Geico vs AAA

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is it worth the $56 annual savings to move from AAA to Geico? I do have about 2 claims every year because I have an old car. There's some confusion on other threads that Geico possibly raises premiums after a roadside assistance call even if it's for a flat tire, etc. Can anybody provide some advice?

Thanks

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I have used the road side assistance and they did not raise my premium. - one datapoint.

Do you place any value of the AAA discounts (hotels in particular)? I think a few hotel stays with a AAA rate that gets me 10% off or so has saved more than enough.

I work for Geico and can tell you they will not raise your premium for using the ERS service...especially if it is only 2 times a year

JasonTell7 said: especially if it is only 2 times a yearThat right there is an answer to be concerned about - it certainly implies that more excessive usage may in fact affect insurance premiums.

There should be no question, your use of roadside service should be limited to the membership fee paid for those benefits, period. Best to keep your memberships separate from your insurance policies, so there is no doubt.

hejustlaughs said: Do you place any value of the AAA discounts (hotels in particular)? I think a few hotel stays with a AAA rate that gets me 10% off or so has saved more than enough.You can often get the AAA discount just for asking.

Glitch99 said: JasonTell7 said: especially if it is only 2 times a yearThat right there is an answer to be concerned about - it certainly implies that more excessive usage may in fact affect insurance premiums.

There should be no question, your use of roadside service should be limited to the membership fee paid for those benefits, period. Best to keep your memberships separate from your insurance policies, so there is no doubt.


I have never seen Geico drop anyone for excessive use of road side service, OR increase their premium, but we had a client that used it 24 times in a matter of 60 days, and we dropped the service, NOT them. It did not impact the rate.

Just to add to this discussion --- what about filing claims for things like windshields? I've had to replace two windshields in the last 6 months and already have another 12" crack in one of them (needs to be replaced but will hold out for a while). My comp deductible is $500 so I haven't been filing claims but I was thinking about dropping it. Will they ratejack me for windshields (repairs or replacements)?

Windshield claims do not increase your premiums, nor do MOST comprehensive or not at fault accident claims. Storm damage, mother nature, windshield, should not affect your premium at all. I would suggest getting your windshield fixed before your change insurance companies, because most companies require an inspection for a new policy, and will not cover preexisting damage.

i switched to Geico after really bad service from them when my car got hit by hail. i resisted since i've been a customer for years, even though AAA was cheaper and I didn't feel like paying the membership fee.

Now I wish I had done it much earlier. I never use the AAA discounts or even service, but I get great customer service from my agent and my premiums are significantly lower than Geico, much much much lower. I even call every few months around, but can't get any lower than AAA, which is funny because I told the AAA agent at first that I didn't think he could beat Geico's rates. He did.

So to answer your question: is it worth it for the towing? probably not. the discounts? your mileage may very. the customer service and the lower premiums? YES! (even though I admit your experience may be different).

One thing that I have found extraordinarily useful about AAA is the ability to process many of the basic DMV functions.

With budget cuts here in California, no DMV office is open outside of 8:30-5 M-F (However, most Fridays are closed). In my case the office closest to me has been closed for the whole summer because they are looking to save money.

When I bought a used car the past month, it was a huge benefit to be able to walk into the local AAA on a Saturday and submit the change of ownership papers. No line at all. Didn't have to take time off work.

Does one have to be a AAA member to purchase AAA insurance? If yes, does the same hold for annual insurance renewal (is membership renewal mandatory)?

elgrifo said: One thing that I have found extraordinarily useful about AAA is the ability to process many of the basic DMV functions.

With budget cuts here in California, no DMV office is open outside of 8:30-5 M-F (However, most Fridays are closed). In my case the office closest to me has been closed for the whole summer because they are looking to save money.

When I bought a used car the past month, it was a huge benefit to be able to walk into the local AAA on a Saturday and submit the change of ownership papers. No line at all. Didn't have to take time off work.


My local DMV keeps better hours then my local AAA office, YMMV. AAA will cut you off after 4 and demand more money for more roadside assists.

uutxs said: Does one have to be a AAA member to purchase AAA insurance? If yes, does the same hold for annual insurance renewal (is membership renewal mandatory)?
Membership in AAA isn't required to purchase their insurance, or vice-versa. They are entirely different divisions within the organization. Using the membership benefits for roadside assistance has no effect on your AAA auto insurance premium.

AAA membership and AAA insurance are different, you don't need one for other. also you wont get hotel discounts etc. with AAA insurance.

AAA Insurance:
could be cheaper
can't reach a live human on Sat/Sun, they promptly return you call on Monday morning

Geico:
has very nice website, you can increase/decrease your coverage and see how it affects your premium without calling someone
you can reach them when ever you want. overall very tech savvy (faxing/emailing your id cards etc.)
if you are customer under 6 months they pickup your phone on the first ring (one of the option when you call)

As an aside, I use Allstate's roadside assistance program, yet have auto insurance through USAA. Allstate was very very competitive for what I was looking for on the upper tier of roadside service. I liked that I could pay monthly, and it's only about 14 a month. Lots and lots of benefits at this service level.

OP- Please put "roadside assistance" in your title. thx

delzy said: hejustlaughs said: Do you place any value of the AAA discounts (hotels in particular)? I think a few hotel stays with a AAA rate that gets me 10% off or so has saved more than enough.You can often get the AAA discount just for asking.

Are you talking about hotels/motels where you can negotiate prices over the phone? I'm referring to Sheratons, Westin, Hiltons, etc.

jmel said: As an aside, I use Allstate's roadside assistance program, yet have auto insurance through USAA. Allstate was very very competitive for what I was looking for on the upper tier of roadside service. I liked that I could pay monthly, and it's only about 14 a month. Lots and lots of benefits at this service level.Just out of curiosity, do you really need roadside service that costs $170/year? I am not criticizing your decision in any way, as I have no idea about your situation and am just curious. I suppose that I can see wanting to have something like that if you have an old car that's prone to breakdowns and you either live in a sparsely populated area with no repair facilities nearby or you frequently travel to such locations. Short of that, this just seems like a lot of money to pay, especially if you are primarily buying it to get free towing benefits (you'd have to have at least 2 medium distance tows each year to justify the annual fee).

People need to keep in mind that there are numerous ways to get free or nearly free roadside assistance. For instance, many credit cards provide roadside assistance benefits to their cardholders. The benefits are typically capped at $50-$60 per call, which will typically only be enough for short distance tows, but is still quite decent for a program that doesn't require an additional fee. Likewise, various shopping programs provide similar benefits. Costco's Executive members that have their cars insured through Ameriprise get insurance discounts (the discount is the same for all Costco members, regardless of their level) as well as free roadside assistance (only Executive members get free roadside assistance). If you have a new or a newer car (or an extended warranty on an older car), chances are that your vehicle warranty also includes free roadside assistance and trip interruption benefits.

The list of these programs goes on and on. Hence, unless you are in a fairly unusual situation in which you anticipate consistently needing a number of fairly expensive tows every year, it usually does not make sense to enroll in relatively expensive roadside assistance clubs.

Oh, and as for the hotel discounts offered by programs like AAA, you can usually get the same discounts by just asking for them or by entering AAA discount codes online (the codes are readily available everywhere, including FW). In fact, there are usually much better discounts that are out there than the AAA discounts. This is not to say that programs like AAA don't have worthwhile benefits. Directtv's $10/month off its best nationwide deals for AAA members remains one such benefit.



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