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

Quick Facts

• Based on national averages for auto insurance, GEICO offers significantly more affordable prices than AAA
• AAA may help you save more money -- they offer more discounts than GEICO
• GEICO tends to be a much cheaper option for policyholders who are looking to purchase insurance with a spouse

AAA or GEICO: 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 large savings, you're probably wondering exactly how much you might be able to save.

You've maybe even narrowed it down to AAA or GEICO, but between the two, which one will offer you less expensive premiums?

As you can see, GEICO has average rates that are around 40% a month cheaper than those from AAA when looking at the national average rates for car insurance.

Even so, that doesn't mean GEICO will necessarily be less expensive than AAA for each driver. Insurance carriers vary their prices depending on things like how clean your driving record is, how old you are, where you live, how good your credit score is, and a ton of other factors. So, at the end of the day, rates from every carrier will differ quite a bit from person to person.

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

AAA vs. GEICO: Average Car Insurance Rates by State

AAA and GEICO compete against each other in 10 states, with GEICO offering more affordable rates to the average driver in all of them. If you live in, undefined is the less expensive of the two companies when looking at the overall average prices, but GEICO is the cheaper option in most of the others.

There's a lot more that goes into your auto insurance bill than just your home state. Keep reading to learn more.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- usually pay a lot for car insurance compared to older drivers. It's because teen drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

However, that doesn't mean teen drivers can't still save money on their insurance. Just look at the table above -- where 18-year-old drivers who have GEICO for their auto insurance pay over 45% less than those who use AAA.

But both carriers will offer you dramatically lower premiums once you turn 25. For example, average rates for AAA policyholders drop about $400 and GEICO's prices decrease more than $200 over that time.

Which is the Best Company for Retired Drivers?

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

But who has the best rates for retired drivers between AAA and GEICO? GEICO gets the edge here, with average prices coming in at around $148 a month compared to AAA's $238.

Which is the Best Company for Married Drivers?

You may not be aware, but car insurance premiums tend to be cheaper for married policyholders than they are for single policyholders. This usually boils down to married drivers having multiple vehicles on their policy -- something a lot of auto insurance companies will reward with discounts.

For single drivers, the difference in average prices between these two carriers is significant, with GEICO rates coming in at about half of AAA's. The advantage is also clear for married couples - GEICO offers the lowest average premiums.

AAA or GEICO: Average Rates by Gender

Did you know women tend to pay less for insurance than men? That's because men are more likely to get into collisions and get tickets, which raises the chances of filing a claim with insurance.

Typically, men see prices over 10% per month higher with AAA, but with GEICO, the difference is closer to 4% a month.

Looking at overall affordability, GEICO comes out as the most affordable option for both genders, with average rates 43% less for men and 39% cheaper for women.

AAA vs. GEICO: 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 car insurance can be a complicated subject for most people. There are so many different terms and limits that it can make it pretty confusing to find the right policy for you.

The two most common policies end up falling into two different types of coverage -- liability coverage (that covers property damage and bodily injury for other drivers and their passengers if you cause a collision) and full coverage (which typically refers to having collision and comprehensive coverages in addition to what you get with liability).

Looking specifically at state minimum limits for liability insurance, GEICO has the significant edge, with average monthly premiums coming in at $101. If you want a full coverage policy with the same state minimum limits, GEICO again has the edge, with policies averaging around $269 per month to AAA's $459.

Is AAA or GEICO 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.

Collisions and speeding tickets will most likely raise your prices, but is AAA or GEICO more affordable for drivers with less-than-perfect 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 about 29% after getting a speeding ticket. GEICO policyholders can expect a less drastic increase of around 23%.

That being said, GEICO tends to offer the best prices for both drivers who have clean records and those with a recent ticket, offering rates that are $98 and $149 cheaper, respectively, compared to AAA Insurance.

Which Company is Best for Drivers After an Accident?

Both companies will raise premiums pretty significantly if you get into an at-fault collision with AAA increasing by about 37%. GEICO has a less extreme increase, but you can still expect to pay nearly 45% more than you were prior to your first accident.

At the end of the day, the less expensive rates come from GEICO, with average premiums coming in at $200 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 -- generally a lot more than an accident or speeding ticket. On average, AAA will raise your prices around 47% after a DUI, while GEICO's average premiums climb by just under 60%.

