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

Quick Facts

• Based on national averages for car insurance, GEICO offers less expensive rates than Iowa Mutual
• GEICO offers more affordable premiums for policyholders who have a clean record
• Iowa Mutual has more affordable prices for policyholders whose driving record contains an at-fault collision

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

Are you considering a new insurance policy? With so many ads from all sorts of companies offering hefty savings, you're probably wondering exactly how much you might be able to save.

You might be considering GEICO or Iowa Mutual for your next policy, but between the two, which one will offer you cheaper premiums?

Looking at the national average rates for both carriers, GEICO is around $26 a month less expensive than Iowa Mutual.

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

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

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

GEICO and Iowa Mutual only compete against each other in Nebraska, where GEICO offers the cheaper average premiums. GEICO drivers tend to pay about $45 per month less on average compared to drivers who use Iowa Mutual for their car insurance.

There's a lot more that goes into your auto insurance payment than just your home state. Read on 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. It's normally because teen drivers are statistically much more likely to get into accidents since they have less experience on the roads.

However, that doesn't mean that teen drivers have to just accept sky-high car insurance rates. As you can see above, teens who use GEICO save almost 25% a month compared to those who use Iowa Mutual. It's worth noting that GEICO offers auto insurance in 50 different states compared to Iowa Mutual's one, which can skew the average prices a bit, but the difference here is still considerable.

That being said, both carriers will decrease premiums by the time drivers turn 25. Iowa Mutual offers the steepest reduction, with 25-year-olds paying less than a third of what 18-year-old drivers are charged. That being said, GEICO still has the most affordable rates at $163 monthly.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll typically enjoy the cheapest 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 auto insurance.

But who has the best rates for retired drivers between GEICO and Iowa Mutual? In this case, Iowa Mutual has the slight edge, with premiums about $2 per month less than GEICO. But the difference is only around 5%, so other variables will likely come into play when determining which company has the lowest prices for you.

Which is the Best Company for Married Drivers?

Married policyholders tend to get slightly cheaper car insurance rates than those who are single. That's usually because married couples tend to own and insure several vehicles, which can often earn you a discount.

For single policyholders, the difference in average prices between these two companies is significant, with GEICO premiums coming in at about 15% less than Iowa Mutual's. It's not quite so glaring for married drivers, where drivers who use GEICO save around 4% a month.

GEICO or Iowa Mutual: Average Rates by Gender

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

Women normally pay about 4% per month less than men with GEICO, and nearly 15% less with Iowa Mutual when compared to their male counterparts.

Looking at the data for each carrier specifically, GEICO comes out as the most affordable option for both genders, with average rates 17% less for men and 7% cheaper for women.

GEICO 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.

Auto insurance can be a complicated subject for most people. 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.

That being said, most policies that drivers look at fall into two categories -- liability coverage (which provides bodily injury and property damage coverage for other drivers and their passengers if you cause an accident) and full coverage (which usually refers to having collision and comprehensive coverages in addition to what you get with liability).

When it comes to state minimum limits for liability insurance, Iowa Mutual has the edge, while GEICO offers the cheapest average prices for full coverage policies with similar coverage limits. Policyholders looking for basic state minimum coverage can save around $7 with Iowa Mutual, while full coverage comes out to be around $60 more affordable with GEICO.

Is GEICO 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.

Speeding tickets and at-fault collisions will most likely raise your premiums, but is GEICO or Iowa Mutual less expensive for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Drivers who use GEICO for their auto insurance can generally expect their monthly bill to go up about 23% after getting a speeding ticket. Iowa Mutual policyholders can expect a less drastic increase of around 6%.

However, GEICO has cheaper rates for drivers in both categories, offering prices that are 30% and 14% less expensive, respectively, compared to Iowa Mutual.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their car insurance through GEICO can expect to see about an $85 -- or around 43% -- rise in their insurance rates. Drivers who use Iowa Mutual for their auto insurance will see a monthly bill about $27 (or 14%) more expensive after reporting a collision to their car insurance company.

At the end of the day, Iowa Mutual offers the lowest premiums for drivers with an at-fault accident on their records, with average prices coming in at $191 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 ticket or even an accident. For example, GEICO increases average rates by more than $150 a month -- that's nearly a 60% increase.

GEICO has the overall most affordable premiums for drivers with a DUI on their records at $275 a month, but it's worth noting that GEICO's average rates come from 50 states compared to just one for Iowa Mutual, so the data may be skewed slightly.

How does Credit Score Impact GEICO and Iowa Mutual Rates?

