Geico vs. AAA

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In 1936, Geico was founded by Leo and Lillian Goodwin. In 1951, Warren Buffet, then a business student at Columbia University, purchased the first shares of Geico stock. Decades later, in 1996, Buffett purchased all shares of Geico making the growing insurer a wholly owned subsidiary of Berkshire Hathaway. According to the National Association of Insurance Commissioners (NAIC), Geico is today the second largest car insurer in the country with a market share of 13.5% and insuring over 28 million vehicles.

AAA is a member-only auto insurance company. Memberships are available to anyone for purchase. AAA was established in 1902 as approximately 50 affiliated clubs of car enthusiasts. AAA is now one of best known car insurance companies and travel benefit companies in the country. AAA is well known for its roadside assistance programs and vacation travel plans and offers a host of discounts to its members.

Geico vs AAA: car insurance rates comparison

Geico ranks higher than AAA in terms of financial strength placing it in a better position to address future claims, though AAA is not far behind. Both companies rank above average in customer satisfaction. Geico is on average more likely to offer lower premiums to its car insurance policy holders than AAA offers to its club members.

Car insurance company Bankrate Score AM Best financial stability rating J.D. Power customer satisfaction score Average annual premium for minimum coverage Average annual premium for full coverage
Geico 4.6 A++ 871/1,000 $433 $1,405
AAA 3.8 A- 858/1,000 $602 $1,990

Rates by credit score

Though both companies consider driver credit scores when writing auto insurance policies and setting premiums, AAA penalizes its members with poor credit by imposing a significantly higher premium. Both companies’ reward drivers with better credit scores with lower premiums. While most states permit the use of credit scores for car insurance underwriting, a small number of states limit this use, including California, Hawaii, Maryland, and Massachusetts.

Car insurance company Poor Average Good Excellent
Geico $1,978 $1,505 $1,405 $1,312
AAA $3,706 $2,146 $2,003 $1,645

Rates by age

Teenage drivers are historically high risk drivers and involved in more accidents than older drivers. Both Geico and AAA take this into account in establishing auto insurance rates. The major jump in premiums for 18 year olds levels off dramatically as drivers age into maturity.

Car insurance company Age 16* Age 18 Age 25 Age 30 Age 40 Age 60
Geico $1,897 $3,672 $1,674 $1,465 $1,405 $1,326
AAA $3,210 $5,446 $2,317 $2,034 $2,003 $1,808

*16 year old cost when added to parents’ policy

Rates by driving record

Both Geico and AAA place a great deal of importance on the driving records of insurance applicants and their respective car insurance policy holders and premiums reflect this fact. AAA prices for car insurance policies for drivers with a DUI conviction are almost three times higher on average than the premiums for drivers with a clean record.

Car insurance company Clean driving record Speeding ticket Accident DUI conviction
Geico $1,405 $1,681 $2,032 $3,227
AAA $1,990 $2,947 $3,057 $5,613

Geico vs AAA: discounts

Geico offers many valuable discounts to its customers that help keep car insurance affordable for those willing to search for specific discounts that apply to them. Among other categories, Geico offers a wide array of discounts based upon equipment improvements made to vehicles.

In addition to a wide range of auto insurance discounts, AAA is well known for the added benefits it is able to offer to all of its members whether insured with the company or not. These include the many thousands of hotel and restaurants that offer discounts to AAA members.

Here are examples of popular Geico and AAA discounts:

Geico

  • Vehicle equipment discounts: Eligible policyholders may be able to get discounts for safety and auto protection improvements including dual airbags, anti-lock brakes, anti-theft systems and daytime running lights.
  • Military discounts: Military membership alone can provide a discount, as does emergency deployment.
  • Multi-car and multi-policy discounts: Bundling more than one vehicle in one car insurance policy or combining two or more policies, such as home or auto, may provide discounts.

AAA

  • Companion bundling discount: When you choose AAA for car insurance, you may receive a discount on other AAA insurance such as home or life.
  • Distant and good student discounts: When children between 15 and 25 are away at school, this discount may apply. Certain students who attain a 3.0 or higher GPA may qualify for a good student discount.
  • Discounts from membership: AAA members are able to apply for a membership discount. Retaining a membership over a period of years may make an AAA member eligible for a loyalty discount.

Geico vs AAA: online and mobile experience comparison

The Geico Mobile app is highly rated and well designed to ease the process of completing numerous tasks and transactions related to a car insurance policy. Reminders of key “to do’s” can be set and bills can be paid from anywhere.

The AAA Mobile App is highly rated by Apple and Google also. Easy remote access is provided to a multitude of comprehensive account management tools and AAA member services.

Both of these apps are available at the Apple Apps Store and Google Play:

  • Geico Mobile app: This app has an Apple store rating 4.8 out of 5 and a Google Play rating 4.7 out of 5. Reviews tout this app for its easy to access digital ID cards, policy access, bill paying and claim submission capabilities.
  • AAA Mobile App: This app has an Apple Store rating of 4.2 of 5 and a Google Play score of 4.2 of 5. This app is to AAA members whether they are car insurance policy holders or not. The app provides easy access to critical insurance services for emergencies such as roadside assistance and claim handling. Members are also able to use the app for trip planning services and 1000’s of hotel and restaurant discounts.

Frequently asked questions

What is the most important factor in determining my cost for car insurance?

There are many factors that influence the amount of premiums you will pay for auto insurance. Unfortunately, negative factors such as serious traffic violations or accidents typically have the biggest negative impact. These can however be mitigated to some extent with other discounts and efforts to improve driving skills.

How can I find the best price for car insurance?

There are many online resources to get you started in a search for the best price. By obtaining quotes for car insurance from a number of companies, you can find the best affordable coverage. Remember, you may discover by paying a little more you can obtain better coverage to fit your needs.

Can I get car insurance discounts as a senior?

Most car insurance companies offer discounts for seniors. The age where these discounts become available may vary from company to company. It is important to compare several companies and inquire about additional senior benefits such as discounts for successfully completing driving classes.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Credit: Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base), and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. The following states do not allow credit to be a factor in determining auto insurance rates: CA, HI, MA

Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied.

Incident: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction and lapse in coverage.