Safeco Car Insurance Review
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Safeco is an established insurance carrier with a history dating back to the 1920s. While the company in its younger years offered business insurance, commercial lines of credit, and mutual funds along with its property and casualty lines, today's Safeco exclusively serves the insurance needs of individuals and households. Offerings include car, boat, and RV insurance, property insurance, pet health insurance, and umbrella coverage. Safeco operates in the standard auto insurance space, meaning it caters to safer, more established drivers.
The company's lines of coverage are sold primarily through a network of independent agents. While you can get a Safeco auto quote online, the company encourages you to work through an agent for customized policy recommendations.
Safeco is based in Boston, Massachusetts and is owned by Liberty Mutual Group. You might recognize Liberty Mutual Insurance as the carrier that features an emu in its commercials.
Related Resource: Safeco Insurance profile for car insurance.
KEY TAKEAWAYS
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Safeco provides auto, boat and RV insurance, property insurance, pet health insurance and umbrella coverage. Based in Boston, Massachusetts, Safeco has a history dating back to the 1920s. It is owned by Liberty Mutual Group.
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Although the company offers ample coverage options, they do not have an extensive discount program, meaning premiums may be high for certain types of drivers.
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Safeco encourages customers to work through agents for customized policy recommendations. Safeco's financial strength is one of its most appealing characteristics, meaning customers shouldn't have to worry about the company being unable to pay claims.
Brief History
Safeco was founded in 1923 in Seattle, Washington, by an insurance executive named Hawthorne K. Dent. The company's name back then was General Insurance Company, known locally as The General. Thirty years later, The General launched a subsidiary named Selective Auto and Fire Insurance Company of America, or SAFECO for short. Safeco soon began offering life insurance and financial products. The young division was a huge success, and The General would later take on the Safeco name.
In the late 1990s, Safeco purchased American States Financial Corporation as part of its effort to expand nationwide. The acquisition made Safeco a leading carrier for small and mid-sized business insurance, but the expansion took a toll financially. To improve its financial stability, the company refocused on its founder's core values of disciplined underwriting and competitive pricing. In 2004, Safeco continued the shift back to its core competencies by divesting its life and investments division to concentrate on property and casualty insurance.
Liberty Mutual Group purchased Safeco in 2008.1
Safeco Auto Complaints: Good to Average
The National Association of Insurance Commissioners (NAIC) tracks complaints against insurance carriers, by type of coverage. The table below shows the 2017 through 2020 complaint ratings for Safeco and its affiliates that write personal auto insurance. The ratings represent the number of complaints relative to the company's share of premiums. A rating greater than 1 means the company had a higher than expected volume of complaints. A rating lower than 1 means the company had a lower than expected volume of complaints.
Company | 2020 | 2019 | 2018 | 2017 |
Safeco Insurance Company of America | 1.19 | 1.34 | 1.43 | 1.17 |
Safeco Insurance Company of Illinois | 0.54 | 1.00 | 0.73 | 0.68 |
Safeco Insurance Company of Indiana | 0.76 | 0.74 | 0.41 | 0.74 |
Safeco Insurance Company of Oregon | 0.86 | 0.51 | 0.29 | 0.22 |
Safeco National Insurance Company | 3.87 | 1.92 | 2.46 | 6.43 |
Table data source: NAIC
The national complaint index ratings for the Safeco companies are about average, with the exception of the poor ratings for Safeco National Insurance Company in 2017 and 2018. Safeco Insurance Company of Illinois is actually the largest of the Safeco companies in terms of annual premiums -- and this entity has a respectable complaint record, with index ratings ranging from .068 to 1.
On the other hand, Safeco is rated below average in J.D. Power's 2020 purchase experience survey, earning 838 points out of 1,000.2 Online customer reviews cite issues from non-Safeco drivers filing liability claims against Safeco drivers, as well as slow claims and unfriendly service, but since people are more likely to review with complaints than praise, it's worth taking with a grain of salt considering their complaint ratios.
Is Safeco Right For You?
Safeco has ample coverage options, including less-common programs like ridesharing coverage, pet protection, and diminishing deductibles. The carrier does not have an extensive discount program, however. This can keep the premiums high for certain types of drivers, including those who are young and single. The most competitive rates from Safeco will be for drivers who don't drive much and are willing to bundle.
Safeco may be right if… | Safeco may not fit if... |
You want to bundle your home and auto with the same carrier.
| You don't own your home. |
You drive conservatively and don't spend much time behind the wheel.
| You only need minimal coverage at the lowest rate possible.
|
You want to customize your coverage with specialized options such as insurance for your pet while driving.
| You have a poor driving record. |
What We Think About Safeco Insurance
If you have a good driving record, we recommend price-shopping Safeco to see how the premiums compare to your other options. Safeco Insurance provides a nice overall offering for well-qualified drivers. The company is financially stable, provides decent customer service, and the range of customization options for auto coverage is quite good. Safeco premiums can be on the high side, but you can mitigate that by bundling different lines of coverage and qualifying for the homeowner's discount, low mileage discount, and RightTrack discounts.
