Safeco Insurance Review & Complaints: Auto, Home, Renter’s, Boat, Motorcycle & Umbrella Insurance (2024)

Premiums
Claims
Feedback
Financial Strength

When it comes to Safeco Insurance reviews found on the internet, they typically fall into one of the following categories:

1. User Reviews – Yelp-style sites where customers can leave feedback.
2. Data Dumps – Lists a bunch of facts, but provides no stance or editorial viewpoint.
3. Generic Marketing Content – Not reviews, but rather rewritten marketing material.

Table of Contents

What is Safeco Insurance company?

This overview of Safeco insurance is admittedly the boring part. It has good information, but we won’t be upset if you want to skip ahead.

The company is a subsidiary of its parent company Liberty Mutual Insurance. In 2008, Liberty Mutual Insurance purchased Safeco, but they still operate independently from Liberty Mutual.

The company’s primary sales force is a network of independent agents and agencies licensed to sell their products. This is significant because it differs from popular companies like Geico, Esurance, and Progressive, which are direct-to-consumer companies.

What that means for you: In order to get a Safeco insurance auto insurance policy, you must work through a licensed agent. There is no bypassing the human element by simply getting coverage over the phone or online. This can be important for someone who has a complicated insurance portfolio, but unnecessary for those who know what they are doing or want simple coverage.

It should be noted, however, that the website does allow for you to start an online quote on insurance products, and in many cases actually see a price. But the auto policy will ultimately be forwarded on to an insurance agent before it can be finalized.

The other major difference is related to price, and why agent-driven insurance companies often cost more. We will go into more depth about this in the Rates and Premiums section below.

What is Safeco Insurance Company?

This overview of Safeco insurance is admittedly the boring part. It has good information, but we won’t be upset if you want to skip ahead.

The company is a subsidiary of its parent company Liberty Mutual Insurance. In 2008, Liberty Mutual Insurance purchased SafeCo, but they still operate independently from Liberty Mutual.

The company’s primary sales force is a network of independent agents and agencies licensed to sell their products. This is significant because it differs from popular companies like Geico, Esurance, and Progressive, which are direct-to-consumer companies.

What that means for you: In order to get a Safeco insurance auto insurance policy, you must work through a licensed agent. There is no bypassing the human element by simply getting coverage over the phone or online. This can be important for someone who has a complicated insurance portfolio, but unnecessary for those who know what they are doing or want simple coverage.

It should be noted, however, that the website does allow for you to start an online quote on insurance products, and in many cases actually see a price. But the auto policy will ultimately be forwarded on to an insurance agent before it can be finalized.

The other major difference is related to price, and why agent-driven insurance companies often cost more. We will go into more depth about this in the Rates and Premiums section below.

What products and services are offered?

Safeco is a full-service insurance company, and they sell a lot of insurance coverage options. Their bread and butter are auto insurance and home insurance products, but it does not stop there. Here is a breakdown of their primary product offerings, with comments below the list:

• Auto Insurance – The coverage options for Safeco car insurance are standard. Comprehensive, collision, roadside assistance… you name it, they got it. This is usually the case for auto insurers unless you are talking about high-risk or non-standard insurance companies, which Safeco is not.
• Home Insurance – Just like Safeco car insurance coverages, their home insurance portfolio is pretty standard across the board. Homeowners insurance is not just limited to houses either, condo insurance falls under this category.
• Renters Insurance – Think of this like a watered-down home insurance policy that covers your stuff and potential liability that arises on the property you are renting, like a dog bite or kitchen fire. Safeco’s coverage here is normal, nothing out of the ordinary to report.
• Boat & Watercraft Insurance – The standard coverage package will come with agreed value (boat value is determined ahead of time), personal effects coverages (fishing poles, water skis, etc), and fuel spill/wreckage removal (they will clean it up if the boat sinks).
• Classic Car Insurance – Like boat insurance, classic car coverage comes with agreed value, so you still get the predetermined amount of coverage, even if the car goes down in value. There are ways to customize your policy and include extras like pet coverage, you know, in case Fido gets injured while hanging out the passenger window. Other add-ons include Emergency Assistance or Personal Property Coverage.
• Motorcycle Insurance – Since many riding enthusiasts like to customize their bikes, coverage can be personalized to fit an individual’s motorcycle. Safeco designs all of their motorcycle policies to satisfy all mandatory requirements across every state. Additionally, each policy comes standard with $1,000 of gear replacement (Helmet, boots, etc) and a two-year coverage replacement cost for a Harley-Davidson®.
• RV Insurance – Recreational Vehicle coverage comes standard with 150 days of use and offers the same basic coverage options as regular Auto Insurance. So unless you live in your RV full time or travel across the country during the entire MLB season, their standard policy should cover enough days on the road. Once you’ve decided to put the RV back in storage, you can reduce your coverage thus saving you money.
• Umbrella Insurance – Umbrella policies act as backups to primary coverage like auto and home insurance, adding an extra level of liability protection once those are exhausted. They also fill in the gap by covering things such as libel and slander lawsuits. Safeco’s website reports umbrella policies are sold in $1 million increments up to $5 million and you qualify for a discount on a homeowners Insurance policy when you have the Umbrella Insurance, in most states.
• Safeco RightTrack – For my full analysis, visit the review of Safeco RightTrack program.

