The AAA Auto Club was founded in 1902. It is one of the oldest insurance providers in the US, with divisions in every state with headquarters located in Heathrow, Florida. These units operate independently, but they maintain a close collaboration.
AAA offers insurance only to those who are already club members. It sometimes underwrites its policies and sometimes acts like a broker by offering discounts to its members. It offers several types of insurance such as homeowners, life, and auto. We checked many AAA insurance reviews and used our own data to determine where the company ranks in the US car insurance market.
Being a member of the Auto Club isn’t expensive, costing $38–$74 per year for the basic package, and it offers benefits like AAA’s well-known roadside assistance (just call the AAA insurance phone number, which is 800-922-8228, in case of an emergency).
Comparatively, these types of benefits usually cost extra with other insurance companies. There are a total of 51 AAA Auto Clubs in the US, and because they function as independent but closely connected organizations, its prices and the specific details offered by its auto insurance may vary by location.
AAA auto insurance reviews indicate that the rates are usually very competitive, being one of the cheapest on the market. Reports on customer service note that it is well regarded, but not the finest among the competition.
AAA also has a convenient mobile application that can be used to provide digital proof of insurance in case you are pulled over or if you were involved in an accident. The app can also be used to complete a AAA insurance payment or get an insurance quote in some states.
Additionally, claims will be completed within 24 hours, which is guaranteed by the 24-hour claim processing service.
AAA has been in the business for over 100 years, and its financial stability is solid. The company operates through many agencies, and they all have strong A. M. Best financial ratings, ranging from A+ to A-, that is, from Superior to Excellent. Potential customers should not worry that they will not get their money’s worth in case of a damaged vehicle. These ratings indicate that it has the ability to pay all AAA insurance claims in case of an accident.
Types of Insurances Offered
Given that AAA insurance is part of the Auto Club, certain perks that other brokers charge extra for, like roadside assistance, are automatically included with every package. Besides these, AAA has the coverage options commonly found in the auto insurance industry, such as collision and bodily injury, comprehensive, liability, property damage, underinsured motorist, medical, and personal injury coverage.
There are also some noteworthy AAA auto insurance coverage additions, although the company doesn’t offer the variety that some of the competition has in this department.
Keep in mind that particular details may vary depending on the location of your Auto Club office. Sometimes these options will be automatically included, and sometimes it will cost extra.
Check with your local agent to get a AAA insurance quote for all the details.
Rental Car Reimbursement – This coverage pays rental car, public transit, or even ride-sharing expenses while you are waiting for your vehicle to be repaired.
Accident Forgiveness – If you have a record as a safe driver, a single accident will not increase your premium.
Gap Coverage – In case your car suffers a total loss, gap insurance pays the difference between the replacement cost of your vehicle and the amount left on your loan.
Insurance for Non-Owners – In case you drive, but you don’t own a car, AAA auto insurance provides liability coverage.
Pet Injury Coverage – If you travel with your pet and it gets injured in a car accident, this option covers the veterinary expenses up to $500.
Custom Modification Coverage – In case you have modified your car, perhaps by installing a cool-looking bumper or a fancy new audio system, this option covers the damage to the extra equipment added to the vehicle.
Rental Car Coverage – This option offers to cover damage to a rental car in case of an accident.
AAA Insurance Customer Service
The company’s score varies from average to excellent when it comes to satisfaction with customer service. The Better Business Bureau gives it the average score of an “A,” with some clubs getting the highest possible, A+.
AAA also receives fewer negative reviews and complaints than a regular company of its size, which is indicated by its complaint rating of 0.55, awarded by the National Association of Insurance Commissioners.
The AAA insurance rating by J.D. Power, which conducted comprehensive research into claims satisfaction and insurance shopping, is an average 3 out of 5 stars in both categories.
It should be noted that there are many negative reviews on websites like ConsumerAffairs and USInsuranceAgents, with customers complaining about the low quality of towing services, increases in premiums, and unprofessional customer representatives.