One of Safeco's most appealing characteristics is its financial strength -- which means you shouldn't have to worry about the company being unable to pay claims. Safeco is owned by Liberty Mutual, which a top ten largest auto insurer in the U.S.3 Liberty Mutual is also the country's fourth largest property/casualty insurer, ranks 77th on the Fortune 500 list of companies, and has an A rating from A.M. Best.4,5
Safeco distributes its auto coverage primarily through a network of independent agents. That can be a pro or a con, depending on how you like to manage your insurance and the quality of your agent. An agent gives you a single point of contact for all questions and concerns. If you have an effective agent, he or she can streamline your communications by handling policy management tasks for you. If your agent is less reliable, that complicates things. Given that Safeco's customer service is respectable, you do have the option of bypassing your agent and dealing directly with Safeco. You can also make some policy changes independently by logging into your account on Safeco's website -- which is available in both English and Spanish.
In terms of coverage options, Safeco provides a nice set of choices. You have access to the usual coverages like liability, collision, comprehensive, uninsured motorist, medical payments, etc. But you can also get coverage for your pets and property as well as an expanded roadside assistance package that reimburses you for expenses if your car breaks down away from home. You'll also be rewarded for safe driving with a diminishing deductible and access to accident forgiveness.
Most drivers will need to qualify for discounts to make Safeco's premiums competitive with other carriers. The available discounts favor homeowners and those with very safe driving habits.
Summary of Safeco auto coverage:
Safeco is a reliable carrier with good coverage options, decent customer service, and functional online tools for managing your policy independently. Premiums may be higher than other carriers if you don't qualify for multiple discounts.
How Safeco Insurance Works
As you can see in the table below, Safeco has a good number of coverage options. Note that not all coverages are available in all states.
Auto Coverage Type | How it Works |
Property Liability and Bodily Injury Liability
| Your liability coverages protect your wealth if you cause an accident. Property damage liability pays for the damage to someone else's property, while bodily injury pays for the other driver's medical expenses. Both lines of coverage are subject to caps which are defined in the policy.
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Collision | Collision pays to repair damages to your vehicle that result from a crash with another car or object. The maximum payout is the market value of your car, less your deductible.
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Comprehensive | Comprehensive is similar to collision. It pays to repair your vehicle when it's damaged by something other than a collision -- like vandalism, hail, or wind. The maximum payout is the market value of your car, less your deductible.
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Uninsured and Underinsured Motorist
| Normally, if another driver causes an accident that damages your car, that other driver's insurance should pay for the repairs. But if the driver has no insurance or not enough insurance, you'll still be protected if you carry uninsured or underinsured motorist coverage.
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Roadside Assistance | Safeco Roadside Assistance provides a limited amount of towing and breakdown services, such as tire changes, battery jumpstarts, and gas delivery.
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Rental Car Reimbursement | Rental care reimbursement coverage helps you pay for a rental car while your vehicle is being repaired after a covered loss. This program includes Safeco Claims Valet Service. Here's how that works. A valet will bring the rental car to your home or office and then drive your damaged car to the nearest authorized repair shop (assuming your car is drivable). Once repairs on your car are complete, your valet brings your car back to you.
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Emergency Assistance Package | The Emergency Assistance Package is an extension of the basic Roadside Assistance plan. It provides up to $100 for expenses and $500 for meals, lodging, and transportation if you're in an accident that's more than 25 miles from home.
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Personal Injury Protection and Medical Payments
| Your medical payments coverage pays for medical costs after an accident, no matter who is at fault.
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Loan and Lease Coverage | This is more commonly known as gap insurance. If your newer vehicle is deemed a total loss, Loan and Lease coverage helps pay for the difference between your loan balance and your car's market value.
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Electronic Key and Lock Replacement | Electronic Key and Lock Replacement provides new electronic keys if they're lost or stolen, with no deductible.
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CD and DVD Replacement | Damaged or stolen CDs, DVDs, videos, cassettes, or records are covered.
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New Car Replacement | New Car Replacement is available to you when you are the original owner of a car that's less than one year old. With this coverage, Safeco will pay you the value of a comparable new car if yours is totaled or stolen.
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AV and Custom Equipment Replacement | This coverage protects your custom aftermarket equipment, including entertainment systems, wheels, lift kits, and roll bars.
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Reimbursement for First Aid | Safeco automatically gives you up to $10,000 in coverage that reimburses you for first aid you've administered to someone else after an accident.
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Accident Forgiveness | Accident Forgiveness is available to drivers who've driven for a set number of years without tickets or accidents.
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Diminishing Deductible | Your collision deductible is automatically reduced by $100 annually if you have no claims on your policy, up to a maximum of $500.
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Personal Property Coverage | This covers your personal belongings, such as a laptop. You'll be reimbursed up to policy limits if qualified belongings are damaged in an accident or stolen from your car.
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Pet Coverage | Pet coverage helps pay your vet bills if your pet is injured in a collision. There's also a death benefit available.
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Ridesharing Coverage | Ridesharing coverage extends your personal auto policy to be in force while you are driving for Lyft or Uber.