How does Credit Score Impact AAA and GEICO Rates?

You may not have known, but your credit score can come into play when carriers determine your monthly bill. This isn't true for everyone (Hawaii, for example, has banned the use of credit score as a car insurance factor) but it will come into play for several drivers.

Auto insurance companies argue that someone with good credit is more likely to pay their bills on time, which makes them less risky to insure. Because of that, policyholders with good credit will often be rewarded with more affordable rates.

Looking at AAA and GEICO specifically, which company has the cheapest prices for drivers at different credit levels?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

Is AAA or GEICO 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 car insurance cost. Usually, those who drive fewer miles will end up with cheaper rates since there's less of a chance of causing a collision and filing an insurance claim.

For both remote workers and those taking short commutes, GEICO offers less expensive prices than AAA. AAA's average premiums for drivers with 6,000 annual miles come in more than 40% more expensive than GEICO. Those who drive 12,000 miles each year can expect to pay over 40% more with AAA over GEICO.

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

Where you live can have a considerable impact on your monthly auto insurance payment. Generally, those who live in rural areas will pay less than policyholders in urban areas since there are a lot fewer cars on the roads where they live.

When comparing these two carriers side-by-side, GEICO normally comes out as the most affordable option for drivers in every type of area, no matter if it's urban, suburban, or rural.

For drivers in urban ZIP codes, GEICO's average premiums are about 45% less than AAA Insurance. People who live in suburban areas pay around 39% less with GEICO compared to AAA. Those in rural areas can expect to save about 38% with GEICO compared to AAA.

AAA vs. GEICO Discounts

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

But where do you even start? With what seems like a million different discounts out there, it may be hard to find all the ones you can take advantage of.

Luckily, we did the hard work for you and looked at all of the different discounts AAA and GEICO offer their customers so that you can find the carrier that has the most discounts and, therefore, the largest savings.

Looking at the total number of discounts, AAA comes out ahead with 33 discounts to GEICO's 28.

A couple of those are overlapping for things like COVID-19 relief discount, distant student discounts, discounts for getting driver training, and discounts for being a good driver. AAA also offers discounts for AAA, academic, advance quote, and more.

On the other hand, GEICO has a few proprietary discounts of their own for things like ABS discounts, commercial drivers license discounts, deployed driver discounts, and more.

Final Thoughts: Is AAA or GEICO Best for You?

You've seen the role certain variables have on your auto insurance and the different discounts companies offer. That's all well and good, but at the end of the day, which insurance company is the best one for you and your specific needs?

GEICO might be best for you if....

• You have an at-fault collision on your record.
• You're worried about the impact your credit score will have on your rates.
• You drive fewer than 12,000 miles annually.

AAA might be best for you if...

• You want to save extra money with discounts.

Hopefully, this guide has ben a valuable resource as you compare AAA and GEICO and that it aids in making a more informed decision about your car 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 a handful of carriers, not just AAA and GEICO. Luckily, sites like Compare.com make it easy for you to do just that. Simply enter your ZIP codes below and get multiple free quotes from some of the best car insurance companies in your area, all in just a few minutes.

AAA vs. GEICO FAQs

Is AAA or GEICO cheaper?

GEICO is the more affordable of the two carriers when looking at national average prices, with policies averaging $185 a month with GEICO and $314 for AAA. However, that doesn't mean GEICO will be the cheapest carrier for every policyholder, since there are a bunch of different factors (things like age, gender, driving record, etc.) that play a role in how much you pay.

Who is better, AAA or GEICO?

Sadly, the real answer is "it depends.". No single company is necessarily "better" for everyone -- it all boils down to your unique insurance profile.

Why do AAA and GEICO offer me different rates?

Auto insurance companies use many different variables when determining the premiums they charge. Factors such as gender, age, where your home is, your driving record, and sometimes even things like your credit score can all come into play. Both AAA and GEICO calculate rates using different variables, so it's likely they'll offer different prices. The best way to determine which carrier is the lowest for you is by comparing personalized quotes from multiple different carriers.

How do I know if AAA or GEICO 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 makes it easy for you to do just that. Just enter your information once 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 GEICO 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.