Safeco is an insurance company owned by Liberty Mutual. It operates through independent agents located across all 50 states. The company offers a variety of insurance types and coverage options including home, auto, umbrella and identity recovery policies. In addition, Safeco offers its customers several benefits and savings when they purchase more than one policy.
Unfortunately, Safeco homeowners insurance doesn’t have the best record of customer service. The company has more complaints and lower overall customer ratings than other homeowners insurance companies. However, Safeco may still be a good choice for those who want homeowners insurance and may also require additional coverage, such as identity recovery, pet health insurance, or car insurance.
Safeco Overview
Safeco has been providing insurance for over 100 years. Despite its long history, the company is not as well known as other insurance providers. Our evaluation concluded that this could have to do with Safeco having a below-average customer satisfaction rating.
The company also falls below industry standards on average customer complaints and half again as many complaints as other home insurance companies, according to the National Association of Insurance Commissioners’ (NAIC) Complaint Index. Here is a list of pros and cons for Safeco to help you determine if this company provides what you need.
PROS
- Packaged deals available: You can save for combining home and auto policies and could save even more if you add coverage for your boat, RV or motorcycle.
- Various discounts: Safeco offers discounts for installing a home security system and being a new homeowner, among others.
- Mobile app and Insurance Advisor skill with Alexa: You can enable Safeco’s Insurance Advisor skill with Alexa and access quizzes, ask insurance questions and learn more about the industry.
CONS
- Below-average customer satisfaction: Safeco and its parent company Liberty Mutual both received below-average rankings in J.D. Power’s 2020 Home Insurance Study.
- Limited discounts: Compared to other providers, Safeco offers fewer ways to save on home insurance.
Safeco Highlights
Methodology
We evaluated the company based on its customer rating and experience, financial stability, and coverage to create our Safeco Homeowners Insurance Review. To compare this company with home insurance companies across the board, we then calculated a Reviews.com score out of 5 points based on the following:
- Customer Ratings: Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this using J.D. Power Homeowners Satisfaction ratings.
- Coverage: As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options and add-ons available.
- Confidence: It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength ratings indicate a positive history of being able to pay out claims. We measured this using AM Best’s ratings, which specializes in assessing the financial strength of insurance companies.
- Customer Experience: The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the NAIC National Complaint Index.
The Competition
Reviews.com Score | AM Best Financial Strength Rating | 2020 J.D. Power Score | NAIC Customer Complaints | |
Safeco | 3.5 | A | 802/1,000 | More complaints than average |
State Farm | 3.75 | A++ | 829/1,000 | Fewer complaints than average |
Geico | 2.75 | A++ | N/A | Fewer complaints than average |
Allstate | 4 | A+ | 829/1,000 | More complaints than average |
All information accurate as of 08/25/2021
Safeco vs. State Farm
When comparing Safeco with State Farm’s homeowners insurance, you may have noticed that State Farm has a higher J.D. Power score than Safeco overall. But State Farm has fewer customer complaints than the industry’s average, whereas Safeco has more. As for financial strength, Safeco is only graded with an A, while State Farm has a more robust A++ rating.
When it comes to discounts, both Safeco and State Farm are relatively limited in their offerings, although Safeco does have a few more. Because of its fewer complaints and stronger financial strength, State Farm edges out Safeco with the Reviews.com rating.
Safeco vs. Geico
Concerning customer satisfaction, Safeco homeowners insurance has an above-average number of complaints while Geico has a 0.00 complaint index score for its homeowners insurance product. However, because Geico primarily focuses on auto insurance, the company may not generate enough home insurance business to warrant a complaint index score by the NAIC. Geico provides home insurance through partners and Safeco uses a network of underwriting partners under the umbrella of its parent company Liberty Mutual.
In terms of financial strength, Geico has a stronger company ranking with an A++ from AM Best, while Safeco only has a grade of A. Safeco has more discounts available for its customers than Geico, which is not surprising given Geico’s focus on auto coverage. Both companies offer homeowners coverage and policies nationwide.
The Bottom Line
Safeco has been in the insurance market for a long time, but it is still not as well known as other insurance carriers. Its low popularity could be because Safeco has a below-average customer satisfaction rating. What Safeco — and every other insurance company — advertises on its website may not indicate your personal experience or offerings that the company has across the United States. Safeco’s coverage, selection of packaged deals, discounts and policies against identity theft might be worth taking a look at when comparing quotes for home insurance.