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

Quick Facts

• Looking at the national averages for insurance, AAA offers significantly more affordable premiums than Encompass
• AAA offers more affordable rates for residents of rural areas
• Encompass has less expensive premiums for drivers who have received a ticket within the last few years

AAA vs. Encompass: Which Company has the Cheapest Car Insurance?

So, you're considering switching your auto insurance. After all, you've seen ads from all sorts of companies offering sizable discounts. But exactly how much can you save by switching?

You might be considering AAA or Encompass for your next policy, but which one has cheaper prices for auto insurance?

Looking at nationwide averages, AAA has average rates that are about 35% per month more affordable than those from Encompass.

However, that doesn't necessarily mean AAA will be the cheaper option for every single driver. After all, insurance companies can offer drastically different rates to each driver depending on rating factors like your age, where you call home, your credit score, or even your driving record (among other things), so rates could differ drastically from person to person.

Wanting to know if AAA or Encompass is really the right carrier for you? Keep on reading to see how average premiums can change based on all of the factors we've mentioned above.

AAA or Encompass: Average Car Insurance Rates by State

AAA and Encompass compete against each other in seven states, with Encompass offering less expensive prices to the average driver in all of them. If you live in Louisiana, Nevada, or Wisconsin, AAA is the more affordable of the two carriers when looking at the overall average rates. Encompass is the less expensive option in Arizona, Illinois, Missouri, and Texas.

There's a lot more that goes into your car insurance payment than just the state you live in. Continue reading to see how other factors will affect your rates.

Which is the Best Company For Young Drivers?

You might already know that teen drivers generally pay a lot more for insurance than any other group of drivers out there on the road. Typically, that's because young, inexperienced drivers are statistically much more likely to get into an accident that results in an auto insurance claim, making them much riskier to insure.

But that doesn't mean that teen drivers have to just accept sky-high auto insurance prices. As you can see above, teens who use AAA save more than $450 a month compared to those who use Encompass.

That being said, both companies will drop rates once you turn 25. For example, average premiums for AAA policyholders decrease nearly 60% and Encompass's rates lower over 65% over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age normally enjoy some of the lowest car insurance premiums you'll ever find. After all, they've likely been driving for quite some time, which usually lowers their chances of accidents and other infractions that can increase prices.

When looking at AAA and Encompass specifically, which company is best for retired drivers? AAA gets the edge, with premiums for drivers 65 and older $97 cheaper than the national average for Encompass.

Which is the Best Company for Married Drivers?

You may not be aware, but auto insurance prices tend to be less expensive for married couples than they are for single policyholders. That's normally because married policyholders tend to own and insure multiple cars, which can often earn you a discount.

When it comes to relationship status, AAA is the clear winner for single drivers, with rates around $203 per month more affordable than Encompass, on average. The advantage for married drivers with AAA is also obvious, where drivers save about $85 a month.

AAA vs. Encompass: Average Rates by Gender

Men are statistically more likely than women to get into collisions and file an insurance claim. That means when it comes to insurance men will usually end up paying a little more.

On average, women see prices more than 10% per month less with AAA, and around 5% less with Encompass.

Looking at overall affordability, AAA offers the most affordable average premiums for both men and women, with average rates $146 less for men and $157 cheaper for women.

AAA or Encompass: 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 can be pretty complicated. There are so many different terms and limits that it can make it pretty confusing to find the right policy.

Even so, the most common policies that many drivers look at fall into two categories -- liability only (which covers the other party's property damage and injuries if you cause an accident) and full coverage (which includes two additional coverages -- comprehensive and collision -- in addition to what you get with liability).

If you're looking for state minimum liability insurance, AAA typically offers significantly cheaper premiums of $169 compared to Encompass's $302. When it comes to full coverage policies with similar limits, AAA again has the edge, with policies about $150 a month more affordable than Encompass, on average.

Is AAA or Encompass Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from auto insurance carriers offering great prices for good drivers, but that doesn't mean people with less-than-perfect driving records can't save money, too.

Tickets and accidents will most likely raise your rates, but is AAA or Encompass less expensive for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

AAA policyholders can expect their premiums to go up an average of $86 per month if they get a ticket, while Encompass generally raises rates around $61 a month, on average.

If you have a clean record, AAA tends to offer the best prices at about 6% cheaper, while Encompass has the edge for drivers with a speeding ticket.

Which Company is Best for Drivers After an Accident?

AAA drivers who get in a collision can expect to see their premiums climb by just under $150, while those who have insurance through Encompass will see around a $100 increase.

Overall, drivers who use Encompass end up with the cheaper prices after an accident, with monthly prices averaging $328 compared to AAA Insurance's $339.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge, you can expect some pretty significant increases in your monthly car insurance bill -- usually a lot more than an accident or ticket. For example, Encompass increases average rates by over $500 per month -- that's just under a 80% increase.

If you have a DUI on your record and are looking for more affordable prices, AAA tends to be the much more affordable option with average premiums of $403 a month compared to 1020 from Encompass.

