AAA vs. Auto-owners: Which Company is the Best Fit for You?

Quick Facts

• Looking at the national averages for car insurance, Auto-owners offers significantly less expensive rates than AAA
• AAA offers more discounts than Auto-Owners Insurance
• Auto-owners offers more affordable average prices for policyholders who may not have much of a commute

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AAA vs. Auto-owners: Which Company has the Cheapest Car Insurance?

Are you considering a new insurance policy? With so many ads from all sorts of companies offering big discounts, you're probably wondering exactly how much you might be able to save.

You might be considering AAA or Auto-owners as potential options, but which carrier will offer you cheaper rates?

Looking at the national average rates for both companies, AAA is quite a bit more expensive than Auto-owners, with prices averaging $314 per month compared to just $179 with Auto-owners.

But Auto-owners may not be the most affordable or best option for every driver out there. Insurance carriers use a ton of complex algorithms to calculate premiums, so depending on how clean your driving record is or where you live (among several other factors), you could see wildly different rates from the ones above.

Luckily, we've broken down average premiums from both AAA and Auto-owners by several different rate factors, so read on to find out which carrier is the best for you.

AAA or Auto-owners: Average Car Insurance Rates by State

AAA and Auto-owners compete against each other in six states, with AAA offering more affordable prices to the average driver in all of them. Nebraska has the most noticable difference, where Auto-owners premiums are over 70% less expensive than auto insurance rates at AAA.

But there's more to car insurance than just where you call home. As we mentioned above, there's a lot of things that go into how auto insurance companies determine your prices. Read on to learn more.

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Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- generally pay a lot for insurance compared to older drivers. It's usually because young, inexperienced drivers are statistically much more likely to get into accidents since they have less experience on the roads.

Even so, that doesn't mean that teen drivers have to just accept sky-high car insurance premiums. For example, 18-year-old drivers pay an average of nearly $300 less a month by choosing Auto-owners over AAA.

That being said, with both carriers, you'll see your prices reduce significantly by the time drivers turn 25. Auto-owners offers the steepest decrease, with 25-year-olds paying less than a third of what 18-year-old drivers are charged. AAA's average rates drop almost 60% during that same period.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll typically enjoy the cheapest auto insurance prices you'll ever find. You've been on the road for years, and all that experience pays off when it comes to your monthly rates for car insurance.

But who has the best premiums for retired drivers between AAA and Auto-owners? Auto-owners gets the edge, with prices for drivers 65 and older nearly 45% cheaper than the national average for AAA.

Which is the Best Company for Married Drivers?

Did you know that insurance premiums are normally more affordable for married couples than they are for those who are single? This usually boils down to married policyholders having multiple cars on their policy -- something many car insurance companies will reward with discounts.

When it comes to relationship status, Auto-owners is the clear winner for single policyholders, with rates about $158 per month cheaper than AAA, on average. The advantage is also clear for married drivers - Auto-owners offers the lowest average premiums.

AAA vs. Auto-owners: Average Rates by Gender

Because men are more likely to get into accidents and get tickets, they have an increased chance of filing a claim with insurance. Therefore, men tend to get higher rates than women.

Usually, women see prices more than 10% a month less with AAA, and around 6% less with Auto-owners when compared to their male counterparts.

Looking at the data for each company specifically, Auto-owners comes out as the most affordable option for both genders. On average, male drivers save about $146 per month and women save about $123 with Auto-owners compared to the average AAA policyholder.

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AAA or Auto-owners: Compare State Minimum vs. Full Coverage Rates

*State minimum value indicates liability-only policies at each state's minimum bodily injury and property damage (BI/PD) limits

**Full coverage indicates state minimum BI/PD limits with collision and comprehensive coverages added to policy.

For most people, insurance can be pretty complicated. There are so many different limits and terms that it can make it pretty confusing to find the right policy.

The two most common policies that many drivers look at fall into two categories -- liability only (which provides bodily injury and property damage coverage for other drivers and their passengers if you cause an accident) and full coverage (which includes two additional coverages -- comprehensive and collision -- in addition to liability).

If you're looking for state minimum liability insurance, Auto-owners usually offers significantly less expensive rates of $99 compared to AAA's $169. When it comes to full coverage policies with similar limits, Auto-owners again has the edge, with policies around $200 a month cheaper than AAA, on average.

Is AAA or Auto-owners Better for Drivers with Spotty Records?

It's no big secret that drivers who are accident-free get better deals on their auto insurance. But even if you have a spotty record, you can still find plenty of ways to save some cash on your monthly bill.

You'll probably end up paying more with tickets and accidents on your record, but which of these two carriers offers the lowest premiums to drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

AAA policyholders can expect their prices to go up an average of $86 per month if they get a ticket, while Auto-owners generally raises rates about $44 a month, on average.

However, Auto-owners has less expensive prices for drivers in both categories. Drivers with a clean record can save around $92 per month and drivers with a speeding ticket can save about $134 a month with Auto-Owners Insurance.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their car insurance through AAA can expect to see around an $126 -- or about 37% -- increase in their auto insurance premiums. Drivers who use Auto-owners for their insurance will see a monthly bill around $47 (or 28%) more expensive after reporting a collision to their auto insurance carrier.

Overall, drivers who use Auto-owners end up with the cheaper prices after an accident, with monthly rates averaging $168 compared to AAA Insurance's $339.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single accident or ticket when it comes to your car insurance bill. AAA drivers usually see a 47% raise in their insurance premiums after a DUI charge, while Auto-owners will typically increase prices by about 54%.

