Discounted auto insurance without a lot of fanfare
Safeco doesn’t spend a lot of money on advertising and, as a result, passes those savings on to customers. Safeco isn’t as much of a household name as other companies, but don’t worry; Safeco is a Liberty Mutual insurance company, which means the sixth-largest insurer backs Safeco’s policies in the U.S. Read on to learn more about Safeco’s pricing, discounts, and key features.
In our research, Safeco did very well when ranked among other insurance companies based on rates. Its average policy premium is $1,373 per year, which is just $222 more than USAA, the lowest-priced company on our list, although that company writes policies only for those who have served in the military and their families.
While you can expect competitive rates, understand that your rate will be dependent on a multitude of factors, including your location, age, car make and model, and driving history. Additionally, coverage options affect rates. Choosing full coverage over state minimum liability coverage will cost more. Insurance coverages such as rental car reimbursement will cause prices to increase even more.
Take a look at the discounts you might be eligible for with Safeco:
If you’ve been with Safeco for a set number of years, you will be eligible for Safeco to waive the first accident. Having the accident waived means that you won’t see your rates rise for that one isolated incident. This benefit helps you save money in the long run.
During every policy term, you have the opportunity to earn a rebate on your policy premium. You could earn 2.5 percent of your policy premium back if you were claims-free over the six-month review period. The rebate adds up to 5 percent per year, since there are two policy terms, each of which is six months. You don’t need to do anything to get this rebate; Safeco will send it automatically at the end of the policy term when reviewing the policy for renewal.
A diminishing deductible applies to the collision deductible of the policy. The deductible decreases each year if you don’t file a claim for collision. You can reduce your deductible by a total of $500 by maintaining a claims-free record for five years.
This coverage option is vital if you have a new car with fewer than 15,000 miles. If you total the car or someone steals it, Safeco will pay you to replace the car with a comparable new car.
Safeco serves all 50 states through its underwriting companies, all of which are part of the Liberty Mutual Group. Each company is a separate and legal entity. Here is a list of these companies and the states each serves:
You can cancel your insurance policy at any time. Simply call your local agent or use the customer support line at 800-332-3226. When you cancel, Safeco will return any unearned premium to you within a couple of weeks.
Unearned premium is the portion of the premium that you paid for the policy that becomes unused when you cancel the policy. You have a right to have Safeco return all unearned premiums to you.
Hawthorne K. Dent founded Safeco in 1926 with the original name the General Insurance Company of America. The company referred to itself as “The General” for convenience and became a West Coast example of competitive prices with excellent service. This isn’t to be confused with The General auto insurance carrier known today.
In 1953, The General created a subsidiary called Selective Auto and Fire Insurance Company of America, or SAFECO. This subsidiary used computer automation tools to help it succeed among fast-growing national carriers. Management renamed it Safeco Corp. in 1960.
The company continued to grow over the decades, selling off its life and investments division in 2004 so that it could focus on property and casualty insurance. It became a part of the Liberty Mutual family in 2008, giving it the financial resources to grow and handle claims.
Safeco has an A (Excellent) financial strength rating from AM Best1 and an A1 rating from Moody’s.2 These ratings reflect a company that has the financial resources to handle catastrophic claims, suggesting a high level of financial solvency.
You can contact Safeco directly at (800) 332-3226. You may also reach out to your independent agent for help and support.
Independent agents sell Safeco insurance in local communities. While building a relationship with an agent is helpful, you may get faster service by contacting customer service directly.
Safeco auto insurance is a competitively priced carrier that focuses on customer service to help you save money through discounts. The company is not as well known as its parent company, Liberty Mutual, but that shouldn’t deter you from taking advantage of the savings.
Safeco Insurance is a good company that gets high ratings from financial rating companies, meaning it is financially strong. It gets an A from AM Best and an A1 from Moody’s.
Safeco Insurance can reduce costs because it doesn’t spend millions on advertising like other insurance companies do. Marketing savings, along with underwriting technology, allow Safeco to price policies very competitively.
Safeco Insurance Company of America. AM BEST. (2022, Jul 27).
Rating Action: MOODY’S LOWERS SAFECO CORP. DEBT RATINGS (SENIOR TO Baa1 FROM A3); CONFIRMS INSURANCE RATINGS AT A1. Moody’s Investors Service. (2001, May 8).