How does Credit Score Impact AAA and Encompass Rates?

Did you know that many insurance companies take your credit score into account when calculating rates? This isn't always the case (for example, Michigan and Massachusetts are two states that ban the practice entirely), but it does affect several policyholders out there.

The reasoning auto insurance carriers use is that drivers with bad credit will be less likely to pay their bills on time; so typically, they'll be asked to pay more, while those with good credit will be rewarded with less expensive premiums.

So, which carrier offers the cheapest prices for policyholders with good, average, or poor credit?

Which Company is Best for Drivers with Good Credit?

If you have a solid credit score, you'll usually find a better deal with AAA. Drivers with "excellent" credit can save over 45% compared to Encompass, and those with "good" scores can also expect to see savings -- about $149 or 38% cheaper every month.

Which Company is Best for Drivers with Bad Credit?

AAA typically offers lower rates than Encompass when it comes to drivers with a below average credit score. Drivers with "fair" credit pay around $166 a month less with AAA compared to Encompass, and those with "poor" scores generally save an average of about $108 monthly.

Is AAA or Encompass Better for Drivers who Work from Home or Have Short Commutes?

Did you know that the amount of time you spend in your car have a large impact on your monthly premiums? Normally, the more miles you put on your vehicle each year, the more you can expect to pay for coverage.

For both drivers who put 6,000 miles on their vehicles each year, as well as those who average twice that figure, AAA offers less expensive prices than Encompass. Encompass average rates for drivers with 6,000 annual miles come in around $158 more expensive than AAA. Those who drive 12,000 miles yearly can expect to pay about $147 more with Encompass over AAA.

AAA vs. Encompass: Compare Rates for Urban, Suburban, and Rural Drivers

Where your home is can play a considerable role in how much you pay for insurance. Usually, 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.

AAA tends to offer the most affordable rates for drivers in all types of areas, no matter if they're urban, suburban, or rural.

Drivers in rural ZIP codes see the cheapest premiums from both companies, but AAA comes out on top with average rates around $256 per month. AAA also has cheaper average premiums for policyholders in urban and suburban ZIP codes -- a 31% and 31% per month respective difference when compared to Encompass drivers in similar areas.

AAA vs. Encompass Discounts

Regardless of why you might be in the market for a new car insurance policy, you're always going to want to save as much money as possible, and the best way to do that is by utilizing as many insurance discounts as you can.

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

In the table below, we've broken down all of the different discounts offered by both AAA and Encompass 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 knocks Encompass out of the park when it comes to the sheer number of discounts available, offering seven more discounts than Encompass.

There are a couple discounts both carriers offer, but AAA also offers AAA discounts, academic discounts, COVID-19 relief discount, and more that Encompass does not.

On the flip side, Encompass has a couple unique discounts of its own -- ABS discounts, DRL discounts, fire/fisher discounts, and more.

Final Thoughts: Is AAA or Encompass Best for You?

So, you've seen how different variables can affect your auto insurance prices. We've shown you all the discounts each company offers, too. That's all well and good, but at the end of the day, is AAA or Encompass the best carrier for you and your specific driver profile?

AAA might be best for you if....

• Your credit is below-average.
• You want basic car insurance coverage at the state minimum limits.
• You drive often but have a short commute.

Encompass might be best for you if...

• You have received a ticket within the last few years.
• Your driving record contains an at-fault accident.

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

But, at the end of the day, there's only one way to know for sure that you're getting the best possible deal on insurance -- comparing quotes from multiple companies, not just AAA and Encompass. Luckily, Compare.com does all the hard work for you. Just enter your ZIP code below and get multiple quotes from some of the best car insurance carriers in your area, all for free.

AAA vs. Encompass FAQs

Is AAA or Encompass cheaper?

Looking just at the national average premiums, AAA is the more affordable of the two companies, offering average rates of $314 a month compared to $466 for Encompass. But AAA won't necessarily be the most affordable carrier for every driver, since there are a bunch of different factors (things like gender, age, driving record, etc.) that play a role in how much you pay.

Who is better, AAA or Encompass?

Sadly, the answer truly is "it depends.". One company is not necessarily "better" for everyone -- it all depends on what your unique auto insurance profile looks like. For example, Encompass offers cheaper prices for policyholders with an at-fault collision on their record, while AAA is more affordable for drivers who have less-than-stellar credit scores.

Why do AAA and Encompass offer me different rates?

Insurance carriers take a look at quite a few different variables when determining the rates they charge drivers. Factors like where you live, gender, where you call home, age, and sometimes even things like your credit score can all be taken into consideration. Both AAA and Encompass calculate prices using different formulas, so each one will most likely offer different premiums. The only real way to see which carrier is the cheapest for you is by comparing personalized quotes from many different companies.

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

The only way to find the car insurance company that's right for you is by getting quotes from a handful of 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. That way, you can guarantee you're getting the lowest price. And who knows, the best carrier for you might not be AAA or Encompass at all!

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.