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Table data source: Safeco6
More About Safeco
Safeco customers have access to online account management features, a bilingual website, robust mobile apps, and an Insurance Advisor Skill for Alexa.
Online tools
Safeco does have an online quoting system as well as a user-friendly online portal for managing your insurance on your own time. Spend a few minutes setting up your online account and you'll be able to pay your premiums, check your billing history, update your contact or billing information, download policy documents, view digital ID cards for proof of insurance, file and track claims, and even add or delete drivers.
The Safeco website is also available in both English and Spanish.
Safeco apps
You can also access your policy details in the Safeco iOS and Android apps. Once you've logged into the app, you can call your agent, pull up your coverages, access ID cards, make payments, file claims, upload photos of damage, track claims, search for repair shops, and review repair estimates. You can also request roadside assistance directly from the apps.
Insurance Advisor Skill for Alexa
Safeco's Alexa skill empowers your voice-controlled personal assistant to answer questions about insurance. Use it to answer general questions about car insurance or to look up local agents near you.
Safeco Insurance Discounts
The table below shows the discounts offered by Safeco on its auto coverage. Note that some discounts may only be available in certain states.
Discount | How You Get It |
Package Discount | You can save up to 15% by bundling your home and auto policies with Safeco.
|
Accident Prevention Course Discount
| Earn the discount by completing an approved accident prevention course. In most states, this discount is only available to drivers aged 55 and older.
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Good Student Discount | Teens who earn a minimum GPA, usually 3.0, qualify for the discount. The good student discount is part of Safeco's Teen Safety Rewards program.
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Driver Training Discount | Teens who complete a driver training course qualify for the discount. This is also part of Safeco's Teen Safety Rewards program.
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Mileage Discount
| Keep your mileage below a stated annual threshold and you could save as much as 20% on your Safeco premiums.
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Multicar Discount | You qualify for the discount when you list multiple cars on one policy.
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Theft Prevention Discount | Safeco rewards you with a discount when your car is equipped with an audible alarm or a device that makes the car inoperable to thieves, such as a kill-switch.
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Anti-lock Brakes Discount | In some states, cars with factory installed, four-wheel, anti-locking breaks qualify for a discount.
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Homeowners Discount | Your auto premiums are lower with Safeco if you own your home, which could be a single-family residence, townhouse, condominium, or mobile home.
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Safeco RightTrack | RightTrack is a telematics program that monitors your driving habits via a mobile app to see if you qualify for lower premiums. You have to drive with the app for 90 days to determine your discount, which could be up to $513 a year. RightTrack is only available in certain states.
|
Table data source: Safeco7
Safeco Insurance FAQs
How do I file a claim with Safeco?
After an accident, you can file a claim with Safeco via the Safeco app, the Safeco website, or by calling 800-332-3226. Note that there is a different online form to file a glass claim, which is available here.
Do I need a police report to file a claim?
You may or may not need to file a police report after an accident; it varies based on the laws in your state. Regardless of state requirements, having a police report can help expedite your claims process.
Do I file a claim if I'm not at fault?
You should file a claim, even if you don't think you're at fault. A Safeco claims representative will review the claim and provide an official determination within two business days.
Does a claim affect my premium?
A claim doesn't always increase your premiums. It depends on other factors, including how many claims you've filed, whether your credit history has changed, what discounts are applied to your policy, and any changes you make to the policy. Your premiums will not increase until your next policy renewal. Safeco will notify you at least 30 day prior to your current term expiration with your rate for the next term.
Safeco Resources
Teen driving stats
If you have a teen driver at home, you'll want to review these 10 surprising teen driving stats.
Telematics overview
Curious about telematics? Watch this Safeco video that explains how telematics can help you save on your auto premiums.
Safe winter driving
Brush up on your winter driving skills with this video and blog post from Safeco.
- Our history: Safeco Insurance. (n.d.). Retrieved November 13, 2020, from https://www.safeco.com/about/history
- 2020 U.S. Insurance Shopping Study. (2020, April 30). Retrieved November 13, 2020, from https://www.jdpower.com/business/press-releases/2020-us-insurance-shopping-study
- Resendiz, J. (2020, November 10). The 10 largest auto insurance companies (November 2020). Retrieved November 13, 2020, from https://www.valuepenguin.com/largest-auto-insurance-companies
- Facts + Statistics: Insurance company rankings. (n.d.). Retrieved November 13, 2020, from https://www.iii.org/fact-statistic/facts-statistics-insurance-company-rankings
- Liberty Mutual Insurance Group: 2020 Fortune 500. (2020, August 10). Retrieved November 13, 2020, from https://fortune.com/company/liberty-mutual-insurance-group/fortune500/
- Auto coverage - Options & features: Safeco Insurance. (n.d.). Retrieved November 12, 2020, from https://www.safeco.com/products/auto-insurance/coverage
- Auto insurance discounts - Save today: Safeco Insurance. (n.d.). Retrieved November 12, 2020, from https://www.safeco.com/products/auto-insurance/discounts
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