Read more:

• Harley Davidson Insurance Review & Complaints: Car Insurance 
• Safeco RightTrack: Complete Guide & Review

Now for our opinions on this insurer.

Somewhere along the line, insurance went from being a safety net to prevent financial disaster after some sort of accident or loss, to a bloated, oversold, worthless feature-packed product that is marketed as coverage.

Let us explain – Insurance, at its core, is designed to make you financially whole after some major incident.

Let’s say you cause $50,000 worth of damage in a car accident. That is what insurance is for. It is NOT for fixing a $200 dent in your bumper after backing into a light pole.

At some point insurance companies figured out they could sell (or include) all these ridiculous add-on features to insurance policies, and ultimately charge more money for the service.

Safeco is a prime example of this.

Take their Diminishing Deductible that is included in their car insurance policies. Every year you go without an accident, your deductible goes down by $100 (up to a maximum of $500).

While it may be included in a car insurance policy, it certainly is not free. Insurance companies do not simply add-on features and additional coverage out of the goodness of their hearts. It’s baked into the cost of the policy.

Not to mention the human psychology that goes into this. If you did happen to get into a small fender bender, you may think twice about filing a claim because you’re afraid of losing your vanishing deductible. They know this.

Accident Forgiveness is the same thing. If it is included in the policy automatically, you are paying for it.

In our opinion, these are marketing gimmicks that make for good commercials and sales pitches when sitting in an agent’s office.

Ready for a break? Watch this video review of Safeco.

Are the company’s rates and premiums expensive?

As mentioned above in the Overview, the company operates with an independent agent-driven sales model, which means you must work directly with a licensed agent in order to get a policy.

While not always the case, insurance companies that use the agent-only model often cost more than their direct-to-consumer counterparts since they have to pay pretty hefty commissions for each new policy and renewal (anywhere from 5-20% of the total premium amount).  On the flip side, direct-to-consumer insurance companies spend a lot on marketing but make up the difference from bypassing the agent and their commissions. (Some direct insurance companies still sell through agents, though it’s not their primary sales tool.)

Another thing that can drive up premium costs is the “add-ons” bundled into the policy, as discussed in the section above. Accident Forgiveness and Diminishing Deductibles simply add to the overall price the customer has to pay.

Our sample quote entered into Safeco yielded results that seem to back up everything already mentioned in this section.

Safeco is expensive.

We ran a new quote test while writing this review, and it came in almost 20% above the average for car insurance (19.45% to be exact). This is nearly identical to the results from the previous two tests.

In the company’s defense, they are set up as a mutual insurance company, which means the policyholders are more like shareholders. Safeco can share the company profits by reducing premiums or issuing dividends, but that is not guaranteed. On the other side of the coin, it can increase premiums to cover shortfalls during bad years.

How does the company advertise?

For those who reside in and around Seattle, Washington, Safeco is a pretty big name when it comes to sports. The city skyline is flanked to the south by both the baseball field occupied by the Seattle Mariners and the football field where the Seattle Seahawks play. The baseball stadium is called Safeco Field and first opened in 1999.

The company bought the naming rights to the stadium prior to opening.

During our research about their advertising practices, we did not uncover anything that seemed alarming. For the most part, they try and compete with the humor-based TV ads frequently run by Allstate, State Farm and Farmers.

On a positive note, they do not heavily push the industry standard “Drivers Save $XXX by Switching To Us” mantra. Insurance companies that do this are taking advantage of the fact that most people switch because they save money. That’s why they can pretty much all make that claim. Not because they are generally cheaper.

