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I’ve been with Farmers for a few years, but my last renewal quote jumped significantly. I decided to shop around and got a quote from Geico that’s drastically lower. For what seems like the same coverage, Farmers wants $875 for a 6-month term, while Geico quoted me only $479 for the same period. That’s a difference of almost $400 every six months! I also got a Progressive quote for $679. While I like having a local Farmers agent, the savings with Geico are tempting. For those who have experience with either company, especially considering this big price gap, what are the potential downsides of switching to Geico that I should be aware of?
As someone who switched from Farmers to Geico, I saved a lot of money initially. For me, the lower rate was the biggest factor. Like you, I was with Farmers and saw my rates go up. When I compared, Geico was significantly cheaper, and I figured the savings were worth it, especially since Geico’s business model of having no agents typically leads to lower premiums. It’s been a few years, and while I don’t have a local agent anymore, I haven’t had any major issues so far, and the money I’ve saved adds up.
I’ve been with Geico for about 7 years and filed 4 claims. Two were comprehensive (hail and deer), and two were collision (one at fault, one not). While there were a few “hiccups along the way,” all four were handled well enough for me. Since I used to work in auto claims for a major carrier, I felt comfortable handling things myself, and for me, the lower cost with Geico has been worth it.
From my understanding, Farmers operates on an agent model, meaning a portion of your premium goes towards paying your local agent. This can be beneficial if you value having a dedicated person to talk to and potentially help with claims. However, as you’ve noticed, this typically results in paying “a bit more” compared to companies like Geico that don’t have this agent network. You need to decide if having that personal agent is worth the extra cost you’re seeing.
I work in the insurance industry, and based on what I know, Geico has a “pretty solid” reputation. Companies often talk negatively about competitors because it’s a business where they try to take customers from each other. Geico has a “sound business model and handle claims very well”.
I wouldn’t be hesitant to switch to Geico based solely on some perceived bad reputation, especially with such a large price difference.
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