Is Geico Cheaper Than AAA? Complete Guide

Is Geico cheaper than AAA?
Yes, Generally, Geico is a more affordable choice for car insurance compared to AAA. Our team discovered that AAA’s yearly cost for full-coverage insurance is around $2,880, whereas Geico’s is about $1,596. 

The typical cost for full-coverage car insurance nationwide is around $2,008.

Geico is a big car insurance company, and AAA is famous for helping out when your car has problems on the road. Let’s see how they compare for car insurance. Our Team will check who’s better regarding coverage, cost, and customer service.

We’ve also looked into other car insurance companies to find the best and cheapest ones. To ensure you’re getting the best deal for the coverage you want, compare quotes from different car insurance companies.

AAA vs. Geico Car Insurance Reviews

Both AAA and Geico are well-known car insurance companies with good coverage and service. However, our research team gave Geico an overall score of 9.1 out of 10.0, while AAA got an 8.6. Geico is also ranked as the sixth-best car insurance company, winning the title of Best for Budget-Conscious Drivers.

Is AAA Better than Geico?

Geico scored higher overall and in four out of five categories. 

Here’s a comparison:

AAAGeico
Year Founded19021936
AM Best Financial Strength RatingA+A++
BBB RatingNot RatedA+
J.D. Power Claims Satisfaction Score871/1,000889/1,000
Our AwardN/ABest for Budget-Conscious Drivers

In our research, we found that Geico offers some of the lowest car insurance rates nationwide. Geico holds an impressive A++ financial strength rating from AM Best, indicating its ability to pay customers’ claims. While AAA has an A+ rating from AM Best and performed well in J.D. Power’s study, Geico’s ratings were higher overall.

AAA vs. Geico Insurance Comparison 

Here’s a simple comparison table:

AAAGeico
Year Founded19021936
AM Best Financial Strength RatingA+A++
BBB RatingNot RatedA+
J.D. Power Claims Satisfaction Score890/1,000874/1,000
Our AwardN/AAffordable for Most Drivers

In summary, Geico tends to outperform AAA in various aspects, making it a preferred choice for many drivers, especially those looking for budget-friendly options.

GEICO vs. AAA: Which company is best for you?

Geico and AAA are well-known insurance companies in the U.S. with many customers. We’ve compared them to help you figure out which one might be better for you. 

Keep reading to learn more.

AAA Car Insurance

AAA is famous for helping out with roadside issues, and they also offer car insurance to their members. However, AAA doesn’t directly provide the coverage. Instead, they work with other companies to offer insurance. 

This means that the types of coverage and how things work can vary a lot depending on where you are.

GEICO Car Insurance

Geico is the second-biggest car insurance provider in the country and is widely recognized. People usually rate their satisfaction with Geico positively. 

Additionally, Geico is known for offering some of the cheapest rates compared to other big insurance companies.

GEICO vs. AAA: Which Is Better for Discounts?

You know what?

Geico gives a lot more discounts than AAA, but AAA wins in this category because they provide specific numbers for potential savings on their safe driving app.

Many insurance companies provide various discounts for drivers, such as students and those with safety features like anti-lock brakes and airbags in their cars. While finding discounts is good, what really matters is the final price in your quote.

Two main discounts offered by most insurance companies are bundling your home and auto coverage, giving you a discount for having both types of insurance with the same company, and a usage-based car insurance program, which offers a discount based on your driving habits and mileage.

Typically, there’s a 17% discount for bundling home and auto coverage, but this can vary. GEICO and AAA don’t specify the exact discount they give for bundling policies. 

AAA provides up to a 10% discount for joining their safe driving program, SMART Trek, which uses an app to measure your driving behavior. GEICO doesn’t mention the specific savings with DriveEasy, their safe driving app. 

They mention that safe drivers might get a lower premium, but unsafe drivers could see an increase, so consider this before signing up

What is the Difference Between AAA Plus and AAA Classic?

What Are The Types of AAA Insurance Policies?

Who Typically Has The Cheapest Car Insurance?

GEICO vs. AAA: Who Has Better Customer Service?

Our team figures out how customers feel about service by looking at J.D. Power rankings and keeping an eye on complaints filed with the National Association of Insurance Commissioners (NAIC).

In the J.D. Power auto insurance service ranking, the score is 835. Geico has a satisfaction score of 843 out of 1,000, a bit higher than the average. AAA operates under different names, so it doesn’t have just one J.D. Power score. It got 842, 811, and 811 for three entities. All these scores are lower than Geico, making Geico the winner here.

