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

Quick Facts

• Based on national averages for car insurance, Equity offers significantly less expensive premiums than AAA
• AAA may help you save more money -- they offer more discounts than Equity Insurance Company
• Equity tends to be a much cheaper option for drivers who have below-average credit

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

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

You might have narrowed it down to AAA or Equity as potential options, but which company will save you the most?

Looking at the national average rates for both carriers, Equity has average rates that are around 45% a month more affordable than those from AAA.

However, Equity may not be the cheapest or best option for each driver out there. Auto insurance companies use a variety of complex algorithms to determine rates, so depending on how good your credit score is or where you live (among a bunch of other factors), you could see wildly different premiums from the ones above.

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

AAA vs. Equity: Average Car Insurance Rates by State

AAA and Equity only compete against each other in one states, with Equity offering less expensive rates to the average driver in all of them. Arkansas has the most noticable difference, where Equity prices are $25 cheaper than 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 carriers calculate your premiums. Continue reading to learn more about how other variables will affect your rates.

Which is the Best Company For Young Drivers?

You might already know that teen drivers typically pay a lot more for insurance than any other group of drivers. It's because teen 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 rates. For example, 18-year-old drivers pay an average of almost 50% less per month by choosing Equity over AAA.

But with both companies, you'll see your prices reduce significantly by the time you turn 25. For example, average premiums for AAA policyholders lower nearly 60% and Equity's prices drop almost 60% over that time.

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 lowest premiums you can find.

But who has the best rates for retired drivers between AAA and Equity? Equity gets the edge, with prices for drivers 65 and older $110 more affordable than the national average for AAA.

Which is the Best Company for Married Drivers?

Married drivers tend to get slightly less expensive car insurance rates than single drivers. That's because policies for married couples generally cover several vehicles, which a lot of carriers will give you a discount for.

For single policyholders, the difference in average premiums between these two companies is significant, with Equity prices coming in at about half of AAA's. The advantage for married policyholders with Equity is also obvious, where drivers save around $100 a month.

AAA or Equity: Average Rates by Gender

Men are statistically more likely than women to get into accidents and get speeding tickets, which means they'll normally end up paying more for auto insurance than women.

On average, women see rates over 10% per month less with AAA, and more than 10% less with Equity when compared to their male counterparts.

Looking at overall affordability, Equity offers the most affordable average premiums for both men and women, with average prices 47% less for men and 48% cheaper for women.

AAA vs. Equity: 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.

It's no secret that insurance can be a complicated subject for most people. Everyone needs auto insurance, but there are so many different limits and terms that it can be hard to find the right policy for you.

That being said, the most common policies that drivers look at fall into two categories -- liability coverage (which provides bodily injury and property damage coverage for other drivers if you cause a collision) and full coverage (which includes two additional coverages -- collision and comprehensive -- alongside what you get with a liability policy).

Looking specifically at state minimum limits for liability insurance, Equity has the significant edge, with average monthly rates coming in at $67. If you want a full coverage policy with the same state minimum limits, Equity again has the edge, with policies averaging about $262 a month to AAA's $459.

Is AAA or Equity Better for Drivers with Spotty Records?

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

At-fault collisions and speeding tickets will most likely raise your rates, but is AAA or Equity cheaper for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use AAA for their car insurance can usually expect their monthly bill to go up around 29% after getting a speeding ticket. Equity policyholders can expect a less drastic increase of about 4%.

However, Equity has less expensive premiums for drivers in both categories. With Equity Insurance Company, drivers with a clean record can save around $59 per month and drivers with a ticket can save about $139 a month.

Which Company is Best for Drivers After an Accident?

AAA drivers who get in an accident can expect to see their prices rise by over 35%, while those who have insurance through Equity will see around a 15% increase.

At the end of the day, drivers who use Equity end up with the cheaper prices after an accident, with average premiums coming in at $179 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 auto insurance bill -- typically a lot more than a collision or speeding ticket. On average, AAA will raise your prices about 47% after a DUI, while Equity's average rates climb by 7%.

But if you end up with a DUI charge and are looking for more affordable premiums, Equity tends to be more affordable for the average driver, with monthly premiums coming in at around $166 to AAA's $403.

How does Credit Score Impact AAA and Equity Rates?

Did you know many insurance companies take your credit score into account when determining prices? This isn't true for everyone (Michigan, for example, has banned the use of credit score as an insurance factor) but it will come into play for quite a few policyholders.

