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

Quick Facts

• In general, GEICO offers significantly less expensive rates than AAA
• GEICO tends to be a much more affordable option for drivers with a DUI charge on their record

GEICO vs. AAA: Which Company has the Cheapest Car Insurance?

Are you considering a new insurance policy? After all, you've seen ads from all sorts of companies offering huge discounts. But exactly how much can you save by switching?

You might have narrowed it down to GEICO or AAA for your next policy, but which carrier has cheaper prices for car insurance?

As you can see, GEICO is quite a bit cheaper than AAA, with premiums averaging $185 per month compared to $314 with AAA when looking at the national average rates for insurance.

Even so, GEICO may not be the most affordable or best option for every driver out there. After all, auto insurance companies can offer drastically different rates to each driver depending on rating factors like your driving record, where you call home, your age, or even your credit score (among other things). So, at the end of the day, rates from every carrier will differ quite a bit from person to person.

Wanting to know if GEICO or AAA 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.

GEICO or AAA: Average Car Insurance Rates by State

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

There are plenty of other factors that go into your car insurance cost than just your home state. Keep reading to learn more.

Which is the Best Company For Young Drivers

Young drivers -- especially teens -- generally pay a lot for insurance compared to older drivers. That's because young, inexperienced drivers are statistically much more likely to get into an accident that results in an auto insurance claim, making them much riskier to insure.

However, that doesn't mean teen drivers can't still save money on their auto insurance. Just look at the table above -- where 18-year-old drivers who have GEICO for their car insurance pay more than $300 less than those who use AAA.

But both companies will offer you dramatically lower prices once you turn 25. For example, average premiums for GEICO policyholders drop over $200 and AAA's rates decrease about $400 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 prices you'll ever see.

But who has the best premiums for retired drivers between GEICO and AAA? GEICO gets the edge, with rates for drivers 65 and older $90 less expensive than the national average for AAA.

Which is the Best Company for Married Drivers?

Did you know that car insurance premiums are typically cheaper for married drivers than they are for single drivers? This usually boils down to married couples having several cars on their policy -- something a lot of insurance carriers will reward with discounts.

When it comes to relationship status, GEICO is the clear winner for those who are single, with rates around $161 a month less expensive than AAA, on average. The advantage for married policyholders with GEICO is also obvious, where drivers save about $85 per month.

GEICO vs. AAA: Average Rates by Gender

Men are statistically more likely than women to get into an accident or get pulled over for speeding. That means when it comes to car insurance men will normally end up paying a little more.

Women usually pay nearly $10 a month less than men with GEICO, and around $35 with AAA.

Looking at overall affordability, GEICO comes out as the cheapest option for both genders, with average prices $142 less for men and $116 cheaper for women.

GEICO or AAA: 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 coverages and limits that it can be hard to find the right policy.

That being said, most policies that many drivers look at fall into two categories -- liability only (which provides bodily injury and property damage coverage for other drivers and their passengers if you cause a collision) and full coverage (which typically refers to having comprehensive and collision coverages alongside liability).

If you're looking for state minimum liability limits, GEICO generally offers significantly more affordable rates of $101 compared to AAA's $169. When it comes to full coverage policies with similar limits, GEICO again has the edge, with policies about $200 per month cheaper than AAA, on average.

Is GEICO or AAA Better for Drivers with Spotty Records?

It's no big secret that drivers who are accident-free get better deals on their car insurance. But even if you have a spotty record, you can still find plenty of ways to save some cash on your monthly bill.

At-fault accidents and tickets will most likely raise your prices, but is GEICO or AAA more affordable for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

GEICO policyholders can expect their premiums to go up an average of $35 a month if they get a ticket, while AAA normally raises rates around $86 per month, on average.

However, GEICO tends to offer the best prices for drivers both with clean records and with a speeding ticket, offering premiums that are 46% and 50% less expensive, respectively, compared to AAA Insurance.

Which Company is Best for Drivers After an Accident?

GEICO drivers who get in an accident can expect to see their prices increase by $85, while those who have insurance through AAA will see about a $150 increase.

Overall, the cheaper rates come from GEICO, with monthly premiums averaging $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 auto insurance bill -- usually a lot more than a collision or ticket. AAA drivers usually see a 47% raise in their insurance prices after a DUI charge, while GEICO will normally climb rates by around 58%.

If you have a DUI on your record and are looking for more affordable premiums, GEICO tends to be the much more affordable option with average prices of $275 a month compared to $403 from AAA.

