Depending on where you are in the US, you can expect to pay drastically higher or lower prices for auto insurance coverage. Differences in state-required minimum protections, such as Michigan or Florida no fault laws, create differences that translate to much higher (or lower) premiums.
For example, according to a Business Insider survey of auto insurance prices by state, drivers in Idaho can pay as little as $680 dollars annually. However, drivers in Michigan can pay up to $8,723 dollars per year. The average rate across the US is $1,566 dollars annually.
Those differences account for anomalies, such as places where nation-wide trends don’t hold.
Unique Southwest Rates
While prices for GEICO are generally lower across a number of factors, there are exceptions. Namely: auto insurance rates in the southwest of the country buck some of the trends established above. There, AAA can be cheaper than GEICO.
According to a survey2 of insurance prices in California, Arizona, and Nevada, here’s how AAA and GEICO prices stack up, by age:
- For drivers aged 18-25 in the southwest:
- GEICO’s average annual rate is $2,788 dollars
- AAA’s average annual rate is $2,202 dollars
- For drivers aged 30-60 in the southwest:
- GEICO’s average annual rate is $4,888 dollars
- AAA’s average annual rate is $4,324 dollars
- For drivers aged 60+ in the southwest:
- GEICO’s average annual rate is $4,698 dollars
- AAA’s average annual rate is $4,060 dollars
Relative to GEICO, AAA auto insurance is much cheaper in these particular states.
Variance like this is why it’s so important to research each auto insurer’s coverage options diligently. Understanding why insurance costs what it does in a state is key to understanding what’s the best deal.
The Sunshine State
In contrast, let’s return to the example of Florida.
Florida is a great example of where the GEICO vs AAA debate is arguably a non-starter. Because of the high minimum car insurance Florida requires, Floridians pay the fifth highest premiums across the nation.
And while GEICO is one of the more affordable options available in Florida, AAA is not. According to one study3, GEICO is one of only a handful of insurers that offers rates below Florida’s average for minimum and full coverage:
- Florida average annual premiums:
- $2,050 dollars for minimum coverage
- $3,125 dollars for full coverage
- GEICO average annual premiums:
- $984 dollars for minimum coverage
- $2,221 dollars for full coverage
Even the cheapest car insurance in Florida is still relatively expensive. But it’s worth noting that AAA insurance is nowhere to be found on the list of affordable options in Florida.