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

Quick Facts

• Based on national averages for insurance, Equity offers cheaper premiums than GEICO
• Equity tends to be a much more affordable option for policyholders whose driving record contains an at-fault collision
• GEICO offers more affordable rates for policyholders who have a clean record

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

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

You might have narrowed it down to Equity or GEICO as potential options, but between the two, which one will save you the most?

Looking at the national average rates for both carriers, GEICO has average rates that are around 11% a month more expensive than those from Equity.

But that doesn't necessarily mean Equity will be the less expensive option for every driver. After all, auto insurance companies can offer drastically different rates to every driver depending on rating factors like your driving record, your age, your credit score, or even where you call home (among other things). So, at the end of the day, prices from each company will differ quite a bit from person to person.

Wanting to know if Equity or GEICO 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.

Equity vs. GEICO: Average Car Insurance Rates by State

Equity and GEICO only compete against each other in two states, with GEICO offering more affordable premiums to the average driver in all of them. Arkansas has the most noticable difference, where GEICO prices are $52 cheaper than insurance rates at Equity.

That being said, there's a lot more that goes into your car insurance cost than just where you live. Continue reading to learn more about how other variables will affect your rates.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- typically pay a lot for insurance compared to older drivers. That's 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. As you can see above, teens who use Equity save 4% per month compared to those who use GEICO.

Even so, both carriers will lower rates by the time you turn 25. GEICO offers the steepest decrease, with 25-year-olds paying less than half what 18-year-old drivers are charged. That being said, Equity still has the lowest premiums at $144 monthly.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll generally enjoy the cheapest car insurance prices you'll ever see. You've been on the road for years, and all that experience pays off when it comes to your monthly premiums for insurance.

When looking at Equity and GEICO specifically, which company is best for retired drivers? Equity gets the edge, with rates for drivers 65 and older almost 15% less expensive than the national average for GEICO.

Which is the Best Company for Married Drivers?

Did you know that car insurance prices are usually more expensive for single policyholders than they are for married policyholders? That's because policies for married drivers normally cover more than one vehicle, which a lot of companies will give you a discount for.

For single drivers, the difference in average premiums between these two carriers is not very significant, with Equity prices coming in at about 7% less than GEICO's. The advantage for married couples is more obvious, where drivers who use Equity save around $30 a month.

Equity or GEICO: Average Rates by Gender

You may not know, but men generally pay more for auto insurance than women do. That's because women are less likely to get into accidents and get tickets, which decreases the chances of filing a claim with insurance.

With Equity, men usually pay about $20 per month more than women, and nearly $10 with GEICO.

When it comes to the most affordable rates for each gender, Equity comes out as the lowest option for both genders, with average prices $14 less for men and $27 cheaper for women.

Equity 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.

For most people, car insurance isn't the easiest topic to understand. There are many different coverages that account for a bunch of different things. Some protect you and your car, while others only provide coverage for other people's property and health if you cause a collision.

However, the most common policies that drivers look at fall into two categories -- liability coverage (which covers the other party's property damage and injuries 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 limits, Equity has the significant edge, with average monthly premiums 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 around $262 a month to GEICO's $269.

Is Equity or GEICO Better for Drivers with Spotty Records?

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

Collisions and speeding tickets will most likely raise your prices, but is Equity or GEICO more affordable for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Equity for their auto insurance can typically expect their monthly bill to go up about 4% after getting a speeding ticket. GEICO policyholders can expect a bit more drastic of an increase of around 23%.

Even so, GEICO is normally the less expensive option for both drivers who have clean records and those with a recent ticket, offering rates that are $39 and $10 cheaper, respectively, compared to Equity Insurance Company.

Which Company is Best for Drivers After an Accident?

Equity drivers who get in a collision can expect to see their premiums climb by $25, while those who have insurance through GEICO will see about a $85 increase.

At the end of the day, Equity offers the most affordable rates for drivers with an at-fault accident on their records, with average prices coming in at $179 compared to GEICO's $200.

