GEICO vs. AAA: Which Insurer Is Better for You?

In your search for car insurance, you’ve narrowed it down to two heavyweight contenders: GEICO and AAA. In one corner, you’ve got GEICO, the third-largest car insurance company in the U.S. It packs a punch with more discounts and coverage options than AAA. GEICO’s cheaper car insurance cost of $88 per month is well below the national average, making your wallet much happier.

That said, AAA — short for American Automobile Association — puts up a good fight, offering more perks but slightly higher prices, especially for liability coverage and insurance policies for senior drivers.

Overall, GEICO is the champ, scoring higher in cost, customer satisfaction, ease of use, and availability. But is it the best choice for you? Read on to find out.

Key Takeaways:

• GEICO has cheaper average rates across the board, including for young drivers and people with accidents.
• Despite similar customer satisfaction scores, GEICO stands above AAA for its ease of use and availability.
• AAA covers more ground with unique options that you won’t find with GEICO — like gap insurance and rideshare coverage.

How AAA and GEICO Stack Up

While price is an important factor when comparing car insurance, it isn’t the only one to consider. We’ve researched dozens of the best companies to uncover how each compares on price, customer satisfaction, ease of use, availability, and industry reputation. The result is a Compare.com Rating that lets you compare companies at a glance, as you’ll see below.

Both companies score high in cost and share the same rating for customer satisfaction, but GEICO comes out ahead of AAA car insurance in every other key category. This suggests that GEICO is easier to use, more widely available, and has a better reputation for car insurance.

But at the end of the day, every driver is different. Your unique insurance profile means your rates will be different from your friend’s or neighbor’s, and you might care more about customer service or policy perks than someone who focuses solely on price.

The best way to find the right company for you is to compare personalized quotes from multiple insurers. Car insurance comparison sites make it easy to compare several companies side by side.

GEICO vs. AAA: Average Auto Insurance Premiums Breakdown

Your car insurance rates can vary depending on several factors, like your ZIP code, vehicle type, and driving record. Let’s take a look at how GEICO and AAA stack up against each other and the national average for different driver profiles and coverage types.

If cheaper rates are your top concern, GEICO auto insurance is usually the way to go — especially if you’re a teen driver or have an at-fault accident haunting your record. But seniors and drivers with poor credit might find AAA’s rates more appealing since the price difference is smaller and they can take advantage of the extra services AAA offers (more on that later).

AAA vs. GEICO: Average Car Insurance Rates by State

Premiums can change faster than a traffic light from state to state. Factors like the number of cars on the road, the frequency of accidents, and the kind of car insurance laws each state has affect the prices you’ll find.

Here’s a peek at how much the average driver pays for each company across different states.

Looking at the data, GEICO once again comes out on top — and the price difference is quite large in some places. For instance, GEICO’s average monthly rates in Virginia are $98 cheaper than AAA, and drivers pay $100 more for AAA in Kentucky. Even in states like Oklahoma, where the gap is smaller, GEICO takes the lead by $53.

GEICO vs. AAA: Average Rates by Age

Age is one of the biggest factors that affect car insurance rates. Younger drivers with less experience tend to pay more because companies see them as riskier to insure. But as you rack up more birthdays and experience on the road, you might notice your rates start to drop.

The table below shows how GEICO and AAA stack up for different age groups.

Yet again, GEICO is the cheaper option across the board. If you’re a teen just starting to navigate car insurance, you may want to give GEICO a closer look — its average monthly premium is $66 less than AAA’s. Even for older drivers in their 50s or 60s, GEICO comes out ahead. The difference isn’t as jaw-dropping, but it can save you some extra money.

AAA vs. GEICO: Average Rates by Driving Record

Your driving record is like a report card for your behavior behind the wheel, and insurance companies are definitely paying attention. When shopping for car insurance, you can expect lower prices if you’ve got a clean slate.

But if you have a few dings on your record — like speeding or a recent fender bender — don’t be surprised if your costs start to climb.

Let’s explore how your driving history affects average premiums between GEICO and AAA.

No matter what kind of driver you are, GEICO offers the most affordable rates on average. With a spotless record, you can save around $33 per month with GEICO. But even if you have a few blemishes, GEICO is more cost-effective than AAA. The difference is most noticeable for drivers with an at-fault accident, where GEICO’s monthly average is $58 lower.

Comparing AAA and GEICO Car Insurance Discounts

Discounts are one of the simple ways to save money on your car insurance bill. Depending on the insurance company, you might qualify for discounts for driving habits, vehicle safety features, and even your profession. These discounts can add up quickly, potentially slashing hundreds of dollars off your premiums each year.

Let’s look at some of the most common discounts you’ll find at GEICO and AAA to see how they compare.

GEICO has the upper hand here, with 16 discounts compared to AAA’s 12. Both companies offer popular discounts, like multi-car, multi-policy (bundling), and good student discounts. Some notable discounts you’ll only find at GEICO include savings for federal employees, military personnel, and seat belt use.

Still, students who live away from home or drivers who like to make payments automatically or in one lump sum may have better luck with AAA.

Comparing GEICO and AAA Customer Satisfaction

Comparing car insurance companies is like comparing apples to oranges — each offers auto insurance, but they’re definitely not the same. Every company has its own unique blend of coverage options, discounts, additional benefits, and potential pitfalls.

Still, you can learn a lot from what real people are saying about their experiences. We scoured through countless reviews and found both have a mix of happy and not-so-happy customers.

Here’s how GEICO’s and AAA’s customer ratings vary across different review platforms:

The reviews are a bit of a rollercoaster, with some platforms giving higher marks to GEICO and others favoring AAA auto insurance. Ultimately, it’s important to take these reviews with a grain of salt and remember that individual experiences can vary widely.