How does Credit Score Impact GEICO and AAA Rates?

Often times, your credit score can be used as one of the factors to calculate your monthly car insurance rates. This isn't always the case (for example, Michigan and California are two states that ban the practice entirely), but it does affect quite a few policyholders out there.

Auto insurance companies 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 carrier offers the most affordable prices for policyholders with good, average, or poor credit?

Which Company is Best for Drivers with Good Credit?

If you have a solid credit score, you'll usually find a better deal with GEICO. Drivers with "excellent" credit can save just under 30% compared to AAA, and those with "good" scores can also expect to see savings -- about $83 or 34% less expensive each month.

Which Company is Best for Drivers with Bad Credit?

GEICO typically offers lower premiums than AAA when it comes to drivers with less-than-perfect credit. Drivers with "fair" credit pay around $107 a month less with GEICO compared to AAA, and those with "poor" scores generally save an average of about $286 monthly.

Is GEICO or AAA 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 have a sizable impact on how much insurance carriers will charge for coverage? That's because the more miles you put on your vehicle, the more likely you are to get into an accident and cause an insurance claim.

For both drivers who put 6,000 miles on their vehicles annually, as well as those who average twice that figure, GEICO offers cheaper rates than AAA. AAA's average premiums for drivers with 6,000 annual miles come in over 40% more expensive than GEICO. Those who drive 12,000 miles every year can expect to pay more than 40% more with AAA over GEICO.

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

Where you park your car can have a substantial impact on your monthly car insurance payment. Usually, if you live in an urban area with more cars on the road, you'll pay a little more for auto insurance, while the opposite is true for people in rural areas.

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

Policyholders in rural ZIP codes see the lowest prices from both carriers, but GEICO comes out on top with average rates around $159 per month. GEICO also has more affordable average prices for drivers in urban and suburban ZIP codes -- a $173 and $116 per month respective difference when compared to AAA policyholders in similar areas.

GEICO vs. AAA Discounts

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

The challenging part is finding all of the discounts you're eligible for, since it can feel sometimes like every carrier has different discounts and each one is advertised differently.

In the section below, we've taken a look at all of the different discounts GEICO and AAA offer their customers so that you can find the company that has the most discounts and, therefore, the biggest savings.

Overall, AAA has the advantage when it comes to total number of discounts. GEICO offers a grand total of 28 discounts, while AAA has 33.

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 AAA discounts, academic discounts, advance quote discounts, and more that GEICO does not.

On the flip side, GEICO has a couple unique discounts of its own -- ABS discounts, commercial drivers license discounts, deployed driver discounts, and more.

Final Thoughts: Is GEICO or AAA Best for You?

So, we've broken down the average premiums for many of the variables car insurance companies look at, and we've shown you all the discounts each company offers. That's all well and good, but at the end of the day, which carrier is the right one for you and your specific driver profile?

GEICO is best for you if....

AAA is best for you if...

We hope this guide helps you get a better idea of the difference between GEICO and AAA and that you can now make a more informed decision when it comes to your insurance.

At the end of the day, the best way to make sure you're getting the best deal on your auto insurance policy is to compare quotes from several carriers, not just GEICO and AAA. 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 car insurance companies in your area, all in just a few minutes.

GEICO vs. AAA FAQs

Is GEICO or AAA cheaper?

Looking just at the national average rates, GEICO is the less expensive of the two carriers, offering average rates of $185 a month compared to $314 for AAA.

Who is better, GEICO or AAA?

Sadly, the answer truly is "it depends.". No single company is necessarily "better" for each driver -- it all comes down to what your unique auto insurance profile looks like.

Why do GEICO and AAA offer me different rates?

Insurance companies take a look at many different factors when calculating the prices they charge drivers. Things like age, gender, your driving record, where you call home, and sometimes even things like your credit score can all be taken into consideration. Both GEICO and AAA use different formulas, so each one will most likely offer different premiums. The only real way to see which carrier is the most affordable for you is by comparing personalized quotes from multiple different carriers.

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

The only way to find the auto 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 free quotes from dozens of the best insurance carriers in your area. That way, you can guarantee you're getting the best price. And who knows, the best carrier for you might not be GEICO or AAA at all!

Methodology

All data in this article has been gathered in collaboration with Quadrant Information Services. We analyzed more than 2.5 million rows of data to determine all of the average rates referenced above. All data is reported by each carrier to statewide insurance bureaus and is up-to-date as of July 1, 2021.