Is Safeco Insurance Really Cheap? Understanding Safeco’s Affordable Premiums

Safeco insurance is known for having affordable car insurance rates, especially for drivers with good driving records. But how cheap is Safeco exactly? And what makes Safeco cheaper than some other insurers?

In this article, we’ll take a close look at Safeco’s pricing and explain what makes it a budget-friendly choice for many drivers.

How Safeco Stacks Up Against Competitors

To start let’s look at how Safeco’s average premiums compare to other top insurers nationally

• Safeco: $1,248 per year
• State Farm: $1,518 per year
• Allstate: $1,483 per year
• Progressive: $1,381 per year
• GEICO: $1,173 per year

As you can see, Safeco ranks below the industry average of $1674 per year. It’s especially affordable compared to State Farm and Allstate.

Safeco also beats the competition in most driver categories:

• For young drivers, Safeco averages $3,016 per year versus $3,255 at State Farm.
• For drivers with a recent accident, Safeco averages $1,761 per year versus $2,043 at Progressive.
• Even for high-risk drivers, Safeco tends to offer cheaper rates than many competitors.

So all things considered, Safeco delivers very affordable premiums compared to other big national insurers. While not always the absolute cheapest, Safeco provides competitive pricing.

Why is Safeco Cheaper Than Many Competitors?

What allows Safeco to offer budget-friendly premiums compared to other major insurers? Here are some of the key factors:

Discount Opportunities

Safeco offers a range of discounts that can lower your rate, including:

• Multi-policy discount for bundling home and auto insurance
• Multi-car discount for insuring more than one vehicle
• Safe driver discount for a clean driving record
• Student discount for young drivers away at school
• Military discount for active service members

Taking advantage of discounts is a great way to maximize savings with Safeco.

Competitive Base Rates

Beyond its discounts, Safeco sets attractive base rates that give them an edge over companies like Allstate or State Farm. So you’re starting from a lower premium before even adding discounts.

Focus on Low-Risk Drivers

Safeco targets lower-risk drivers who have clean driving histories. This allows them to price more competitively since they have fewer high-risk policyholders.

Efficient Operations

As part of Liberty Mutual, Safeco benefits from scale and integrated operations that produce cost savings. These savings get passed onto consumers through lower premiums.

How to Get the Cheapest Rate with Safeco

While Safeco offers affordable premiums for many drivers, you can take steps to maximize your savings and get an even cheaper rate:

• Maintain a clean driving record – Avoid accidents, traffic violations, and DUIs to qualify for the lowest rates.

• Choose higher deductibles – Opting for a $500, $1,000 or $2,500 deductible reduces your premium significantly.

• Drop unnecessary coverage – Removing collision and comprehensive coverage on an old car can lower your rate.

• Ask about all available discounts – Be sure you’re getting every discount possible, like multi-policy, multi-car, and more.

• Compare quotes frequently – Shop rates regularly, as new discounts may become available over time.

• Improve your credit – A higher credit-based insurance score can help lower your premium.

• Buy home insurance too – The multi-policy discount provides up to 15% off for bundling home and auto insurance.

Following these tips can help you maximize savings and find the cheapest possible rate with Safeco.

How Much Can You Save with Safeco?

Exactly how much you save with Safeco depends on your risk profile as a driver and other factors like your location. But here are some examples of potential savings:

• For a 40-year old driver with a clean record, Safeco averages $832 per year, 32% less than the $1,223 national average.

• For a teen driver, Safeco averages $3,016 per year, 7% less than the $3,255 average at State Farm.

• Drivers who bundle home and auto insurance save up to 15% through Safeco’s multi-policy discount.

• Choosing a $1,000 deductible reduces the collision portion of your premium by around 40% compared to a $500 deductible.

So in total, many drivers can save hundreds per year by choosing Safeco over high-priced competitors while also maximizing discounts.

Minimum Coverage Car Insurance at Safeco

Drivers looking for the absolute cheapest rates often choose minimum liability coverage. At Safeco, minimum coverage carries average premiums of:

• $516 per year for a married 40-year old
• $2,796 per year for a single 17-year old
• $1,385 per year for a single 60-year old

These rates for bare minimum coverage are very affordable at Safeco compared to other major insurers. Minimum liability limits often start around $150 per month or less.

Just keep in mind that minimum coverage has serious drawbacks, including:

• No coverage for your own injuries or vehicle repairs
• Low liability limits of just $25,000 per person
• No uninsured motorist coverage

So we recommend considering slightly higher limits if possible, while still keeping your premium affordable.

Is Safeco a Good Choice for Cheap Car Insurance?

For drivers who prioritize low rates, Safeco stands out as a great choice for affordable car insurance. Key advantages include:

• Competitive base rates that beat many top insurers
• Array of discounts to lower your premium
• Focus on lower-risk drivers allows cheaper pricing
• Bundling discounts when you add home insurance
• Ability to reduce premiums further with higher deductibles

Safeco manages to balance affordable premiums with quality coverage and strong financial standing. For budget-minded shoppers, it’s hard to beat Safeco for value and cheap car insurance rates.

Just remember to compare quotes from multiple insurers and shop around regularly to confirm you’re getting the best possible rate. But overall, Safeco remains one of the most competitively priced options year after year.

Is Safeco Cheap for High-Risk Drivers Too?

While Safeco offers very affordable rates for good drivers, their pricing remains competitive for higher-risk drivers as well.

For example, Safeco averages $1,761 per year for drivers who have caused an accident. That’s among the lowest rates for drivers with a recent at-fault accident and beats the $2,043 average among top insurers.

Other cheap Safeco rates for high-risk drivers include:

• $2,408 per year for drivers with a DUI
• $1,593 per year for drivers with poor credit
• $2,655 per year for teen drivers with bad grades

So while high-risk Safeco customers pay more than good drivers, Safeco still offers affordable pricing relative to other major insurance companies. Their discount opportunities and efficiency help keep rates low across the board.

The one exception is that extremely high-risk drivers may find even cheaper options at specialty insurers or those catering specifically to non-standard markets. But Safeco remains competitive for most driver risk profiles.

How Safeco Rewards Good Driving

Safeco offers a few options that reward safe driving and allow your premium to decrease over time:

Safeco RightTrack

With RightTrack, you can save up to 10% by allowing Safeco to monitor your driving habits through an app or onboard device. Safeco offers additional discounts for improving your driving score over time.

Accident Forgiveness

Safeco won’t raise your rates after your first at-fault accident, provided you’ve gone at least 5 years between accidents. This keeps your premium from spiking after one mistake.

Safeco Rewind

This brings back your old accident-free rates if you go 3 full years with no accidents, violations or claims after an incident. Lets you undo rate increases over time.

Diminishing Violations

Minor violations like speeding tickets only affect your Safeco premium for 3 years before being removed. So you aren’t penalized forever for one mistake.

Why Safeco is Cheap: The Bottom Line

While not the absolute cheapest in every scenario, Safeco offers very affordable premiums by leveraging discounts, efficient operations, lower-risk drivers, and reward programs. Drivers can expect highly competitive rates from Safeco, especially with a clean record.

Safeco manages to balance significant savings for consumers with quality coverage from a financially sound insurer with strong industry ratings. Overall, their commitment to value makes Safeco a top choice for cheap car insurance without sacrificing protection.