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

Quick Facts

• In general, Iowa Mutual offers significantly more affordable prices than AAA
• AAA may help you save more money -- they offer more discounts than Iowa Mutual
• Iowa Mutual has cheaper rates for policyholders who haven't received any speeding tickets or been in a collision in the last few years

AAA or Iowa Mutual: Which Company has the Cheapest Car Insurance?

So, you're thinking about switching to a new insurance policy. You've probably seen commercials and billboards from companies offering huge savings, but exactly how much money can you save by switching?

You might be considering AAA or Iowa Mutual, but which carrier will offer you less expensive prices?

Looking at the national average rates for both carriers, AAA has average rates that are around 35% a month more expensive than those from Iowa Mutual.

That being said, Iowa Mutual may not be the most affordable or best option for every single driver out there. Auto insurance companies vary their rates depending on things like how clean your driving record is, where you live, how good your credit score is, how old you are, and all sorts of other factors, so premiums could change drastically from person to person.

So, if you want to find out which of AAA or Iowa Mutual is really the best for you, keep reading to see average rates for each carrier broken down by several different rate factors.

AAA vs. Iowa Mutual: Average Car Insurance Rates by State

AAA and Iowa Mutual only compete against each other in Nebraska, where Iowa Mutual offers the cheaper average premiums. Iowa Mutual drivers tend to pay about $135 per month less on average compared to drivers who use AAA for their car insurance.

That being said, there are plenty of other factors that go into your auto insurance payment than just where you live. Read on to learn more.

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. That's because teen drivers are statistically much more likely to get into accidents since they have less experience on the roads.

But still, even with seemingly sky-high prices, teen drivers can still find ways to save money. As you can see above, teens who use Iowa Mutual save almost 30% a month compared to those who use AAA.

But with both carriers, you'll see your premiums lower significantly by the time you turn 25. For example, average prices for AAA policyholders decrease about $400 and Iowa Mutual's rates drop over $300 over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age typically enjoy some of the lowest auto insurance premiums you'll ever see. After all, they've likely been driving for quite some time, which usually decreases their chances of collisions and other infractions that can raise prices.

When looking at AAA and Iowa Mutual specifically, which company is best for retired drivers? Iowa Mutual gets the edge, with rates for drivers 65 and older $92 more affordable than the national average for AAA.

Which is the Best Company for Married Drivers?

Did you know that insurance prices are normally less expensive for married policyholders than they are for single policyholders? This usually boils down to married drivers having several vehicles on their policy -- something lots of car insurance companies will reward with discounts.

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

AAA or Iowa Mutual: Average Rates by Gender

Men are statistically more likely than women to cause a collision and get into accidents. That means when it comes to auto insurance men will typically end up paying a little more.

Women normally pay around $35 per month less than men with AAA, and nearly $35 with Iowa Mutual.

Looking at overall affordability, Iowa Mutual comes out on top for both men and women, with average rates $103 less for men and $102 cheaper for women.

AAA vs. Iowa Mutual: 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.

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

However, most 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 an accident) and full coverage (which includes two additional coverages -- collision and comprehensive -- in addition to what you get with a liability policy).

Looking specifically at state minimum liability insurance, Iowa Mutual has the significant edge, with average monthly premiums coming in at $94. If you want a full coverage policy with the same state minimum limits, Iowa Mutual again has the edge, with policies averaging about $328 a month to AAA's $459.

Is AAA or Iowa Mutual Better for Drivers with Spotty Records?

It's no secret -- drivers with good records end up getting the best deals on their 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 at-fault accidents lead to higher prices, but which carrier -- AAA or Iowa Mutual -- has the most affordable rates for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use AAA for their auto insurance can generally expect their monthly bill to go up around 29% after getting a speeding ticket. Iowa Mutual policyholders can expect a less drastic increase of about 6%.

Even so, Iowa Mutual tends to offer the best prices for drivers both with a ticket and with a clean record, offering premiums that are $49 and $124 cheaper, respectively, compared to AAA Insurance.

Which Company is Best for Drivers After an Accident?

Both companies will increase rates pretty significantly if you get into an at-fault collision with AAA climbing by around 37%. Iowa Mutual has a less extreme increase, but you can still expect to pay nearly 15% more than you were prior to your first accident.

At the end of the day, drivers who use Iowa Mutual end up with the cheaper prices after an accident, with average prices coming in at $191 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 speeding ticket when it comes to your car insurance bill. For example, AAA increases average premiums by nearly $200 per month -- that's more than a 45% increase.

But if you end up with a DUI charge and are looking for more affordable prices, Iowa Mutual tends to be less expensive for the average driver, with monthly premiums coming in at about $315 to AAA's $403.

