AAA vs. Electric: Which Company is the Best Fit for You?

Quick Facts

• Looking at the national averages for auto insurance, Electric offers more affordable rates than AAA
• AAA tends to be a much cheaper option for policyholders who live in rural neighborhoods
• Electric has less expensive prices for drivers with a DUI

AAA or Electric: Which Company has the Cheapest Car Insurance?

So, you're considering switching to a new insurance policy. With so many ads from all sorts of companies offering huge savings, you're probably wondering exactly how much you might be able to save.

You might be considering AAA or Electric as potential options, but which one has cheaper rates for insurance?

Looking at the national average rates for both carriers, AAA has average rates that are around 15% a month more expensive than those from Electric.

However, Electric may not be the lowest or best option for every single driver out there. Car insurance companies use a variety of complex algorithms to determine premiums, so depending on where you live or how clean your driving record is (among a variety of other factors), you could see wildly different prices from the ones above.

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

AAA vs. Electric: Average Car Insurance Rates by State

AAA and Electric only compete against each other in one states, with Electric offering more affordable rates to the average driver in all of them. Missouri has the most noticable difference, where Electric prices are $217 less expensive than auto insurance rates at AAA.

But there's more to calculating insurance prices than just the state you live in. Read on to find out more.

Which is the Best Company For Young Drivers?

You might already know that teen drivers generally pay a lot more for auto insurance than any other group of drivers. That's because teen drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

But still, even with seemingly sky-high premiums, teen drivers can still find ways to save money. Just look at the table above -- where 18-year-old drivers who have Electric for their car insurance pay 15% less than those who use AAA.

But both carriers will offer you dramatically lower rates by the time you turn 25. Electric offers the steepest drop, with 25-year-olds paying less than half what 18-year-old drivers are charged. AAA's average prices drop almost 60% during that same period.

Which is the Best Company for Retired Drivers?

When it comes to auto insurance, patience and experience pay off, with drivers around retirement age paying some of the most affordable premiums you'll ever see.

So, which carrier offers the best prices to retired drivers? Electric gets the edge, with rates for drivers 65 and older $60 more affordable than the national average for AAA.

Which is the Best Company for Married Drivers?

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

For single drivers, the difference in average prices between these two carriers is significant, with Electric premiums coming in at about 15% less than AAA's. For married drivers, the advantage is clear again - Electric has the edge when it comes to average rates.

AAA or Electric: Average Rates by Gender

Men are statistically more likely than women to get into collisions and file an insurance claim, which means they'll typically end up paying more for auto insurance than women.

Men usually pay around $35 per month more than women with AAA, but with Electric, the difference is closer to $19 a month.

Looking at overall affordability, Electric comes out on top for both men and women, with average premiums 17% less for men and 13% cheaper for women.

AAA vs. Electric: 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, car insurance isn't the easiest topic to understand. Everyone needs insurance, but there are so many different terms and limits that it can be hard to find the right policy for you.

The two most common policies that drivers look at fall into two categories -- liability coverage (that covers property damage and bodily injury for other drivers if you cause a collision) and full coverage (which includes two additional coverages -- collision and comprehensive -- alongside liability coverage).

Looking specifically at state minimum liability limits, Electric has the edge, with average monthly prices coming in at $150. If you want a full coverage policy with the same state minimum limits, Electric again has the edge, with policies averaging about $383 per month to AAA's $459.

Is AAA or Electric Better for Drivers with Spotty Records?

It's no secret -- drivers with good records end up getting the best deals on their auto insurance. But that's not to say you can't save money if you don't have the best driving record, either.

It's no secret secret that speeding tickets and accidents lead to higher rates, but which company -- AAA or Electric -- has the cheapest premiums for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use AAA for their insurance can normally expect their monthly bill to go up around 29% after getting a speeding ticket. Electric policyholders can expect a less drastic increase of about 12%.

That being said, Electric tends to offer the best prices for drivers both with clean records and with a ticket. With Electric Insurance Company, drivers with a clean record can save around $5 a month and drivers with a speeding ticket can save about $62 per month.

Which Company is Best for Drivers After an Accident?

Both companies will raise rates pretty significantly if you get into an at-fault collision with AAA climbing by around 37%. Electric has a less extreme raise, but you can still expect to pay more than 10% more than you were prior to your first accident.

At the end of the day, drivers who use Electric end up with the cheaper prices after an accident, with average prices coming in at $236 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 collision or ticket when it comes to your car insurance bill. AAA drivers usually see a 47% climb in their auto insurance premiums after a DUI charge, while Electric will usually increase prices by about 46%.

But if you end up with a DUI charge and are looking for more affordable rates, Electric tends to be cheaper for the average driver, with monthly premiums coming in at around $385 to AAA's $403.

How does Credit Score Impact AAA and Electric Rates?