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How does Credit Score Impact AAA and Auto-owners Rates?

In many cases, your credit score can be used as one of the factors to calculate your monthly auto insurance rates. This isn't always the case (Hawaii, for example, has banned the use of credit score as a rating factor) but it will come into play for quite a few drivers.

The reasoning insurance companies use is that policyholders with good credit will be more likely to pay their bills on time; so they'll reward them with cheaper premiums, while those with poor credit will normally be forced to pay more.

Looking specifically at AAA and Auto-owners, which company has the best rates for drivers at different credit levels?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

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Is AAA or Auto-owners Better for Drivers who Work from Home or Have Short Commutes?

The amount of time you spend behind the wheel of your car plays a big role in how much car insurance carriers will charge for coverage. Generally, the more miles you put on your vehicle each year, the more you can expect to pay for coverage.

Auto-owners tends to be the more affordable option for both drivers who put 6,000 miles on their vehicles each year, as well as those who average twice that figure. Auto-owners's average prices for drivers with 6,000 annual miles come in around 42% cheaper than AAA. Those who drive 12,000 miles yearly can expect to pay about 44% less with Auto-owners over AAA.

AAA vs. Auto-owners: Compare Rates for Urban, Suburban, and Rural Drivers

Where you live can play a large role in how much you pay for insurance. Typically, those who live in rural areas will pay less than policyholders in urban areas because there are a lot fewer cars on the roads in those areas.

When comparing these two companies side-by-side, Auto-owners usually comes out as the lowest option for drivers in all types of areas, no matter if they're urban, suburban, or rural.

Drivers in rural ZIP codes see the most affordable prices from both carriers, but Auto-owners comes out on top with average premiums around $164 a month. Auto-owners also has more affordable average rates for policyholders in urban and suburban ZIP codes -- a 47% and 44% per month respective difference when compared to AAA drivers in similar areas.

AAA vs. Auto-owners Discounts

You want to save as much money as possible, right? The best way to do that is by taking advantage of as many car insurance discounts as you can.

But where do you even start? With so many discounts out there, it may seem challenging to find all the of the ones you qualify for.

In the section below, we've compared all of the different discounts offered by AAA and Auto-owners so that you can easily see which company offers the most discounts and see which ones you might be able to take advantage of.

AAA blows Auto-owners away when it comes to the sheer amount of discounts available, offering nine more discounts than Auto-owners.

Both companies offer lots of the same discounts -- like anti-theft discounts, discounts for being a defensive driver, distant student discounts, and discounts for being a good student -- but AAA also offers AAA discounts, academic discounts, drivesharp discounts, and more that Auto-owners does not.

On the flip side, Auto-owners has a couple unique discounts of its own -- ABS discounts, company car discounts, education discounts, and more.

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Final Thoughts: Is AAA or Auto-owners Best for You?

You've seen the effect certain variables have on your auto insurance and the different discounts carriers offer. That's all well and good, but when it comes down to it, is AAA or Auto-owners the right one for you and your specific profile and needs?

Auto-owners might be best for you if....

• Your driving record contains an at-fault collision.
• You want basic insurance coverage at the state minimum limits.
• You drive fewer than 6,000 miles annually.

AAA might be best for you if...

• You're looking for the carrier with the most discounts.

We hope this guide helps you get a good idea of the differences between AAA and Auto-owners. We also hope we've given you the information you need to make the best decision when it comes to your auto insurance.

At the end of the day, the best way to make sure you're getting the best deal on your car insurance policy is to compare quotes from multiple companies, not just AAA and Auto-owners. Luckily, sites like Compare.com make it easy for you to do just that. Just enter your ZIP code below and get multiple free quotes from some of the best auto insurance carriers in your area, all in just a few minutes.

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AAA vs. Auto-owners FAQs

Is AAA or Auto-owners cheaper?

Looking just at the national average premiums, Auto-owners is the less expensive of the two companies, offering average rates of $179 a month compared to $314 for AAA. But Auto-owners won't necessarily be the cheapest company for every policyholder, since there are a variety of different factors (things like driving record, age, gender, etc.) that play a role in how much you pay.

Who is better, AAA or Auto-owners?

Sadly, the real answer is "it depends.". No single carrier is "better" for everyone -- it all depends on the makeup of your unique insurance profile.

Why do AAA and Auto-owners offer me different rates?

Car insurance carriers take a look at lots of different variables when calculating the prices they charge policyholders. Things like gender, your driving record, age, where you call home, and sometimes even things like your credit score can all come into play. Both AAA and Auto-owners use different formulas, so each one will most likely offer different premiums. The only real way to see which company is the lowest for you is by comparing personalized quotes from many different companies.

How do I know if AAA or Auto-owners is right for me?

The only way to find the auto insurance carrier that's right for you is by getting quotes from several carriers and finding the one best suited for your individual budget. Luckily, Compare.com makes it easy for you to do just that. Just enter your ZIP code and you'll get free quotes from dozens of the best insurance companies in your area. With those, you can guarantee you're getting the most affordable premium. And who knows, the best company for you might not be AAA or Auto-owners at all!

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Methodology

All of the data referenced in this article has been gathered in collaboration with Quadrant Information Services. We analyzed more than 2.5 million rows of carrier-reported data to calculate the average rates referenced above. All rates are based on an insurance profile of a single-vehicle policy for a driver that owns a 2016 Honda Accord. For more information on how we calculate rates, please reference our data methodology.