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

Quick Facts

• Based on national averages for car insurance, Kemper offers significantly cheaper rates than AAA
• AAA may help you save more money -- they offer more discounts than Kemper
• Kemper has more affordable prices for drivers who have a speeding ticket on their driving record

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

So, you're thinking about switching to a new insurance policy. After all, you've seen ads from all sorts of companies offering large savings. But exactly how much can you save by switching?

You've maybe even narrowed it down to AAA or Kemper as your top options, but between the two, which carrier will offer you less expensive rates?

Looking at nationwide averages, AAA is quite a bit more expensive than Kemper, with premiums averaging $314 a month compared to just $235 with Kemper.

Even so, that doesn't mean Kemper will necessarily be more affordable than AAA for each driver. Auto insurance carriers use tons of complex algorithms to determine prices, so depending on how clean your driving record is or where you live (among numerous other factors), you could see wildly different premiums from the ones above.

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

AAA vs. Kemper: Average Car Insurance Rates by State

AAA and Kemper compete against each other in four states, with Kemper offering cheaper prices to the average driver in all of them. California has the most noticable difference, where Kemper rates are $75 less expensive than car insurance premiums at AAA.

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?

Teen drivers will almost always have the most expensive insurance prices of any other group of drivers out there on the road. That's typically because teen drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

That being said, that doesn't mean that teen drivers have to just accept sky-high auto insurance premiums. For example, 18-year-old drivers pay an average of almost 30% less per month by choosing Kemper over AAA.

But with both companies, you'll see your rates drop significantly by the time drivers turn 25. Kemper offers the steepest drop, with 25-year-olds paying less than half what 18-year-old drivers are charged. AAA's average prices decrease nearly 60% during that same period.

Which is the Best Company for Retired Drivers?

When it comes to car insurance, patience and experience pay off, with drivers around retirement age paying some of the lowest premiums out there.

When looking at AAA and Kemper specifically, which company is best for retired drivers? Kemper gets the edge, with prices for drivers 65 and older $59 cheaper than the national average for AAA.

Which is the Best Company for Married Drivers?

Did you know that insurance rates are normally more expensive for those who are single than they are for married couples? That's because policies for married drivers generally cover several vehicles, which a lot of carriers will give you a discount for.

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

AAA or Kemper: Average Rates by Gender

You may not know, but auto insurance is usually more expensive for men than for women. This is because men are statistically more likely than women to get into a collision or get pulled over for speeding, which leads to increased risk for insurers and, therefore, higher prices.

Men generally pay around $35 a month more than women with AAA, and about $19 more with Kemper.

Looking at the data for each carrier specifically, Kemper comes out on top for both men and women, with average premiums $87 less for men and $72 cheaper for women.

AAA vs. Kemper: 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. Everyone needs 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 end up falling into two different types of coverage -- 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 liability coverage).

Looking specifically at state minimum liability insurance, Kemper has the edge, with average monthly rates coming in at $139. If you want a full coverage policy with the same state minimum limits, Kemper again has the edge, with policies averaging around $331 per month to AAA's $459.

Is AAA or Kemper Better for Drivers with Spotty Records?

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

You'll probably end up paying more with collisions and speeding tickets on your record, but which of these two carriers offers the most affordable prices to drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use AAA for their auto insurance can typically expect their monthly bill to go up about 29% after getting a speeding ticket. Kemper policyholders can expect a less drastic increase of around 21%.

Even so, Kemper is usually the more affordable option for drivers both with clean records and with a ticket. With Kemper, drivers with a clean record can save about $39 a month and drivers with a speeding ticket can save around $80 per month.

Which Company is Best for Drivers After an Accident?

AAA drivers who get in a collision can expect to see their rates increase by over 35%, while those who have insurance through Kemper will see about a 35% increase.

At the end of the day, Kemper offers the lowest premiums for drivers with an at-fault collision on their records, with average rates coming in at $259 compared to AAA Insurance's $339.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge on your record, it's probably going to cost you more than a simple ticket or even an accident. For example, AAA increases average premiums by nearly $200 a month -- that's more than a 45% increase.

