Is Otto Insurance a Legit Alternative to GEICO, State Farm and Allstate?
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Last Updated: June 14, 2023
In today’s ever-changing insurance landscape, it’s natural to have concerns about the legitimacy of insurance providers. As we search for the best coverage options, we want assurance that the companies we choose are trustworthy and reliable. When exploring alternatives, it becomes crucial to consider factors such as competitive rates, exceptional customer service, and exclusive discounts that distinguish one provider from another.
First let’s address the main question here.
Is Otto Insurance a Legit Alternative to GEICO, Statefarm and Allstate?
With established insurance companies like GEICO, State Farm, and Allstate out there, it’s crucial to know if newcomers like Otto Insurance is a worthy alternative or just another quotes aggregator.
Otto Insurance does things a bit differently. Instead of being an actual insurance company, it acts as a platform that lets people gather and compare quotes from different providers. By using technology to simplify the process, Otto Insurance aims to make the process of getting the right coverage easier for everyone.
Comparing State Farm vs. GEICO vs. Allstate vs. Otto
In the vast landscape of insurance providers, each company possesses its own distinct specialties that cater to specific segments of the insurance market. For instance, GEICO might excel at providing discounts, while Allstate and State Farm may offer unique advantages in other areas. So, let’s explore which of these companies shine in which areas.
Best For Cheap Car Insurance: State Farm
State Farm’s annual rates for a full coverage policy are cheaper than GEICOs by $427. And if that’s not enough, State Farm’s rates are even cheaper than those from Progressive, Allstate, or Farmers. Only USAA is cheaper than these, but it’s only available to military families. Rest easy knowing that State Farm is the cheapest in most states. Also, State Farm is currently the largest auto insurer in the U.S. according to the National Association of Insurance Commissioners (NAIC), closely followed by GEICO.
|Insurance company||Average cost of full coverage car insurance|
*Please note: Otto insurance does not have actual rates as it provides quotes from different insurance providers.
Gotta love tech. My wife hit a deer so I started the claim using the @GEICO app. Uploaded all the details, pics, etc. No waiting on hold or spending forever on the phone. #NotAnAd but WTG @GEICO making that super efficient. pic.twitter.com/OhH56kdZf7
— JJ Ryan (@JJRyanOnAir) August 19, 2022
Best for Car Insurance Discounts: GEICO
GEICO auto insurance offers an extensive range of discounts that can help drivers save big on their policies. In fact, GEICO is known for providing affordable coverage, making their discounts even more irresistible. Plus, unlike competitors like State Farm, GEICO offers savings for cars with safety features and insuring multiple vehicles. Here is the list to compare the car insurance discounts offered by GEICO, Allstate and State Farm:
Best for Customer Service: Allstate
When it comes to insurance providers, excellent customer service is a crucial factor for policyholders. Allstate Insurance is renowned for its commitment to delivering exceptional customer service experiences. With minimal service complaints and industry recognition, customers can trust that they’re in good hands. Its personalized support, 24/7 availability, streamlined claims handling, and comprehensive coverage options make it an attractive choice for customers in search of exceptional customer service.
Here is the rating given by NAIC and J.D power to GEICO, Allstate and State Farm
Otto insurance customers reviews and ratings are mostly from online platforms like google and Facebook which are unfortunately negative. It currently holds a 2.6-star rating out of five on Google and a 1.6-star rating on the social media platform Facebook.
Best for Insurance Comparison: Otto
The approach adopted by Otto Insurance, although different from traditional comparison sites, can offer some advantages. By sharing your information with multiple partners, you can receive a wider range of quotes and options to choose from. However, it’s important to be aware that this may also lead to increased contact from various companies seeking to provide you with their services.
On average, drivers can save over $500 per year by using Otto auto insurance services and find the best rates in their area.
Here are some of the savings that you can get from certain insurance companies if you use Otto:
|Insurance company||Savings per month|
Please note: When receiving quotes from Otto car insurance companies, you may find that your quoted premium varies from these national average rates for a variety of reasons based on how car insurance companies use the rating factors
How these Companies Compare with Other Big Companies
Otto Insurance vs GEICO:
Otto Insurance offers a quote-comparison platform that shares personal information with partners, providing a wide range of options for home and car insurance. GEICO, a well-established insurance company, is known for its competitive pricing and accessible customer service, making it a popular choice for both home and car insurance.
GEICO vs Progressive:
GEICO stands out for its affordable prices and customer satisfaction in both home and car insurance. Progressive, on the other hand, is recognized for its technological advancements and innovative approach, offering options like usage-based insurance. Customers should consider their preferences for pricing, customer service, and technology integration when comparing GEICO and Progressive for their home and car insurance.
Allstate vs Farmers:
Allstate Insurance excels in customer service, providing comprehensive coverage options and personalized support for both home and car insurance. Farmers Insurance focuses on agent availability and a strong local presence. Customers should consider their preferences for customer service, coverage options, and the level of interaction with agents when comparing Allstate and Farmers for home and car insurance.
Otto vs Progressive:
Otto Insurance operates as a quote-comparison platform for home and car insurance, sharing personal information with partners to provide a wide range of options. Progressive is an established insurance company known for its technological innovations and features such as usage-based insurance. Customers should weigh the convenience of multiple options through Otto versus the innovative offerings of Progressive when considering home and car insurance.
State Farm vs Farmers:
State Farm and Farmers are both reputable insurance providers for home and car insurance. State Farm, one of the largest insurers in the U.S., offers a wide range of coverage options and has a strong network of agents, providing personalized service. Farmers Insurance emphasizes local agent availability and offers various coverage options tailored to individual needs. Customers should consider factors such as coverage options, agent interaction, and reputation when comparing State Farm and Farmers for home and car insurance.
It’s important to compare insurance companies against each other. But choosing the best car insurance company isn’t just about that. To make the best decision, you need to consider your unique situation and needs. While using Otto’s quote-request tool can offer a wider range of options, it’s important to consider the potential increase in contact with multiple companies and the personal information you share. Direct insurance from large providers like GEICO, Allstate, and State Farm offer discounts and a streamlined claims process. Whether you prefer privacy, convenience, or a more involved quote process, the decision to use Otto’s services or a traditional insurance-comparison site is up to you.
Frequently Asked Questions
Are GEICO's prices lower compared to Progressive?
While both GEICO and Progressive provide affordable car insurance options nationwide, GEICO generally offers lower overall rates. However, Progressive tends to offer more competitive prices specifically for high-risk drivers.
Which company is larger, Allstate or State Farm?
According to the National Association of Insurance Commissioners (NAIC), Allstate ranks as the fourth-largest auto insurance provider in the United States, following State Farm, GEICO, and Progressive. In 2021, Allstate wrote premiums worth $27.2 billion and holds a 10.4% market share in the car insurance industry. State Farm, on the other hand, holds the position of the largest auto insurance provider in the U.S.
Who is the owner of Otto Insurance?
As per CrunchBase profile, Otto Insurance owner’s is Joshua Keller.
- Is Otto Insurance a Legit Alternative to GEICO, Statefarm and Allstate?
- Comparing State Farm vs. GEICO vs. Allstate vs. Otto
- Best For Cheap Car Insurance: State Farm
- Best for Car Insurance Discounts: GEICO
- Best for Customer Service: Allstate
- Best for Insurance Comparison: Otto
- How these Companies Compare with Other Big Companies
- Frequently Asked Questions
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