Safeco Auto Insurance: Why Is It So Expensive?

Safeco auto insurance is a subsidiary of Liberty Mutual, one of the 10 largest insurance companies in America. Safeco offers a wide range of coverage options, including some unique features such as accident forgiveness, emergency assistance, and pet injury coverage. However, the company has received mixed reviews when it comes to customer service and satisfaction. While some customers report positive experiences, others have complained about issues with claims handling, delays, and unsatisfactory settlement offers. Safeco's auto insurance premiums may also be impacted by inflation, resulting in higher costs for policyholders.

Customer service

Safeco's customer service has received mixed reviews. While some customers have expressed satisfaction with the company's service, others have reported negative experiences.

On the one hand, Safeco is backed by Liberty Mutual, the third-largest property and casualty insurer in the US. The company offers a wide range of auto insurance policy options and customizable plans to suit different needs. Safeco also provides several unique policy add-ons, such as new vehicle replacement, rental reimbursement, and classic car insurance. Additionally, Safeco boasts affordable rates, particularly for younger drivers, and offers various discounts and services.

However, Safeco has received average to below-average customer service reviews. J.D. Power's 2022 Auto Claims Satisfaction Study rated Safeco's customer satisfaction with claims slightly lower than average, ranking the company 16th out of 22 insurers. The National Association of Insurance Commissioners (NAIC) gave Safeco a complaint index rating of 0.94, slightly below the national average of 1.00, suggesting that Safeco customers are as likely to be satisfied with the company as they are with an average insurer.

One common complaint among customers is the difficulty in obtaining quotes online. Safeco does not provide quotes online, and customers must work directly with an agent to obtain coverage. This can be inconvenient and time-consuming for individuals who prefer a more streamlined and digital approach to obtaining insurance.

Some customers have also reported issues with roadside assistance, claim delays, unsatisfactory claim settlement offers, adjusters' handling of claims, claim denials, and unexpected rate increases. There have also been concerns about the company's handling of accident-related expenses, with some customers feeling that Safeco does not pay out enough to cover all necessary costs.

Overall, while Safeco offers attractive rates and coverage options, the mixed customer service reviews highlight the importance of thorough research before choosing an insurance provider.

Safeco's unique features

Accident Forgiveness

The first accident on your policy is waived after a set number of years with Safeco without an at-fault collision or violation.

Claims-Free Cash Back

If you were claims-free over a six-month review period, Safeco will send you a check for 2.5% of your policy premium (up to 5% each year).

Diminishing Deductible

The collision deductible will decrease at every renewal if there are no claims filed against your policy. The deductible will continue to decrease for up to five years or until the $500 maximum is reached.

RightTrack

RightTrack is a free telematics program that tracks your driving using a mobile app. After a 90-day review period, your safe driving behaviours could earn you a discount of up to 30% for the life of your policy. A discount is guaranteed just for signing up and participating.

Classic Car Insurance

Safeco offers coverage for classic cars and offers low-mileage discounts to drivers who drive less than 5,000 miles a year in their classic car.

Loan and Lease Coverage

Safeco offers auto loan/lease coverage, also known as gap insurance. This covers the difference between what you owe on a car loan or lease and the value of your stolen or totalled vehicle.

Claims Valet Service

Safeco will deliver a rental vehicle, drive your car to an authorized repair shop and return your repaired car. The valet service can deliver a rental vehicle to different locations, not limited to your home or office.

Emergency Assistance Package

This pays for roadside assistance, plus emergency expenses for meals and lodging. It also includes personal property coverage for items damaged or stolen from your car.

Safeco's financial strength

Safeco Insurance has been protecting families and individuals since 1923. In 2008, it became part of Liberty Mutual Insurance, which is ranked on the Fortune 100 list of the largest U.S. corporations. This backing has given Safeco the financial strength to be there for its customers when they need it most.

The company has financial strength ratings of A (Excellent) from the A.M. Best Company, A2 (Good) from Moody's Investors Service, and A- (Strong) from Standard & Poor's. These strong ratings reflect Safeco's ability to meet its financial obligations and provide peace of mind to its policyholders.

In addition to its strong financial backing, Safeco has a long history of providing competitive pricing and superb service. Over the years, the company has expanded its offerings to include a comprehensive range of insurance coverage for cars, homes, motorcycles, boats, and more. With a focus on both financial strength and customer service, Safeco has established itself as a trusted and reliable insurance provider.

Safeco's discounts

Safeco Insurance has been in the insurance business since 1923 and offers a range of discounts to its customers. The company provides discounts on auto insurance when customers take steps to improve their driving and safeguard their property. Here is a list of some of the discounts Safeco offers:

• Multi-Policy Discount: Customers can save up to 15% when they bundle their auto insurance with another policy, such as home or renters insurance.
• Accident-Free Discount: Customers with a clean driving record for a certain period, typically three to five years, without any at-fault accidents, can save up to 10% on their premiums.
• Multi-Car Discount: Customers insuring more than one vehicle with Safeco can save up to 8%.
• Safety Features Discount: Vehicles equipped with anti-lock brakes, anti-theft devices, daytime running lights, and forward collision warning systems may be eligible for a discount.
• Low Mileage Discount: Customers whose vehicles are driven 4,000 miles or less per year may qualify for a discount.
• Safe Driver Discount: Customers who complete an approved accident prevention course and maintain a clean driving record may be eligible for a discount.
• Good Student Discount: Students with good grades (a GPA of 3.0 or higher) may be eligible for a discount.
• Early Quote Discount: Customers who request a quote before their current policy expires or in advance of when they need coverage may be offered a discount.
• RightTrack Discount: Customers can save up to $513 per year by using the RightTrack app, which monitors driving behaviours.
• Diminishing Deductible Discount: For every year without claims against the policy, the collision deductible decreases by $100, up to a maximum of $500 or five years.

Safeco's parent company

Safeco Insurance is a trade name used by a division of Liberty Mutual Group, which is a subsidiary of Liberty Mutual Holding Company Inc. Liberty Mutual Insurance is the parent company of Safeco.

Liberty Mutual Insurance is ranked on the Fortune 100 list of the largest U.S. corporations. The company has financial strength ratings of A (Excellent) from the A.M. Best Company, A2 (Good) from Moody's Investors Service, and A- (Strong) from Standard & Poor's.

Safeco was founded in 1923 in Seattle as the General Insurance Co. of America. In 1953, the company created a subsidiary called Selective Auto and Fire Insurance Company of America, or SAFECO, and eventually adopted the name. In 2008, Safeco was acquired by Liberty Mutual Insurance.

Frequently asked questions