Leo and Lillian Goodwin founded Geico in 1936. Warren Buffett, then a Columbia University business student, bought the first shares of Geico stock in 1951. In 1996, Buffett bought all shares of Geico, making it a Berkshire Hathaway wholly-owned subsidiary. Geico, which has a 13.5% market share and insuring more than 28 million vehicles, is the country’s second-largest car insurance company according to the National Association of Insurance Commissioners.
AAA , a member-only insurance company, is . Anyone can purchase memberships. AAA was founded in 1902 with approximately 50 car enthusiast clubs. AAA is a well-known travel benefit and car insurance company. AAA is well-known for its roadside assistance programs, vacation travel plans, and offers a host discount to its members.
Geico vs AAA: car insurance rates comparison
Geico is ranked higher than AAA for financial strength, which puts it in a better place to handle future claims. AAA is close behind. Both companies are above average in customer satisfaction. Geico offers car insurance policyholders a lower premium than AAA, and is more likely to do so to their club members.
Rates based on credit score
While both companies take driver credit scores into account when they write auto insurance policies or set premiums, AAA penalizes members with poor credit by charging a significantly higher premium. Both companies offer lower premiums for drivers with higher credit scores. Most states allow the use of credit scores to underwrite car insurance. However, there are a few states that limit this use: California, Hawaii and Maryland.
Rates based on age
Teenage drivers are more at risk than older drivers and have been involved in more accidents. AAA and Geico both take this into consideration when establishing auto insurance rates. As drivers reach maturity, the major increase in premiums for 18-year-olds is negligible.
Driving record rates
AAA and Geico place great importance on driving records and car insurance policy holders. Premiums reflect this fact. AAA car insurance premiums for DUI-convicted drivers are nearly three times more expensive than those for clean drivers.
Geico vs AAA: discounts
Geico offers many discounts to customers. This helps keep car insurance affordable for those who are willing to search for the right discounts. Geico offers discounts for vehicle upgrades, among other categories.
AAA offers a broad range of auto insurance discounts and is well-known for the additional benefits it can offer all its members, regardless of whether they are insured. AAA members enjoy discounts at thousands of restaurants and hotels.
These are some examples of AAA and Geico discounts that are very popular:
- Discounts on vehicle equipment: Policyholders who are eligible may be eligible to receive discounts on safety and protection upgrades such as dual airbags and anti-lock brakes.
- Discounts for military members: Both military membership and emergency deployment can offer discounts.
- Multi-car or multi-policy discounts may be available if you insure more than one vehicle or combine two or more policies (such as auto or home), to get discounts.
- Discount on companion bundles: If you select AAA for your car insurance, you might be eligible to receive a discount off other AAA insurance like home or life.
- Distant and good students discounts: This discount is available for children aged between 15 and 25 who are not attending school. A good student discount may be available to students with a 3.0 GPA or higher.
- AAA members can apply for a discount on their membership. AAA members may be eligible for a loyalty discount if they have a AAA membership for more than a few years.
Geico vs AAA – Online and Mobile Experience Comparison
The Geico Mobile App has been highly rated and designed to make it easy to complete many transactions and tasks related to car insurance policies. You can set reminders for key “to do” items and bill payments can be made from anywhere.
Google and Apple also highly rate the AAA mobile app. Access to numerous account management tools, as well as AAA member services, is possible via remote access.
- Geico Mobile app: This application has a Apple Store rating of 4.8 out 5, and a Google Play Rating of 4.7 out 5. This app is highly praised by users for its ability to quickly access digital ID cards, claim submission and bill payment, as well as easy access to policy access and bill pay.
- AAA Mobile App: This app is Apple Store rated at 4.2 out of 5, and Google Play scored at 4.2 out of 5. The app is available to AAA members regardless of whether they have car insurance. It provides quick access to important insurance services such as roadside assistance, claim handling, and roadside assistance. The app also offers trip planning and 1000’s in-app restaurant and hotel discounts.
Questions frequently asked
What is the most important thing in determining my car insurance cost?
The amount you pay for auto insurance premiums will depend on many factors. Negative factors like traffic violations and accidents are the most detrimental. However, these can be reduced to some degree by taking other discounts or improving your driving skills.
How do I get the best car insurance price?
Many online resources are available to help you get started in your search for the best price. You can get the most affordable car insurance by getting quotes from several companies. You may find that you can get better coverage by paying a little more.
Are there any discounts on car insurance for seniors?
Many car insurance companies offer senior discounts. These discounts may not be available at all for everyone. It is important that you compare different companies and ask about senior benefits, such as discounts for successful completion of driving lessons.