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 speeding ticket or even an accident. On average, GEICO will climb your premiums around 58% after a DUI, while Equity's average prices increase by 7%.

How does Credit Score Impact Equity and GEICO Rates?

You may not realized it, but your credit score can be used as one of the factors to determine your monthly insurance premiums. This isn't true for everyone (for example, California and Michigan are two states that ban the practice entirely), but it might come into play for many policyholders.

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 rates.

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

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

Is Equity or GEICO Better for Drivers who Work from Home or Have Short Commutes?

How much you drive can have a considerable impact on your monthly car insurance payment. That's because the fewer miles you put on your car, the less likely you are to be in a collision and file 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 rates for GEICO, with policyholders who drive the least paying about $8 less every month compared to those who drive 12,000 miles each year. Still, for drivers in both categories, Equity is the more affordable company.

Equity or GEICO: 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 insurance, but the type of area you live in can have a big impact as well. Generally, if you live in a rural area with fewer cars on the road, you'll pay a little less for car insurance, while the opposite is true for people in urban areas.

When comparing these two companies side-by-side, Equity usually 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, Equity Insurance Company's average prices are around $19 less than GEICO. People who live in suburban areas pay about $27 less with Equity compared to GEICO. Those in rural areas can expect to save around $16 with Equity compared to GEICO.

Equity vs. GEICO Discounts

No matter why you might be in the market for a new auto insurance policy, you're always going to want to save as much money as you can. That's where insurance discounts comes into play.

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

Luckily, we did the hard work for you and looked at all of the different discounts Equity and GEICO offer their customers so that you can see which company can save you the most money each month.

GEICO knocks Equity out of the park when it comes to the sheer number of discounts available, offering 18 more discounts than Equity.

There are a couple discounts both carriers offer, but GEICO also offers discounts for ABS, anti-theft, commercial drivers license, and more.

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

Final Thoughts: Is Equity or GEICO Best for You?

So, you've seen how different variables can affect your car insurance rates. We've shown you all the discounts each carrier offers, too. That's all well and good, but when it comes down to it, which insurance company is the best carrier for you and your specific profile and needs?

Equity might be best for you if....

• You will be the only person on the auto insurance policy.
• Your home is located in the suburbs.
• You drive fewer than 6,000 miles annually.

GEICO might be best for you if...

• You value the experience that comes with a large national car insurance carrier.
• You have above-average credit.
• You want to save extra money with discounts.

Hopefully, this guide has ben a valuable resource as you compare Equity and GEICO and that it aids in making a more informed decision about 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 Equity and GEICO. Luckily, Compare.com does all the hard work for you. Simply enter your ZIP codes below and get free quotes from dozens of top auto insurance carriers in your area, all in just a few minutes.

Equity vs. GEICO FAQs

Is Equity or GEICO cheaper?

Equity is the cheaper of the two companies when looking at national average premiums, with policies averaging $165 per month with Equity and $185 for GEICO. However, that doesn't mean Equity will be the lowest company for every policyholder, since there are lots of different factors (things like age, gender, driving record, etc.) that play a role in how much you pay.

Who is better, Equity or GEICO?

Unfortunately, the answer truly is "it depends.". No one carrier is necessarily "better" for each policyholder -- it all boils down to your unique car insurance profile. For example, GEICO is less expensive for drivers with excellent credit, while Equity offers cheaper rates for drivers with a recent DUI.

Why do Equity and GEICO offer me different rates?

Insurance carriers use lots of different variables when determining the premiums they charge. Things like age, gender, where your home is, your driving record, and sometimes even things like your credit score can all come into play. Both Equity and GEICO use different formulas, 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 multiple different companies.

How do I know if Equity or GEICO is right for me?

The only way to find the auto insurance carrier 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, sites like Compare.com make it easy for you to do just that. Just enter your ZIP code and you'll get quotes from dozens of your local top insurance companies for free. With those, you can guarantee you're getting the most affordable rate. And maybe you'll find that the best company for you isn't Equity 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.