This should be taken with a grain of salt given the fact that if everything went smoothly, a customer will often not take the time to leave a review, while if the experience was overwhelmingly negative, they would certainly complain.
AAA Insurance Discounts
We should note that reviews highlight that the discounts offered by them vary depending on your location, and some discounts may not be available at all in your area. With that in mind, AAA’s insurance discounts are not small in number, and it can also bring down the price of your car insurance significantly. To verify the discounts available in your location and any other details, we recommend you call the service number.
Discount Reviews For AAA Auto Insurance
Safe Driver Discount – If you have a good driving record, you can save up to 20%.
Bundle Discount – If you are buying homeowners or life insurance through AAA as well, you can save up to 20% on your premium.
Multiple Vehicles Discount – If you insure two or more vehicles, you can save up to 27%.
Mileage Discounts – If you provide accurate mileage readings upon request, you are eligible for up to a 19% discount. According to numerous AAA reviews, you can also receive up to 12% off if your odometer confirms low mileage.
Discount for Loyalty – If you have been insured with AAA for at least one year with no reported claims, you can save around 5%. You can also get up to 12% off in discounts if you’ve had continuous coverage with your previous insurance provider for three or more years without a claim.
Advanced Purchase Discount – If you are renewing your car insurance policy and you complete a payment at least seven days before the old policy expires, you can save 5% off your premium.
Discount for Paying in Full – If you pay the premium in full at the start of the term, a discount of 5% is given.
Good Student Discount – Another plus mentioned in some AAA insurance reviews is if you are a young driver with good grades, you can save up to 15% on your premium.
AAA OnBoard Discount – AAA installs a device in your car that monitors things like sudden braking and acceleration to determine how safely you drive. If you meet the criteria, the discount ranges from 10% to 20%. Progressive insurance has a similar option. For AAA, this is only available in Texas.
Glass Deductible Discount – AAA requires no deductibles for any car window replacement or repair, compared to most other providers who require deductibles for glass replacement but not repairs.
About AAA Insurance Rates
Our rate comparison, gathered from the most reliable auto insurance reviews, shows that the company’s prices fall into the cheaper end of the spectrum. For a 20-year-old male driver, AAA’s price is $57 more than that of Progressive, the most affordable option.
For a 20-year-old female driver, the difference is only $30. And for categories that are traditionally perceived as safer drivers, like a couple in their 30s, AAA car insurance also offers very competitive rates. If the couple has no tickets, the monthly rate is $194, which is $41 more than the cheapest option, and if the couple has one ticket, the monthly rate is $230, which is $47 more than the cheapest option.
We did our research by getting a quote for a 40-year-old driver, and we found that AAA rates score very close to the average. The monthly premium offered by AAA was $237, which is extremely close to the total average of $235, found when we tested more than 15 insurance companies that offered an online quote option.
Overall, taking into account the AAA insurance cost, it may not be the best choice for those looking to get the cheapest deal (check Progressive, Geico and Erie), but its rates still belong on the competitive side of the market.
AAA Compared to its Competitors
AAA vs Allstate
Allstate has a slightly better financial rating at A+, while AAA’s financial rating ranges from A- to A+, depending on the branch. Both AAA and Allstate have average customer service ratings per J.D. Power for claims satisfaction, while Allstate has a below-average rating for shopping satisfaction. Both options are available in all US states. Allstate also has its motorist club, which provides similar benefits to what AAA offers.
AAA vs State Farm
State Farm is a significantly more expensive option than AAA. On the other hand, it has the best possible financial rating, while AAA insurance reviews score slightly lower than average. However, both are good enough that you should not worry that you won’t be covered in case of a claim.
State Farm does offer wider coverage options, being one of the largest auto insurance providers in the US. However, AAA is usually cheaper, and those perks of being a member of the AAA club should not be taken for granted.