Did you know many car insurance carriers take your credit score into account when determining premiums? This isn't true for everyone (Massachusetts, for example, has banned the use of credit score as a car insurance factor) but it might come into play for a lot of drivers.

Insurance companies argue that those with poor credit scores are less likely to pay their bills on time every month, which raises the risk involved on their end, while the opposite is true for those with good credit.

Looking at AAA and Electric specifically, which carrier has the best rates for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have a great credit score, Electric will typically reward you the most. For drivers with "excellent" credit scores, Electric comes in nearly 14.59 less expensive. Drivers with "good" credit scores generally save about 14% with Electric compared to average prices from AAA.

Which Company is Best for Drivers with Bad Credit?

Electric typically offers lower rates than AAA when it comes to drivers with a below average credit score. Drivers with "fair" credit pay around 12% a month less with Electric compared to AAA, and those with "poor" scores usually save an average of about 21% a month.

Is AAA or Electric 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 your monthly premiums. That's because the fewer miles you drive, the less likely you are to be in an accident and file an insurance claim.

Electric tends to be the cheaper option for both remote workers and those taking short commutes. AAA's average prices for drivers with 6,000 annual miles come in more than $55 more expensive than Electric. Those who drive 12,000 miles yearly can expect to pay over $35 more with AAA over Electric.

AAA or Electric: Compare Rates for Urban, Suburban, and Rural Drivers

Where you live can have a considerable impact on your monthly car insurance payment. Generally, those who live in rural areas will pay less than policyholders in urban areas due to the small number of cars that are on the roads where they live.

Electric boasts the lowest average premiums in urban and suburban areas, while AAA wins in rural areas.

In urban areas, Electric's average rates are around $304 per month compared to AAA's $384. Drivers in suburban ZIP codes pay about $234 with Electric compared to AAA's $301 monthly. Those in rural areas can expect to pay around $256 per month with AAA compared to Electric's $262.

AAA vs. Electric Discounts

No matter why you might be in the market for a new auto insurance policy, you're always going to want to save as much money as you can. That's where insurance discounts comes into play.

But with what seems like a million different discounts out there, it can be difficult to nail down the carrier that has the most discounts for your unique driver profile and to find all the discounts you qualify for.

Luckily, we did the hard work for you and broke down all of the different discounts offered by both AAA and Electric so that you can see which company can save you the most money each month.

AAA knocks Electric out of the park when it comes to the sheer number of discounts available, offering 16 more discounts than Electric.

There are a couple discounts both carriers offer, but AAA also offers discounts for AAA, academic, distant student, and more.

On the other hand, Electric has a few proprietary discounts of their own for things like ABS discounts, electric vehicle discounts, marital status discounts, and more.

Final Thoughts: Is AAA or Electric Best for You?

You've seen the effect certain variables have on your auto insurance and the different discounts companies offer. But, at the end of the day, is AAA or Electric the best fit for you?

Electric might be best for you if....

• Your driving record contains an at-fault accident.
• You're looking for the best prices on liability only coverage.
• You and your spouse are buying car insurance together.

AAA might be best for you if...

• You're looking for the company with the most discounts.
• You live in a rural neighborhood.

Hopefully, this guide helps you get a good idea of the differences between AAA and Electric and that you can now make a more informed decision when it comes to your insurance.

At the end of the day, the sure-fire way to make sure you're getting the best deal on your car insurance policy is to compare quotes from multiple carriers, not just AAA and Electric. Luckily, Compare.com makes it easy for you to do just that. Simply enter your ZIP codes below and get multiple quotes from some of the best insurance companies in your area, all for free.

AAA vs. Electric FAQs

Is AAA or Electric cheaper?

Electric is the less expensive of the two carriers when looking at national average rates, with policies averaging $266 a month with Electric and $314 for AAA. Even so, that doesn't mean Electric will be the cheapest carrier for each driver, since there are a range of different factors (things like driving record, age, gender, etc.) that play a role in how much you pay.

Who is better, AAA or Electric?

Sadly, the real answer is "it depends.". Neither company is "better" for every policyholder -- it all boils down to your unique auto insurance profile.

Why do AAA and Electric offer me different rates?

Car insurance companies use many different variables when calculating the prices they charge. Factors such as gender, where your home is, your driving record, age, and sometimes even things like your credit score can all be used. Both AAA and Electric calculate premiums using different variables, so it's likely they'll offer different rates. The best way to determine which carrier is the most affordable for you is by comparing personalized quotes from lots of different carriers.

How do I know if AAA or Electric is right for me?

The only way to find the insurance company that's right for you is by getting quotes from several companies and finding the one best suited for your individual budget. Luckily, Compare.com does all the hard work for you. Just enter your ZIP code and you'll get quotes from dozens of your local top auto insurance carriers for free. That way, you can guarantee you're getting the best premium. And maybe you'll find that the best carrier for you isn't AAA or Electric at all, but another you hadn't even thought of!

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.