico and Allstate are two major players in the very competitive car insurance business, so you are bound to come across them if you are shopping for a new policy. See which of these companies is best for you.
A Simple Comparison of GEICO vs Allstate
- Geico is the 2nd largest US insurance company
- Allstate is the 3rd largest US insurance company
- Allstate has a 10% share of the market while Geico has a 10.8% share of the insurance market.
You can see that even the 2nd and 3rd largest insurers only hold an 20.8% share of the US market.
This means that this business is very competitive. You can find lots of large and small companies that are eager to compete for your business.
A Short History of Geico and Allstate
Both companies are old and established, and you might take comfort in the fact that they have stayed in business for several decades. Geico has grown a lot in the last several years and did not become a market leader until more recently.
Geico was founded in 1936, and the name actually stands for Government Employee Insurance Company. The company began selling policies to all consumers in the 1974 but did not begin aggressively advertising until it began to embrace the internet in 1996.
Allstate was founded in 1931, and it established a vast agency network. Even though you can do business with this company online, local agents have been the traditional focus of this company’s marketing efforts.
Comparing Allstate vs GEICO Insurance Prices
It is not possible to say which company is cheaper. Too many factors go into each vehicle owner’s rates to make an accurate prediction.
Allstate does not typically advertise itself as a cheaper insurance company but focuses on their coverage and service.
GEICO tends to court consumers who are looking for lower rates, and they have leveraged their direct marketing efforts towards becoming more efficient and reducing rates.
Geico’s tactics may include urging customers to cut coverage in order to save money while local Allstate agents might be more likely to urge their own clients to include more coverage for a higher premium rate.
You should not base your purchase decision totally on rates anyway.
Do Customers Like Geico or Allstate More?
J.D. Powers is a large market research firm that conducts market research studies. They ranked a variety of car insurance companies based on overall customer satisfaction in 2012. Geico ranked 11th while Allstate ranked 20th.
Of course, customer satisfaction can vary by the service you get in your own hometown or individual coverage needs.