Both State Farm and AAA car insurance claim and shopping reviews have the same average scores when it comes to customer satisfaction. Concerning overall performance, AAA is ranked third while State Farm is ranked eighth in NerdWallet’s ranking. Basically, the two are close, and your choice will have to depend on what you want out of your car insurance company.
AAA vs Travelers Insurance
Travelers has a “superior” financial rating, while AAA ranges from “excellent” to “superior.” It also offers more coverage options, including ridesharing coverage. Travelers is rated as sixth in Nerdwallet’s comprehensive review, while AAA is rated as third.
Looking at other AAA reviews, The Travelers and AAA customer service ratings are both average or slightly above the average, and they both have 3 stars in their J.D. Power reviews. Altogether, it seems that AAA is a better option looking for basic coverage if the state you are located in offers reasonable prices.
Price wise, Progressive offers rates that are lower than those of AAA. Erie has better customer service and it also has very low rates; however, it is unfortunately available only in a small number of states. AAA, however, offers customers the unique combination of being an Auto Club member and enjoying an affordable premium.
AAA auto insurance reviews provided by the BBB have assigned it the average grade of “A” for customer satisfaction. In addition, J.D. Power gives AAA 3 out of 5 stars in both the claims handling satisfaction and shopping categories. The Automobile Club Group is also rated at third place out of 23 tested in the rankings of the best insurance providers in the US by NerdWallet.
The reputable site, ValuePenguin gives AAA 3.5 stars out of 5, while Finders also gives a favorable review, listing more advantages than disadvantages. As you can tell, this company is a very good option.
People Also Ask
Is AAA a good insurance company?
Yes, AAA is a good insurance company. It is financially solid, has competitive prices, reliable customer service, and good coverage.
However, its most important features are the famous roadside assistance and the benefits you get from being a member of the AAA club – discounts with well-known brands, hotels, rent-a-car agencies, airlines, etc.
The quality of the insurance policy you get also depends on the region and the type. AAA writes just a part of the policies it sells, and it acts as a broker for the rest of them.
Why is AAA insurance so cheap?
AAA car insurance is cheap because the company provides its users with a wide array of discounts, and virtually anyone can be eligible for at least one of them. You can bundle your insurance, get good driver discounts, etc. Keep in mind that AAA doesn’t underwrite all of the policies it sells. In many regions, it’s just agents for third-party insurance companies. This can affect the price considerably.
Is AAA insurance better than State Farm?
The main difference is the size- State Farm is one of the largest car insurance companies in the US. Being larger doesn’t necessarily make it better, though. It’s hard to say which company is better because it depends on clients’ preferences and situation. AAA is generally cheaper, and it provides many additional discounts with different brands. Both companies have similar customer satisfaction scores, but State farm is slightly better when it comes to financial rating.
What does AAA auto insurance cover?
In general, AAA offers collision, comprehensive, liability (bodily injury and personal property), personal injury protection, medical payments, etc. Keep in mind that this may vary from state to state because AAA insurance doesn’t come from only one company – it sells insurances from third-party insurance companies. Check with your local office (Auto Club of Southern California, CSAA Insurance Group, and Automobile Club Group) what insurances it offers before committing.
What does AAA comprehensive coverage offer?
The comprehensive AAA car insurance is optional and offers coverage if your vehicle gets stolen or damaged by fire, vandalism, glass breakage, windstorm, and contact with an animal. The insurance will cover any repairs or pay the actual car value if totaled (minus the deductible). You should check with your local office if comprehensive coverage is available in your region.
How much does AAA full coverage insurance cost?
AAA’s average full coverage premium is $1,948 a year, which comes to around $162 a month. You also have to be a member of the AAA association, which will cost you $38 – $74 a year.
To put things in perspective, the average annual full coverage premium in the US is $1,674 per year or $139.50 per month.
Keep in mind that the actual price you will pay may differ significantly from these average values because the company determines it based on many different factors.
Many AAA insurance reviews forget to mention this fact, and it results in many confused customers.