Leo and Lillian Goodwin founded Geico in 1936. In 1951, Warren Buffett, then an economics student at Columbia University, purchased his first Geico stock. Decades later, in 1996, Buffett purchased all of his Geico shares, turning the growing insurance company into a wholly owned subsidiary of Berkshire Hathaway. According to the National Association of Insurance Commissioners (NAIC), Geico is currently the nation’s second largest auto insurer with a 13.5% market share and insures more than 28 million vehicles.
AAA is a membership-based auto insurance company. Anyone can purchase a membership. AAA was founded in 1902 as an affiliated club of about 50 car enthusiasts. AAA is today one of the nation’s most recognized auto and travel insurance companies. AAA is known for its roadside assistance programs and vacation travel plans, and offers various discounts to members.
Geico vs AAA: Comparing Auto Insurance Premiums
Geico beats AAA in terms of financial strength and is well positioned to process future claims, but AAA is not far behind. On average, Geico tends to offer lower premiums to auto policyholders than the AAA premiums it offers to club members.
|auto insurance||bank note||AM’s Highest Financial Stability Rating||JD Power Customer Satisfaction Index||Average annual premium for minimum coverage||Average Annual Premium for Comprehensive Insurance|
|geisha||4.6||A++||871 / 1,000||$433||$1,405|
|AAA||3.8||1-||858 / 1,000||$602||$1,990|
credit score rate
Both companies take into consideration the credit rating of drivers when issuing motor insurance policies and setting premiums, but AAA penalizes policyholders with lower credit ratings by charging significantly higher premiums. there is Both companies reward drivers with lower premiums and better credit ratings. Most states allow the use of credit scores to underwrite auto insurance, but some states, such as California, Hawaii, Maryland, and Massachusetts, restrict this use.
Price by age
Historically, younger drivers are higher risk drivers and have been involved in more accidents than older drivers. Both Geico and AAA take this into account when setting their auto insurance rates. The massive increase in 18-year-old premiums slows dramatically as drivers get older.
|auto insurance||16 years *||18 years||25 years||30 years||40 years||60 years|
*For 16-year-olds, the price is when added to the parent’s insurance.
Driving history fee
Both Geico and AAA place a high value on the driving record of their policyholders and their respective auto policyholders, and the awards reflect that fact. Her AAA rates for car insurance for drivers convicted of DUI are, on average, about three times those of unrecorded drivers.
|auto insurance||clean driver’s license||ticket||incident||drunk driving conviction|
Geico vs AAA: Discounts
Geico offers its customers many valuable discounts that help keep auto insurance affordable for those looking to find specific discounts that apply. Among other categories, Geico offers a wide range of discounts based on equipment upgrades made to the vehicle.
In addition to its wide range of auto insurance discounts, AAA is known for the additional benefits it can offer to all members, whether or not they have company insurance. This includes thousands of hotels and restaurants that offer AAA member discounts.
Here are some popular discounts from Geico and AAA:
- Discounts on vehicle equipment: Eligible policyholders receive discounts on vehicle safety and security upgrades such as dual airbags, anti-lock brakes, anti-theft system and daytime running lights.
- Military discount: Military membership alone can offer discounts as well as emergency response.
- Discounts for multiple cars and multiple policies: Combine multiple vehicles into one auto policy or combine two or more policies. B. Your home or car insurance may offer discounts.
- Companion package discounts: If you choose AAA auto insurance, you can get discounts on other AAA policies such as home and life insurance.
- Discounts for excellent distant students: This discount may apply to children between the ages of 15 and 25 who are not in school. Certain students who earn a GPA of 3.0 or higher may qualify for a good student discount.
- Member discount: AAA members can apply for member discounts. AAA members receive loyalty discounts when they maintain their membership for years.
Geico vs. AAA: Comparing Online and Mobile Experiences
The Geico mobile app is highly rated and well designed to simplify the process of completing numerous tasks and transactions related to auto insurance. Set reminders for important “tasks” and pay your bills from anywhere.
The AAA mobile app is also highly rated by Apple and Google. AAA members are provided with easy remote access to a wide range of comprehensive account management tools and services.
Both apps are available on the Apple Apps Store and Google Play.
- Geico Mobile App: The app has an Apple Store rating of 4.8 out of 5 and a Google Play rating of 4.7 out of 5. Reviews highlight how easy it is to access your digital ID card, access your policies, pay bills, and submit claims.
- Mobile AAA App: This app has an Apple Store rating of 4.2 out of 5 and a Google Play rating of 4.2 out of 5. This app is for AAA members with or without auto insurance. The app provides easy access to essential emergency insurance services such as roadside assistance and claims processing. Members can also use the app for travel planning services and discounts at thousands of hotels and restaurants.
Frequently Asked Questions
What are the most important factors in determining your car insurance premium?
There are many factors that affect the premium you pay for auto insurance. Unfortunately, negative factors such as serious traffic violations and accidents often have the greatest negative impact. However, these may be partially mitigated by other discounts and efforts to improve driving skills.
How can I find the best price for car insurance?
There are many online resources you can use to find the best prices. By getting auto insurance quotes from various companies, you can find the best coverage at an affordable price. Please note that you may be able to get better coverage for your needs by paying a little more.
Do Seniors Get Discounts on Auto Insurance?
Most auto insurance companies offer discounts for seniors. The age at which these discounts are available may vary by company. It’s important to compare multiple companies and ask about additional benefits for seniors, such as: B. Discounts on successfully completed driving lessons.
Business Insurance uses Quadrant Information Services to validate 2021 rates for all zip codes and carriers in all 50 states. The rates quoted in Washington DC are based on his 40-year-old male and his 40-year-old female driver driving impeccably. Good creditworthiness and the following coverage limits:
- $100,000 liability insurance per person
- $300,000 liability for personal injury
- $50,000 liability for accident property damage
- $100,000 per person personal injury caused by an uninsured driver
- $300,000 bodily injury to uninsured driver due to accident
- $500 Over Collision
- $500 Total Deductible
To determine the minimum coverage, Asegranzas para Negocios used the minimum coverage corresponding to each state’s requirements. Our entry level driver owns a 2019 Toyota Camry, travels 5 days a week and drives 12,000 miles per year.
These are sample rates and should only be used for comparison purposes.
credit: Fees are calculated based on the following insurance credit levels assigned to drivers: The insurance credit amount takes into account the official credit score, but is not solely dependent on this variable. In the states of CA, HI, and MA, creditworthiness may not be taken into account when determining auto insurance rates.
Age: A. Rates were calculated using a baseline profile of 18-60 years (baseline: 40 years).
incident: Rates were calculated by applying the following incidents to assess baseline profiles: clean record (baseline), negligent accidents, speeding fines, simple DUI convictions, and lack of coverage. .