Car insurance carriers argue that someone with bad credit is less likely to pay their bills on time, which makes them riskier to insure. Because of that, drivers with bad credit will often be forced to pay more.

So, which company offers the cheapest rates for policyholders with poor, average, or good credit?

Which Company is Best for Drivers with Good Credit?

If you have a great credit score, Equity will normally reward you the most. For drivers with "excellent" credit scores, Equity comes in more than 10.81 cheaper. Drivers with "good" credit scores generally save about 33% with Equity compared to average premiums from AAA.

Which Company is Best for Drivers with Bad Credit?

Equity typically offers lower prices than AAA when it comes to drivers with less-than-stellar credit. Drivers with "fair" credit pay around 46% per month less with Equity compared to AAA, and those with "poor" scores usually save an average of about 69% monthly.

Is AAA or Equity 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 how much auto insurance companies will charge for coverage? Typically, those who drive fewer miles will end up with more affordable rates since there's less of a chance of causing an accident and filing an insurance claim.

As you can see in the table above, annual mileage doesn't have much of an impact on how much Equity charges. However, there's a small difference in monthly prices for AAA, with drivers who put 6,000 miles on their car yearly paying around $13 less every month compared to those who drive 12,000 miles annually. Still, for drivers in both categories, Equity is the less expensive carrier.

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

Where your home is can have a pretty big impact on your monthly insurance cost. Usually, those who live in rural areas will pay less than policyholders in urban areas due to the small number of vehicles that are on the roads where they live.

Equity boasts the cheapest average premiums for drivers in all areas, regardless of if they're urban, suburban, or rural.

For drivers in urban ZIP codes, Equity Insurance Company's average prices are about $192 less than AAA Insurance. People who live in suburban areas pay around $143 less with Equity compared to AAA. Those in rural areas can expect to save about $113 with Equity compared to AAA.

AAA vs. Equity Discounts

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

But with what seems like a million different discounts out there, it can be challenging 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 compared all of the different discounts offered by AAA and Equity so that you can see which carrier offers the most discounts and see which ones you might be able to take advantage of.

AAA blows Equity away when it comes to the sheer amount of discounts available, offering 23 more discounts than Equity.

Both carriers offer quite a few of the same discounts -- like discounts for being a good student, group discounts, and paid in full discounts -- but AAA also offers discounts for AAA, academic, advance quote, and more.

On the other hand, Equity has a few proprietary discounts of their own like agency transfer discounts and education discounts.

Final Thoughts: Is AAA or Equity Best for You?

So, we've broken down the average rates for many of the factors insurance companies look at, and we've shown you all the discounts each company offers. But, when it comes down to it, which insurance carrier is the best one for you and your specific profile and needs?

Equity might be best for you if....

• Your driving record includes a DUI charge.
• You're looking for the best prices on liability only coverage.
• You're of retirement age and want to take advantage of lower rates.

AAA might be best for you if...

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

Hopefully, this guide helps you get a good idea of the differences between AAA and Equity. 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 sure-fire way to make sure you're getting the best deal on your car insurance policy is to compare quotes from several carriers, not just AAA and Equity. Luckily, sites like Compare.com make it easy for you to do just that. Just enter your ZIP code below and get free quotes from dozens of top auto insurance companies in your area, all in just a few minutes.

AAA vs. Equity FAQs

Is AAA or Equity cheaper?

Equity is the cheaper of the two carriers when looking at national average premiums, with policies averaging $165 a month with Equity and $314 for AAA. That being said, that doesn't mean Equity will be the lowest carrier for each driver, since there are many different variables (things like age, gender, driving record, etc.) that play a role in how much you pay.

Who is better, AAA or Equity?

Sadly, the real answer is "it depends.". Neither company is necessarily "better" for every policyholder -- it all depends on what your unique insurance profile looks like.

Why do AAA and Equity offer me different rates?

Car insurance companies use many different factors when calculating the rates they charge. Variables such as your driving record, age, where you live, gender, and sometimes even things like your credit score can all be taken into consideration. Both AAA and Equity calculate prices differently, so it's likely they'll offer different premiums. 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 Equity is right for me?

The only way to find the insurance company that's right for you is by getting quotes from multiple 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 car insurance carriers for free. With those, you can guarantee you're getting the best price. And maybe you'll find that the best carrier for you isn't AAA or Equity 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.