Did you know many auto insurance carriers take your credit score into account when determining prices? This isn't true for everyone (Michigan, for example, has banned the use of credit score as an insurance factor) but it will come into play for several policyholders.

The reasoning 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 premiums, while those with poor credit will usually be forced to pay more.

Looking at GEICO and Iowa Mutual specifically, which company has the best rates for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have a solid credit score, GEICO will generally reward you the most. For drivers with "excellent" credit scores, GEICO comes in just under 19.63 more affordable. Drivers with "good" credit scores typically save around 6% with GEICO compared to average prices from Iowa Mutual.

Which Company is Best for Drivers with Bad Credit?

GEICO typically offers lower premiums than Iowa Mutual when it comes to drivers with less-than-perfect credit. Drivers with "fair" credit pay about 9% per month less with GEICO compared to Iowa Mutual, and those with "poor" scores normally save an average of around 13% per month.

Is GEICO or Iowa Mutual 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 rates. That's because the more milage you put on your car, the more 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 Iowa Mutual charges. However, there's a small difference in monthly prices for GEICO, with policyholders who drive the least paying about $8 less every month compared to those who drive 12,000 miles yearly. Still, for drivers in both categories, GEICO is the cheaper carrier.

GEICO 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 car insurance, but the type of area you live in can have a pretty big impact as well. Generally, those who live in urban areas will pay more than policyholders in rural areas since there are a lot more vehicles on the roads where they live.

GEICO boasts the cheapest average rates 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 15% with GEICO compared to Iowa Mutual. People who live in suburban areas pay about 7% less with GEICO compared to Iowa Mutual. For drivers in urban ZIP codes, GEICO's average prices are around 15% less than Iowa Mutual.

GEICO 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. That's where auto insurance discounts comes into play.

But where do you even start? With so many discounts out there, it may seem challenging to find all the of the ones you can take advantage of.

Luckily, we did the hard work for you and compared all of the different discounts offered by GEICO 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.

GEICO knocks Iowa Mutual out of the park when it comes to the sheer number of discounts available, offering 16 more discounts than Iowa Mutual.

A couple of those are overlapping for things like ABS discounts, discounts for being a defensive driver, discounts for being a good student, and multi-policy discounts. GEICO also offers discounts for commercial drivers license, COVID-19 relief, deployed driver, and more.

On the other hand, Iowa Mutual has a few proprietary discounts of their own for things like claim free discounts, hybrid vehicle discounts, and renewal discounts.

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

You've seen the effect certain factors have on your car insurance and the different discounts carriers offer. That's all well and good, but at the end of the day, is GEICO or Iowa Mutual the right carrier for you and your specific profile and needs?

GEICO might be best for you if....

• You have received a ticket within the last few years.
• Your credit score is high.
• You want to save money while purchasing insurance for a teenager.

Iowa Mutual might be best for you if...

• You want to save money on your auto insurance after an accident.
• You're looking for the best premiums on liability only coverage.
• You're of retirement age and want to take advantage of lower rates.

Hopefully, this guide has ben a valuable resource as you compare GEICO and Iowa Mutual 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 companies, not just GEICO and Iowa Mutual. 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 carriers in your area, all in just a few minutes.

GEICO vs. Iowa Mutual FAQs

Is GEICO or Iowa Mutual cheaper?

GEICO is the less expensive of the two companies when looking at national average premiums, with policies averaging $185 a month with GEICO and $211 for Iowa Mutual. Even so, that doesn't mean GEICO will be the most affordable carrier for each policyholder, since there are many different variables (things like age, gender, driving record, etc.) that play a role in how much you pay.

Who is better, GEICO or Iowa Mutual?

Unfortunately, the only answer we can give you is "it depends.". Neither company is "better" for every policyholder -- it all comes down to what your unique auto insurance profile looks like. For example, GEICO is more affordable for drivers who have less-than-stellar credit scores, while Iowa Mutual offers cheaper prices for policyholders with an at-fault collision on their record.

Why do GEICO and Iowa Mutual offer me different rates?

Insurance carriers use lots of different factors when calculating the rates they charge. Things such as gender, your driving record, where you live, age, and sometimes even things like your credit score can all be taken into consideration. Both GEICO and Iowa Mutual calculate prices using different formulas, so it's likely they'll offer different premiums. The best way to determine which carrier is the lowest for you is by comparing personalized quotes from a range of different companies.

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

The only way to find the car insurance company 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 auto insurance companies for free. That way, you can guarantee you're getting the cheapest price. And maybe you'll find that the best carrier for you isn't GEICO 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.