Tyron Jones
Personal Finance Expert
Updated: 02/2022
Tyron Jones is a finance expert who has operated within the auto insurance business for more than 10 years. He has written many other finance related articles for a number of prominent publications.
Most states require at least liability insurance on a car, which can be expensive if the driver has a history of violations or accidents. Unfortunately, auto insurance can be expensive even for good drivers, so it is important for them to seek quotes to ensure they receive the coverage they require to meet the minimum requirements in their state at the lowest possible rate. Safe Auto Insurance Company may be a good choice for your auto insurance needs if you are seeking more affordable coverage.
Overview
Safe Auto Insurance Company is not like other providers of auto insurance. Instead, they provide non-standard auto insurance that adheres to minimum state requirements. Currently, the company provides quotes for auto insurance in 17 states, and drivers have the option of securing greater minimum coverage in some states. For the driver with a less than perfect driving record or those who may be seeking more affordable auto insurance, this company may be worth taking the time to research.
It’s always a good idea to obtain several insurance quotes before making a final decision; however, not everyone finds the quotes provided by Safe Auto competitive. In fact, our research found this company’s rates higher even for good drivers and those with high credit scores. There are exceptions, so it’s important for each driver to conduct his own research and choose the policy that meets his needs and state requirements.
Rate Comparison
One of the most important aspects of choosing an auto insurance company is a comparison of premiums. While obtaining a quote is the first place to start, do not be fooled into thinking the quote you receive from one company is the best you will receive. Read more about the best way to shop for car insurance. For instance, you should compare what you are paying now with several other major insurance company. Research on six companies in addition to Safe Auto showed the following results by category:
* Single female age 21 Higher than four
- Single male age 21 Higher than two
- Married male age 30 Higher than five
- Married female age 60 Higher than three
The insurers with whom the research compared rates included both non-standard insurers such as Safe Auto and Standard Insurers such as Geico, Allstate and others. All the drivers in the comparison drove a 2012 Toyota Camry and had no recent driving violations.
Analysis
When reviewing the various categories, it becomes obvious Safe Auto is not the most competitive choice for either 21-year-old males or 21-year-old females even if they have excellent driving records. This relies on the assumption drivers under the age of 25 are higher risks than older drivers; however, the cost of insuring these drivers varies by state and insurer, so research is essential.
Drivers over the age of 25 who have clean driving records may not be interested in including Safe Auto as a company to consider. A review of the research shows the quotes for drivers in this category average 10-25 percent higher than the average quote. One thing to keep in mind is those who fall into this age group probably have more assets to protect than younger drivers, so a policy that only provides minimum coverage is probably not the best choice.
Where do young drivers who have experienced accidents for which they were deemed at fault obtain affordable coverage? In these cases, the drivers may want to research what non-standard auto insurance providers can do for them. Unfortunately, Safe Auto may not the best choice. Out of seven quotes, the best one for both males and females age 21 who had been responsible for accidents came from Geico. The quotes were provided by one male and one female, both age 21, who had two at fault accidents in their 2009 Toyota Camry. These types of drivers are likely to find a difference of 16-65 percent between Safe Auto and other insurers.
Safe Auto Car Insurance Review
While conducting research and obtaining quotes before selecting an insurance carrier are important, it is important to keep in mind factors that may affect the difference in rates among carriers. The geographical area is one factor to keep in mind; some areas even within a state may have higher premiums due to risk factors. Another factor that will affect the premium is the coverage options and service selections a potential policyholder selects since some people are not satisfied with just the minimum requirements of their state.
Although you would think the fact Safe Auto only offers minimum coverage in most of the areas it covers would translate into more competitive pricing, this does not seem to be the case. Even though customers in the 17 states Safe Auto covers may not be receiving the best rates in auto insurance, they are getting what a person would expect from a policy that is intended to satisfy the minimum coverage for liability and physical damage as mandated by the state in which they live.
Pros and Cons of Safe Auto Insurance
One thing potential customers need to keep in mind is the industry rating of Safe Auto. The industry ratings of this company are just below average though it did receive high ratings for its longevity as a business. On the other hand, according to the NAIC complaint index, the company has a much higher ratio of complaints than the market average; this includes the fact the company provides non-standard auto insurance.
In order to offset higher premiums, the company offers some discounts for policyholders such as the following:
- 5 percent for an airbag under MED coverage
- 5 percent for anti-lock brakes under BI, PD, MED and Collision coverage
- 5-15 percent for an anti theft device under Comp coverage
- 5 percent for claims free renewal under BI, PD, MED, UMBI, Comp and Coll coverage
- 10 or 15 percent for a good student under BI, PD, MED, UMBI, Comp and Coll coverage
- 10 percent for having daytime running lights under BI, PD, MED, UMBI, Comp and Coll coverage
- 5 percent for homeowners under BI, PD, MED, UMBI, Comp and Coll coverage
- 15 percent multi-car discount under BI, PD, MED, UMBI, Comp and Coll coverage
- 15 percent for a non-owner under BI, PD, MED, UMBI, Comp and Coll coverage
- 10 percent for paying in full under BI, PD, MED, UMBI, Comp and Coll coverage
There are also some fees that apply to specific circumstances. Some are common within the industry, but others appear to be specific to this type of insurance company. This doesn’t mean other companies may not have those fees, but they appear uncommon.
Young drivers or those who have a poor driving record or accidents may not have the financial ability to afford higher coverage limits on their auto insurance. Safe Auto caters to these types of drivers and provides non-standard insurance. What this means is the company provides policies that only meet minimum state requirements. Drivers also have the option of buying comprehensive and collision coverage at competitive rates. Safe Auto also provides assistance to drivers who need to file a SR22 or FR44.
Conclusion
The key to choosing the right insurance company is research. For example, we compared Safe Auto to an Erie Insurance quote and a Mercury Insurance quote here. It’s important to obtain several quotes before making a final decision. Those drivers who are under the age of 25 or older drivers who have accidents or poor driving records may find the non-standard coverage Safe Auto offers worth researching. However, comparing rates is important. Even though Safe Auto specializes in providing only the minimum state requirements for liability car insurance, they do not usually offer the lowest rate. In fact, a comparison with six other companies showed they were not competitive with the industry standard. For this reason, it is essential for each driver to obtain quotes from several insurance providers before choosing one to insure his or her car.