For example, the GEICO policyholder below praised the company for its loyalty in keeping their auto policy active until they could find new coverage after moving to a new state.

But others — like the reviewer below — tell horror stories of GEICO raising prices by over 300% without explanation, even for customers with squeaky-clean driving records.

As for AAA, some reviews mention a decline in service quality, like being stuck on the side of the road for hours waiting for a tow truck that never showed up because they couldn’t reach a real person on the phone. The example below is an alarming review, considering AAA is widely known for its roadside assistance program.

Others — as shown in the review below — complain about AAA dragging its feet on settling claims, citing poor communication and delays due to investigations into the other driver.

More About AAA and GEICO

Price and customer reviews are critical when choosing between AAA and GEICO for car insurance, but they don’t paint the whole picture. It’s like trying to decide between two cars based only on their sticker price and a few online reviews — there’s a lot more under the hood to explore.

Let’s pop the hood and take a closer look at what sets these two insurance giants apart.

Coverage options

For coverage beyond the standard insurance products, AAA might be the better option. Both companies offer rental car coverage, and GEICO has mechanical breakdown insurance. But AAA has add-ons like gap insurance and rideshare coverage that you won’t find at GEICO.

Company perks

After five claim-free years, you’ll get accident forgiveness from both companies, but AAA also has a disappearing deductible. Plus, AAA membership gives members access to a wide range of perks, from roadside assistance to discounts on hotels, entertainment, and auto repairs.

Claims processing

Both companies score below average in J.D. Power’s 2023 Auto Claims Satisfaction Study, suggesting your experience filing a claim might not be smooth sailing. You’ll find a network of repair shops and the option to choose your own at both GEICO and AAA, but GEICO requires a damage inspection before you can schedule repairs, which could delay the process.

Mobile apps

AAA and GEICO both offer highly rated mobile apps. The GEICO mobile app lets you view your insurance ID cards, request roadside assistance, and pay your bill on the go. The app from AAA gives you access to travel planning tools, roadside assistance, and exclusive discounts if you’re a member of AAA.

GEICO vs. AAA FAQs

Still have questions about GEICO and AAA? We’ve got answers. Let’s dive in and see what you can expect from these companies.

What are the best car insurance companies?

The best car insurance company for you depends on your individual needs and preferences. Some top contenders include GEICO, State Farm, Progressive, and Allstate. Consider factors like price, coverage options, discounts, customer service, and financial stability when making your decision.

Is GEICO more expensive than AAA?

GEICO tends to be less expensive than AAA, according to Compare.com data. But remember that insurance rates can swing high or low depending on factors like your age, driving record, location, and vehicle type. It’s always a good idea to compare auto insurance quotes from multiple companies to find the best option for your specific situation.

Why is GEICO so cheap?

GEICO can offer more competitive rates because it operates primarily online and over the phone, which reduces overhead costs. GEICO also offers a wide range of discounts that can help you get lower rates.

Is GEICO the most expensive car insurance?

No, GEICO isn’t usually the most expensive car insurance company. In fact, it often has better rates, especially for drivers with good driving records. But premiums depend on individual criteria, so it’s always best to compare quotes from multiple insurers to find the best deal for what you need.

Data Methodology

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.

Rating Methodology

Compare.com’s mission is to help our readers make more informed decisions when it comes to their personal finances. Our editorial staff has crafted a proprietary, objective rating formula — the Compare.com Rating — to make it easier for our readers to analyze and compare many of the industry’s most well-known insurers. The score you see referenced in this article is based on several factors, including:

• Cost: How the insurer’s average rates compare to its direct competitors and the industry as a whole. This includes available savings opportunities, such as discounts and other factors.
• Customer satisfaction: How satisfied existing customers are with the service they receive. This includes the insurer’s scores among various third-party studies, such as the J.D. Power U.S. Insurance Shopping and Claims Satisfaction studies, and the National Association of Insurance Commissioners (NAIC) Complaint Index, among others.
• Ease of use: How easy it is for policyholders to utilize their policies. This includes mobile app availability, customer service availability, payment flexibility, and other related factors.
• Availability: The overall scope of the company’s insurance offerings. This includes available coverage types, national footprint, and other related factors.
• Industry reputation: A measure of the insurer’s overall standing within the industry. This includes its AM Best Financial Strength rating, BBB accreditation, and other related factors.

Sources

1. National Association of Insurance Commissioners, “2023 Top 25 Groups and Companies by Countrywide Premium,” last accessed April 16, 2024.
2. Trustpilot, “GEICO,” last accessed April 16, 2024.
3. Clearsurance, “GEICO vs. Progressive,” last accessed April 16, 2024.
4. ConsumerAffairs, “GEICO Reviews,” last accessed April 16, 2024.
5. Better Business Bureau, “GEICO,” last accessed April 16, 2024.
6. Consumer Reports, “Car Insurance,” last accessed April 16, 2024.
7. Trustpilot, “AAA,” last accessed April 16, 2024.
8. Clearsurance, “AAA,” last accessed April 16, 2024.
9. ConsumerAffairs, “AAA Auto Insurance Reviews,” last accessed April 16, 2024.
10. Better Business Bureau, “AAA – the Auto Club Group,” last accessed April 16, 2024.
11. Consumer Reports, “GEICO (Berkshire Hathaway Insurance Group),” last accessed April 16, 2024.
12. J.D. Power, “Auto Insurers Manage Customer Expectations as Repair Cycle Times Double in Two Years, J.D. Power Finds,” last accessed April 16, 2024.