Geico Vs Aaa: Best Home Insurance?

GEICO and AAA are two of the most popular insurance companies in the United States, both offering auto and home insurance. But which is better for house insurance?

Customer service ratings

When it comes to customer service ratings, GEICO and AAA have some similarities and differences. Both companies frequently rank high for stellar customer service and claims processing speed. However, the quality of customer service can depend on location, especially for AAA. This is because AAA is a collection of different automobile clubs that service different regions in the US. For example, in J.D. Power's 2023 Auto Insurance Study, customers in California, Texas, Florida, and the Southwest were more satisfied with AAA than in other regions, while customers in New England were generally more satisfied with GEICO.

GEICO has 24/7 customer service for all issues, while AAA only offers 24/7 customer service for claims. AAA also splits the country into regions, making it difficult to find the right person to talk to about an issue. This lack of consistency across offices makes it challenging to determine how the company operates as a whole.

GEICO has a customer satisfaction score of 843 out of 1,000, slightly higher than the industry average. AAA, on the other hand, operates under many different names, so it doesn't have just one J.D. Power score. Its scores range from 842 to 811, all of which are lower than GEICO's, giving GEICO the advantage in this category.

According to the National Association of Insurance Commissioners (NAIC) compliance report, GEICO has a rating of 2.04, indicating that it has more than double the average number of complaints. In contrast, AAA has an NAIC rating of 0.58, which is almost half the national average, making it the clear winner in terms of customer complaints.

Overall, while both companies have their strengths and weaknesses when it comes to customer service, GEICO seems to have a slight edge in terms of customer satisfaction scores and 24/7 availability. However, AAA shines when it comes to handling customer complaints and varies depending on the region.

Discounts

GEICO Home Insurance Discounts

GEICO offers a Multi-Policy Discount for Your Home and Auto Insurance. By bundling your home and auto insurance or your auto and renters insurance with GEICO, you can save time and money. They also offer a Multi-Vehicle Insurance Policy Discount if you have other insurance policies with them.

GEICO also offers a range of discounts on their car insurance policies, including:

• Multi-Policy Discount
• Membership and Employee Discounts
• Insurance Discounts and Premium Reductions for the Military
• Discounts and Premium Reductions for Federal Employees
• Insurance Discounts and Premium Reductions for Students
• Defensive Driving Discounts & Courses by State
• Senior Citizen Discount

AAA Home Insurance Discounts

AAA offers a 5% discount on home insurance for AAA Members. You can also save big when you bundle your policy with car insurance. They also offer additional insurance options for pets, boats, mobile homes, motorcycles, and RVs.

AAA also offers a range of discounts on their car insurance policies, including:

• Up to 10% discount for enrolling in their safe driving program called SMART trek
• Discounts based on your method of payment and policy types, especially if you're insuring more than one car and bundling

Financial stability

When it comes to financial stability, GEICO has the edge over AAA. GEICO has received the highest A++ rating for financial strength from A.M. Best, an independent analyst of the insurance industry. This superior rating indicates that GEICO is one of the most financially secure insurance companies in the country, with assets of more than $32 billion. In comparison, AAA has received an A rating from A.M. Best, which indicates stable finances, but is a step below GEICO's rating.

GEICO's financial strength is further demonstrated by its ratings from other agencies. Standard and Poor's (S&P) has awarded GEICO affiliates an AA+ rating for financial strength and the coveted Security Circle designation, reflecting a rigorous review process and top ratings. GEICO's financial stability is also reflected in its low premiums, offering some of the most affordable rates among major carriers.

While AAA's financial stability may not be as highly rated as GEICO's, it is still considered stable and reliable. AAA, as part of the American Automobile Association, has been in business for over a century and is associated with stability and peace of mind by millions of Americans. AAA Life Insurance Company, in particular, has an A (Excellent) rating from AM Best as of September 2023, reflecting its ability to meet ongoing insurance policy and contract obligations.

Both GEICO and AAA demonstrate financial stability and the ability to meet their financial commitments. However, GEICO's higher ratings from A.M. Best and Standard and Poor's indicate a stronger financial position and greater resources to pay claims and expenses in the future.

Online tools

When it comes to online tools, GEICO is the clear winner. GEICO's focus on online service means that customers can access their policies or pay their bills at any time of the day. They can even make online premium payments without logging into the system.

AAA, on the other hand, offers online quotes and policy access, but because the company is split into multiple regional companies, there is no single website where customers can access general information about auto insurance quotes in their area.

GEICO's mobile app, which includes the DriveEasy safe driving app, also has better ratings than AAA's. GEICO's app is rated 3.5 out of 5 stars on Google Play and the Apple Store, while AAA's Auto Club app is rated 4.7 on the Apple Store and 4.3 on Google Play.

GEICO also comes out on top in WalletHub's ratings, which take into account the ease of use of online tools and mobile apps.

Customer satisfaction

When it comes to customer satisfaction, GEICO and AAA have received mixed reviews.

GEICO is the second-largest auto insurer in the US and is known for its affordable rates and wide-ranging coverage options. It generally receives good customer satisfaction ratings and has a rating of 4.4/5 from WalletHub editors. However, the average user rating on WalletHub is lower at 2.3/5, with some common complaints being auto insurance rate increases and slow claim response times. GEICO also has more than double the average number of complaints lodged with the National Association of Insurance Commissioners (NAIC).

On the other hand, AAA is a not-for-profit membership organisation that offers insurance options, roadside assistance, and travel planning services. WalletHub editors give AAA a rating of 3.4/5, while the average user rating is 2.3/5. AAA has received more complaints than the average car insurance provider its size, with customers citing poor customer service and delayed claims payments. However, AAA has significantly fewer customer complaints than GEICO, with an NAIC customer complaint ratio of 0.58 compared to GEICO's score of 2.04.

In terms of J.D. Power customer satisfaction scores, GEICO scored slightly higher than AAA, with a rating of 843/1000 compared to AAA's scores of 842, 811, and 811 for three of its entities.

Overall, both GEICO and AAA have their strengths and weaknesses when it comes to customer satisfaction. While GEICO offers more affordable rates and a wider range of coverage options, AAA has significantly fewer customer complaints and provides additional benefits as part of their standard coverage.

Frequently asked questions