But if you end up with a DUI charge and are looking for more affordable prices, Kemper tends to be less expensive for the average driver, with monthly premiums coming in at around $287 to AAA's $403.

How does Credit Score Impact AAA and Kemper Rates?

In many cases, your credit score can be used as one of the variables to calculate your monthly insurance premiums. This isn't true for everyone (for example, Michigan and California are two states that ban the practice entirely), but it does affect several policyholders out there.

The reasoning auto insurance companies use is that drivers with good credit will be more likely to pay their bills on time; so they'll reward them with cheaper rates, while those with poor credit will normally be forced to pay more.

Looking at AAA and Kemper specifically, which company has the best prices for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have a solid credit score, Kemper will generally reward you the most. For drivers with "excellent" credit scores, Kemper comes in NaN more affordable. Drivers with "good" credit scores typically save about 16% with Kemper compared to average premiums from AAA.

Which Company is Best for Drivers with Bad Credit?

Kemper typically offers lower rates than AAA when it comes to drivers with less-than-perfect credit. Drivers with "fair" credit pay around 21% per month less with Kemper compared to AAA, and those with "poor" scores usually save an average of about 40% monthly.

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

How much you drive can have a considerable impact on how much car insurance carriers will charge for coverage. Normally, the more milage you put on your car, the more you can expect to pay for insurance.

For both remote workers and those taking short commutes, Kemper offers cheaper prices than AAA. Kemper's average rates for drivers with 6,000 annual miles come in around 24% less expensive than AAA. Those who drive 12,000 miles annually can expect to pay about 27% less with Kemper over AAA.

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

Where you call home can play a sizable role in how much you pay for car insurance. Usually, policyholders who live in heavily-populated urban areas will pay quite a bit more than rural drivers due to the number of vehicles that are on the roads where they live.

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

Those in rural areas can expect to save around $74 with Kemper compared to AAA. People who live in suburban areas pay about $75 less with Kemper compared to AAA. For policyholders in urban ZIP codes, Kemper's average rates are around $88 less than AAA Insurance.

AAA vs. Kemper Discounts

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

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 qualify for.

Luckily, we did the hard work for you and broke down all of the different discounts offered by both AAA and Kemper 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 Kemper away when it comes to the sheer amount of discounts available, offering nine more discounts than Kemper.

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

On the other hand, Kemper has a few proprietary discounts of their own for things like ABS discounts, continuous insurance discounts, DRL discounts, and more.

Final Thoughts: Is AAA or Kemper Best for You?

You've seen the role certain factors have on your insurance and the different discounts companies offer. But, when it comes down to it, which company is the best one for you, your vehicle, and your wallet?

Kemper might be best for you if....

• You don't have any speeding tickets, DUIs, or at-fault accidents on your record.
• You want the most robust protection via a "full coverage" policy.
• You live in a rural neighborhood.

AAA might be best for you if...

• You're looking for discounts -- Aaa has the most.

Hopefully, this guide helps you get a good idea of the differences between AAA and Kemper and that you can now make a more informed 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 car insurance -- comparing quotes from a handful of carriers, not just AAA and Kemper. Luckily, Compare.com makes it easy for you to do just that. Simply enter your ZIP codes below and get multiple free quotes from some of the best insurance companies in your area, all in just a few minutes.

AAA vs. Kemper FAQs

Is AAA or Kemper cheaper?

Kemper is the more affordable of the two carriers when looking at national average prices, with policies averaging $235 a month with Kemper and $314 for AAA. That being said, that doesn't mean Kemper will be the lowest carrier for every driver, since there are lots of different variables that come into play when it comes to your auto insurance bill.

Who is better, AAA or Kemper?

Unfortunately, the real answer is "it depends.". No single company is necessarily "better" for each policyholder -- it all comes down to what your unique insurance profile looks like.

Why do AAA and Kemper offer me different rates?

Car insurance companies use many different factors when determining the rates they charge. Things like your driving record, gender, age, where your home is, and sometimes even things like your credit score can all be used. Both AAA and Kemper use different formulas, 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 many different carriers.

How do I know if AAA or Kemper 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, sites like Compare.com do all the hard work for you. Just enter your area information 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 rate. And maybe you'll find that the best carrier for you isn't AAA or Kemper 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.