The NAIC compliance report rates insurance companies based on the total number of complaints. The national median score is 1.00. A score below 1.00 means fewer complaints than average, and a score above means more complaints. 

Geico rated 2.04, more than double the average complaints. 

For AAA, it’s a bit tricky because it operates under different names. AAA’s rating is nearly half the national average, making them the clear winner in this category.

Who Has the Best Customer Satisfaction Rating? GEICO VS AAA

Customer Satisfaction Ratings 

CategoryGEICOAAA
J.D. Power Score (Out of 1,000)843Highest AAA rating
Rental Experience5/53/5

In J.D. Power rankings, Geico scored one point higher than the highest AAA rating, achieving a total of 843 out of 1,000. Geico also earned 100% satisfaction in their rental experience.

Claims Process Ratings 

CategoryGEICOAAA
First Notice of Loss4/53/5
Estimation Process4/54/5
Repair Process4/54/5
Claims Servicing4/54/5
Rental Experience5/53/5
Settlement4/53/5

In terms of the claims process, both Geico and AAA scored similarly, with Geico having a slightly higher satisfaction rate in some categories, especially the rental experience.

AAA vs. Geico Cost Comparison By State (Car Insurance)

AAA and GEICO compete in 10 states, and GEICO generally offers more affordable rates to the average driver in all of them. 

However, in most other states, GEICO is the cheaper choice. Your auto insurance cost depends on various factors beyond just your home state.

StateAAAGEICO
AR$212$135
AZ$349$131
CA$215$142
IL$279$176
LA$644$888
MO$376$261
NE$346$166
NV$275$177
TX$179$171
WI$246$119

AAA vs. Geico Mobile App Ratings

Geico and AAA both have highly-rated mobile apps available on iOS and Android. 

  • Geico Mobile has a rating of 4.6 out of 5.0 on Google Play and 4.8 out of 5.0 on the App Store. 
  • The AAA Mobile app has a rating of 4.4 out of 5.0 on Google Play and 4.6 out of 5.0 on the App Store.

Pricing Policy (AAA vs GEICO)

Average Cost for Different Violations

ViolationAverage Cost (GEICO)Average Cost (AAA)
Speeding ticket$1396$4070
At-fault accident claim$1588$4008
Reckless driving ticket$2236$5531
DUI$2553$5536

Average Annual Rates by Credit Score

Credit ScoreAverage Annual Rates (GEICO)Average Annual Rates (AAA)
Excellent$1063$2814
Very Good$1121$3006
Good$1483$3728
Fair$1356$4027
Poor$2050$6562

Wrap-Up (Is Geico cheaper than AAA)

Geico seems to be a better and cheaper option for car insurance compared to AAA. Geico provides good prices, high customer satisfaction, and lots of discounts. 

AAA is famous for helping with roadside problems, but their car insurance can differ in coverage and prices based on where you are and the companies they work with.

FAQ

Which is better for car insurance, Geico or AAA?

Many drivers prefer Geico because it often has lower yearly premiums, higher customer satisfaction, and more discounts. However, the right choice depends on personal preferences and needs.

Is AAA’s roadside assistance better than Geico’s?

AAA is well-known for its roadside assistance, offering more than traditional car insurance. If extensive roadside help is important, AAA might be a better option. While Geico also provides roadside assistance, the coverage may vary.

Are Geico’s discounts better than AAA’s?

Geico has many discounts, but AAA may excel with specific numbers for potential savings through their safe driving app. It’s crucial to compare discounts based on individual eligibility and preferences.

How do Geico and AAA compare in customer service?

Geico generally provides better customer service, with higher J.D. Power scores and fewer complaints. Geico’s customer satisfaction, especially in claims processing, tends to be higher compared to AAA.

In which states is Geico cheaper than AAA for car insurance?

Geico is typically more affordable than AAA in 10 states where they directly compete. However, it’s important to compare quotes based on individual circumstances, as auto insurance costs can vary depending on factors beyond the home state.

Methodology

Our comparison was based on comprehensive research, including customer satisfaction scores from J.D. Power, average annual premiums, discounts, and roadside assistance offerings. We also considered factors such as credit score impact on rates and various violations’ average costs. The information provided is for general understanding, and individuals are encouraged to obtain personalized quotes to make informed decisions based on their specific needs and circumstances.

Jesuraj S

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