How does Credit Score Impact AAA and Iowa Mutual Rates?

You may not realized it, but your credit score can come into play when carriers determine your monthly bill. This isn't true for everyone (for example, Hawaii and California are two states that ban the practice entirely), but it will come into play for several 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 usually be forced to pay more.

Looking at AAA and Iowa Mutual specifically, which one has the best rates for drivers at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have solid credit, Iowa Mutual will generally reward you the most. For policyholders with "excellent" credit scores, Iowa Mutual comes in over 11.89 cheaper. Drivers with "good" credit scores usually save around 30% with Iowa Mutual compared to average premiums from AAA.

Which Company is Best for Drivers with Bad Credit?

Iowa Mutual typically offers lower rates than AAA when it comes to drivers with less-than-perfect credit. Drivers with "fair" credit pay about 29% a month less with Iowa Mutual compared to AAA, and those with "poor" scores normally save an average of around 46% a month.

Is AAA or Iowa Mutual 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 car insurance carriers will charge for coverage? Typically, those who drive less will end up with more affordable prices since there's less of a chance of causing a collision 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 Iowa Mutual charges. However, there's a small difference in monthly premiums for AAA, with policyholders who drive the least paying about $13 less every month compared to those who drive 12,000 miles yearly. Still, for drivers in both categories, Iowa Mutual is the cheaper company.

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

We've already mentioned how your home state can play a role in how much you pay for auto insurance, but the type of area you live in can have a sizable impact as well. Generally, those who live in rural areas will pay less than drivers in urban areas because of the small number of cars that are on the roads where they live.

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

Those in rural areas can expect to save around $69 with Iowa Mutual compared to AAA. People who live in suburban areas pay about $102 less with Iowa Mutual compared to AAA. For policyholders in urban ZIP codes, Iowa Mutual's average prices are around $136 less than AAA Insurance.

AAA vs. Iowa Mutual Discounts

No matter why you might be in the market for a new insurance policy, you're always going to want to save as much money as you can, and the best way to do that is by taking advantage of as many car insurance discounts as possible.

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

Luckily, we did the hard work for you and broke down all of the different discounts offered by both AAA and Iowa Mutual 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 Iowa Mutual away when it comes to the sheer amount of discounts available, offering 33 different discounts to Iowa Mutual's 12.

A couple of those are overlapping for things like discounts for being a defensive driver, discounts for being a good student, hybrid vehicle discounts, and multi-policy discounts. AAA also offers discounts for AAA, academic, advance quote, and more.

On the other hand, Iowa Mutual has a few proprietary discounts of their own like ABS discounts and claim free discounts.

Final Thoughts: Is AAA or Iowa Mutual Best for You?

So, you've seen how different variables can affect your auto insurance rates. We've shown you all the discounts each company offers, too. But, at the end of the day, is AAA or Iowa Mutual the best company for you and your specific profile and needs?

Iowa Mutual might be best for you if....

• You have a clean record.
• You're looking for the best premiums 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 carrier with the most discounts.

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

At the end of the day, the sure-fire way to make sure you're getting the best deal on your insurance policy is to compare quotes from a handful of companies, not just AAA and Iowa Mutual. Luckily, sites like Compare.com do all the hard work for you. 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.

AAA vs. Iowa Mutual FAQs

Is AAA or Iowa Mutual cheaper?

Iowa Mutual is the more affordable of the two companies when looking at national average premiums, with policies averaging $211 per month with Iowa Mutual and $314 for AAA. But that doesn't mean Iowa Mutual will be the lowest company for each policyholder, since there are multiple different factors that come into play when it comes to your insurance bill.

Who is better, AAA or Iowa Mutual?

Unfortunately, the real answer is "it depends.". No one carrier is necessarily "better" for every policyholder -- it all comes down to what your unique auto insurance profile looks like.

Why do AAA and Iowa Mutual offer me different rates?

Car insurance carriers use quite a few different variables when determining the prices they charge. Factors such as where you call home, age, where your home is, gender, and sometimes even things like your credit score can all be taken into consideration. Both AAA and Iowa Mutual calculate premiums using different variables, so it's likely they'll offer different prices. The best way to determine which company is the cheapest for you is by comparing personalized quotes from a bunch of different companies.

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

The only way to find the auto insurance carrier that's right for you is by getting quotes from multiple carriers and finding the one best suited for your individual budget. Luckily, Compare.com does all the hard work for you. Just enter your area information and you'll get quotes from dozens of your local top car insurance companies for free. That way, you can guarantee you're getting the most affordable premium. And maybe you'll find that the best company for you isn't AAA or Iowa Mutual 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.