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The Department of Transportation recently published data showing that U.S. Police departments collectively reported there are more than 7 million car accidents per year nationwide. And, The National Safety Council states that there were 40,000 deaths and 4.5 million serious injuries resulting from car crashes in 2018. In addition to the human toll, the National Highway Traffic Safety Administration estimated that the total dollar value of lost life, damaged property and lost productivity cost the country almost $1 trillion per year.

Knowing this, we don’t know why anyone would drive a car without insurance. And its’ why virtually every state in America mandates auto insurance as a prerequisite for driving on their roadways. To drive without insurance is to expose you and your family to potentially dire financial risk.

Auto insurers seek to quantify and manage the probabilities of automotive accidents. They have voluminous data (sometimes called actuarial tables) that tell them how frequently vehicular accidents and their resulting injuries occur. Insurers price their coverage by estimating the number of policies they believe they will sell times the rates they expect to charge, then they subtract the predicted claims they expect to have to pay. This is their business model in a nutshell.

Simple, yet complicated. Because insurance premiums are not a one size fits all proposition. Consumers can expect to pay less if they have a spotless driving record, a bit more if they don’t. They will likely pay more if they have an expensive sports car, a bit less if their vehicle is a trusty old family transport. Drivers in congested urban areas may find they will pay a bit more than if they lived in less densely populated areas of the country.

Like we said, it’s complicated. But we here at General can help you make some sense of getting insurance by making comparative pricing of car insurance a little easier.

Some Information on AAA

The Automobile Association of America, or Triple A, was founded in 1902. It was actually a small group of local auto enthusiast groups who banded together to form a federation. It was early in the automobile era these groups advocated for improvements to highways and roads to accommodate the growing presence of the automobile across the American landscape.

Triple A is a nationwide nonprofit organization providing automobile related services to its over 58 million members. Their rear window or bumper stickers can be seen on virtually every highway across the land, signposts for the organization’s well known emergency roadside assistance benefits. AAA members can count on help if they are locked out of their cars, need towing, have a flat tire, dead battery and other covered circumstances.

In addition, the group also offers auto insurance to its members. They offer standard coverage options such as Collision, Liability, Medical coverage, Uninsured Motorist Coverage, and Rental Car Reimbursements.

Age tier GEICO avg. annual premium Auto Club (AAA) avg. annual premium
Teens $3,508 $10,256
20s $1,438 $4,644
30s $1,218 $4,644
40s $1,189 $3,195
50s $1,160 $3,083
60s $1,065 $2,887

Is AAA Right For You?

Since the organization only offers its insurance to its dues paying members you must be prepared to join them if their insurance package is appealing to you. Annual AAA dues run from $60 to$100 per year.

Secondly, remember that the organization is made up of many member automobile clubs. There is no one national AAA insurance entity to contact - find the club nearest your place of residence.

Do your research by getting a quote from AAA. See for yourself if they stack up well against others before committing to a policy. The General.com online tool can assist you in the process of getting competing prices from multiple carriers so that you can choose the best deal.

Next, Let’s Look at GEICO

GEICO provides auto insurance coverage in all 50 states and the District of Columbia. They are the second largest provider of car insurance in the United States. They cover more than 17 million policy holders and more than 25 million vehicles. Their estimated annual revenue is over $25 billion and they pride themselves on their customer satisfaction. They are a financially sound component of the Berkshire Hathaway holding company conglomerate. Berkshire’s main owner, Warren Buffet, first bought share in GEICO while a Columbia University business school student in New York City in 1951.

Buffet added additional GEICO shares to his investment portfolio in the 1970, and in 1996 acquired all remaining share of the company bringing GEICO fully into the Berkshire family.

GEICO is well known for their humorous advertising spots. From a civilized caveman to a camel reminding office mates that Wednesdays are special, to a hockey playing walrus, GEICO has given consumers chuckles while reinforcing their message that they can save money by merely spending a little time on their research.

Discount Type AAA GEICO
Original Owner Discount Varies --
Low Mileage Discount Varies --
Daytime Running Lights Discount -- up to 3%
Defensive Driver Discount -- Varies
Good Student Discount up to 15% up to 15%
Anti-lock Brake Discount -- up to 5%
Accident Free Discount -- Varies
Emergency Deployment Discount -- up to 25%
Paid in full discount up to 8% --
Passive Restraint Discount -- up to 25%
Farm Vehicle Discount up to 59% --
Affinity group discount Varies --
Loyalty Discount up to 5% --
Federal Employee Discount -- up to 25%
Seat Belt Use Discount -- up to 15%
Organization Discount up to 5% Varies
Student Away at School Discount up to 30% --
Anti-Theft Device Discount up to 17% up to 25%
Multiple Policy Discount up to 12% Varies
Good Driver Discount up to 20% up to 26%
Home Owner Discount Varies --
Driving training discount Varies Varies
Good Credit Discount up to 10% --
New Car Discount up to 10% --
Multiple Vehicle Discount up to 13% Varies
Current insurance discount up to 5% --
Senior Adult Discount -- Varies
Advance shopper discount Varies --
teenSMART Discount up to 24% Varies
Military Discount -- up to 15%

Will GEICO be cheaper?

GEICO provides a wide range of coverage options and each one has different price points. They have standard Bodily Injury and Property Damage Liability, collision, medical coverages many others. Like their competitors, almost none of these levels of coverage come at a single price point. That’s why it’s so important to be a savvy consumer and get competing price quotes before you pull the trigger on an insurer. GEICO is a reputable firm, insuring millions. But they may or may not be able to give you the lowest prices and best service. Compare and save.

AAA vs GEICO – Which Is the Insurer for Me?

The prices you will be charged from either AAA or GEICO will be dependent on a variety of data that will collectively form a driver’s profile of you. Insurers need to know where you reside. Urban risk for drivers is different from rural or suburban risk and is priced accordingly. The length of time you had a valid drivers license is important. Newly minted drivers may have a bit of a higher rate of accidents than seasoned drivers. This is built into your pricing. The make and model of your car is important. Expensive cars may be commensurately more expensive to insure.

The single most important factor is, no surprise, your personal driving record. Having a good record will give you a leg up on getting a good price from AAA or AARP. Or any other vendor, for that matter. That’s why we at General believe it is so important to compare prices. Come to our web site and let us help you compare prices.

The Bottom Line for Car Insurance Savings

The General.com platform was built to give consumers an easy to use, streamlined way to get competing price quotes from auto insurance providers. We can get you side by side, real world price comparisons so that you can determine which car insurance solution is best for you. We can save you money with just a few clicks of our onscreen buttons. Se us now and save now.

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