GEICO vs. Allstate: Which One Offers Cheaper Car Insurance?
When it comes to car insurance, two of the most popular options are GEICO and Allstate. While both companies offer competitive rates and solid coverage, the question remains: is Allstate cheaper than GEICO?
The Verdict: GEICO Takes the Lead
According to various studies and comparisons, GEICO tends to offer cheaper car insurance rates compared to Allstate. Here’s a breakdown of their average annual premiums ¹ ² ³:
- GEICO: $1,731 for full coverage, with monthly rates starting at $43
- Allstate: $2,605 for full coverage, with monthly rates starting at $87
Factors Affecting Insurance Rates
The cost of car insurance with GEICO or Allstate depends on several factors, including:
- Driving Record: GEICO charges lower rates for drivers with clean records, while Allstate’s rates increase more gradually after accidents.
- Credit Score: GEICO offers better rates for drivers with poor credit, with an average annual premium of $2,492 compared to Allstate’s $3,958.
- Age: GEICO’s rates are significantly lower for teen drivers and seniors, with average annual premiums of $5,049 and $1,664, respectively.
Discounts and Coverage Options
Both GEICO and Allstate offer various discounts and coverage options. GEICO provides discounts for:
- Good drivers: 26% discount
- Anti-theft features: 25% discount
- Military personnel: 15% discount
Allstate, on the other hand, offers discounts for ² ⁴:
- Good students: 20% discount
- Military personnel: 25% discount
- Usage-based insurance: up to 30% discount
Customer Satisfaction and Claims Handling
While GEICO has lower rates, Allstate excels in customer satisfaction and claims handling. According to J.D. Power’s 2024 U.S. Auto Claims Satisfaction Study, Allstate scored 713 in the service category, while GEICO scored 668.
Conclusion
In conclusion, GEICO tends to offer cheaper car insurance rates compared to Allstate, especially for drivers with clean records, poor credit, or those who are seniors. However, Allstate’s discounts and coverage options may make it a better choice for some drivers. Ultimately, the best way to determine which company is cheaper for you is to compare quotes and find the best fit for your needs.
Comparison Table
| Company | Average Annual Premium | Discounts | Customer Satisfaction |
|---|---|---|---|
| GEICO | $1,731 | Good drivers, anti-theft features, military personnel | 4.1/5 |
| Allstate | $2,605 | Good students, military personnel, usage-based insurance | 4.0/5 |
By considering these factors and comparing quotes, you can make an informed decision about which insurance company is right for you.