You can generally get a wide range of auto insurance discounts, including a low mileage discount for commuters.

Some other discounts include: bundling with homeowners discount, safe driver discount, anti-lock brakes discount, prevention course discount program, as well as additional discounts.

Safeco Insurance Claims Process

Ease of Filing a Claim

The actual process of filing an insurance claim is fairly straightforward, but limited in options. While many other insurance companies allow you to file online or even through a mobile app, Safeco claims must be filed over the phone. The good news is the claims center is open 24 hours a day, 7 days a week.

• 800-332-3226 – File a Claim
• 877-762-3101 – Roadside Assistance

Average Claim Processing Time

Safeco Insurance provides a 24/7 claims center, ensuring accessibility at all times. However, customer feedback suggests that their claims process can be lengthy and frustrating. Delays in claim handling have been a common complaint, which may impact the average claim processing time.

Customer Feedback on Claim Resolutions and Payouts

Customer feedback regarding Safeco Insurance’s claims handling has been mixed. Some policyholders have reported dissatisfaction with the claims process, citing issues such as delayed responses, disputes over claim denials, and inadequate payouts. Others have had more positive experiences. As with any insurance company, individual outcomes may vary.

Safeco Insurance Digital and Technological Features

Mobile App Features and Functionality

Safeco Insurance offers a mobile app that allows policyholders to manage their policies, access digital ID cards, and initiate the claims process. The app provides basic functionality but may not be as robust as those offered by some other insurance providers.

Online Account Management Capabilities

Safeco Insurance provides online account management tools that enable policyholders to access policy information, make payments, and view policy documents. While the online portal offers convenience, some users have reported issues with website functionality and user experience.

Digital Tools and Resources

Safeco Insurance offers various digital tools and resources on their website, including informative articles and resources to help customers understand insurance concepts. These resources aim to educate policyholders about their coverage options and insurance-related topics.

Is customer feedback positive?

Claims, and rates, and service! Oh my!

When looking at customer complaints and testimonials, we frequently came across the same general issues mentioned by policyholders– Claims, rates, and customer service.

But don’t take our word for it. Here are comments left by others:

My parent’s have been with Safeco Home Insurance for 35 years and recently made a claim due to a slow leak that damaged their wood floors and created mold in the walls. The claims adjuster was really rude and they’ve been getting nothing but poor customer service. In the end they just received a call stating they are denying the claim…

-Kim Satterfield

We recently were told our company was being switched to Safeco. After receiving letters twice from Safeco stating our rates will not change, we get our policy within 2 weeks and sure enough they have raised them. No reasons given. And the increase was more than 40 dollars although the policy coverage has not changed what so ever. Thankfully we only have about a month and half before renewal. Insurance shopping we will be doing.

-Mrs Campbell

This has been the worst experience ever. I would not recommend this company to my worst enemy. Customer service is horrible. It took 5 months and 3 calls to 2 different supervisors just to get a call back from my adjuster. His manager did a terrible job of enforcing him to do his job. It is now basically June and my minor accident with clear liability happened in Aug of 2013 and it has still not been settled…

-Troy

I too was involved in an accident with a Safeco insured driver. Her fault….but what a nightmare dealing safeco. Adjuster works “part-time”, will not return a phone call, does not reply to email. Standard delay tactics….I have never seen such horrible customer service…

-Mark

The testimonials left on other consumer reporting websites are not any better.

On Pissed Consumer’s website, an individual said they were hit by a Safeco insured driver and the police determined the other party was at fault. But the claims department took a long time to make a determination and ultimately denied the claim.

A person from California wrote about their experience on Ripoff Report’s website after they were hit by a Safeco insured driver as well. According to them, the company shorted the initial damage payout by $500, and then when the person refused the payment, it “reassessed” the claim and lowered the entire reimbursement by $1,400.

Read more: What do I need to do to cancel my car insurance policy with Safeco Insurance?

What’s the bottom line?

Safeco is NOT our favorite insurance company. Plain and simple.

We believe they are overpriced in many instances, and their “mandatory” policy add-ons help to drive up those prices. There are so many complaints about their claims department that they cannot justify the elevated insurance cost.

In our opinion, there are many other good insurance carriers out there who provide better service and more competitive pricing, and this company is not worth settling for.