What’s New with AAA Car Insurance?
In July 2023, AAA joined the list of insurers limiting coverage in Florida. Due to the impact of devastating hurricanes and high reinsurance costs, the insurer announced it would not renew auto, home, and umbrella policies for select customers in the state. However, AAA still writes new insurance policies in Florida, primarily focusing on lower-risk areas.
Overview of AAA Car Insurance
AAA, or the American Automobile Association, is not a traditional insurance company. Instead, it operates as a nationwide network of motor clubs offering roadside assistance memberships and auto insurance through third-party underwriters. Each geographic region in the U.S. has its own AAA club, and insurance offerings vary depending on location, making it difficult to provide universal information about AAA’s auto insurance.
AAA car insurance has a mixed customer experience. Despite regional differences, all AAA clubs provide standard coverage options, including bodily injury and property damage liability as required by state laws. Additional coverage options like gap insurance and rental car reimbursement are generally available. In some areas, a AAA membership may be required to purchase an insurance policy, granting access to travel, home maintenance, and other member-exclusive benefits.
Pros and Cons of AAA Car Insurance
Pros:
- Local agents provide personalized service.
- Some regional clubs offer unique benefits tailored to local needs.
- AAA membership perks include discounts on travel and entertainment.
Cons:
- Auto policies are underwritten by third-party insurers.
- Customer satisfaction varies by region.
- AAA roadside membership may be required for coverage.
Cost of AAA Car Insurance
The average annual premium for a full coverage policy from AAA is $2,331, which is 12% lower than the national average. However, rates vary based on geographic location and the insurance provider underwriting the policy. For instance, CSAA Insurance Group, AAA’s insurer in 24 states, has an average full coverage premium of $3,755 per year.
AAA Car Insurance Rates by Driver Profile:
| Driver Profile | AAA Full Coverage Premium | National Full Coverage Premium |
|---|---|---|
| Good driver, good credit | $2,329 | $2,638 |
| Good driver, poor credit | $4,831 | $4,644 |
| Speeding ticket with good credit | $3,155 | $3,204 |
| At-fault accident with good credit | $3,238 | $3,774 |
| DUI conviction with good credit | $4,170 | $5,106 |
AAA Car Insurance Rates by Age
Like most insurers, AAA bases rates on driving experience, with younger drivers generally paying more. Keeping a teenage driver on a parent’s policy can help reduce costs.
| Age | AAA Full Coverage Premium | National Full Coverage Premium |
| 16 | $4,403 | $5,675 |
| 18 | $3,761 | $4,894 |
| 20 | $4,918 | $5,374 |
| 25 | $2,789 | $3,251 |
| 30 | $2,417 | $2,813 |
Comparing AAA Car Insurance Rates
AAA’s average full coverage premium is close to the national average. However, individual pricing can vary significantly. Comparing quotes from multiple insurers is key to finding the best rate.
| Company | Avg. Full Coverage Premium | Avg. Minimum Coverage Premium |
| AAA | $2,329 | $630 |
| State Farm | $2,887 | $911 |
| Progressive | $2,388 | $711 |
| Allstate | $3,297 | $917 |
| USAA | $1,897 | $604 |
AAA Life Insurance Review
AAA Life Insurance, headquartered in Michigan, operates in all states except New York. It offers term, whole, and universal life insurance policies, with term life options available in 10, 15, 20, or 30-year terms. Pricing starts at $8 per month. AAA provides extensive online educational resources, making it easier for consumers to understand their options.
Pros and Cons of AAA Life Insurance
Pros:
- Offers a variety of life insurance products.
- Provides robust educational resources.
- Access to local agents for personalized support.
Cons:
- Only term life policies can be quoted online.
- No J.D. Power satisfaction rating for life insurance.
- Higher-than-average customer complaints based on NAIC reports.
Comparing AAA with Other Insurers
When choosing an insurer, it’s beneficial to compare multiple providers.
| Feature | AAA | Allstate | Farm Bureau |
| Avg. Full Coverage Auto Rate | $2,329 | $3,297 | $2,049 |
| J.D. Power Auto Score | 701/1000 | 691/1000 | Not Scored |
| Avg. Home Insurance Rate | $1,795 | $2,487 | $3,111 |
| J.D. Power Home Score | 862/1000 | 868/1000 | Not Scored |
| AM Best Rating | A (Excellent) | A+ (Superior) | A (Excellent) |
Is AAA a Good Insurance Company?
AAA insurance experiences vary widely based on regional clubs and underwriters. Some providers, like CSAA Insurance Group and the Automobile Club of Southern California, receive positive customer feedback, while others have mixed reviews. Prospective policyholders should research their local AAA insurer and compare quotes to ensure they get the best coverage at the most competitive rate.
Customer Reviews and Satisfaction
AAA customer reviews are highly regional. We analyzed feedback from TrustPilot, Reddit, and other review platforms to gauge satisfaction.
- Positive feedback: Competitive rates, smooth claims experience, and good roadside assistance perks.
- Negative feedback: Rate hikes, difficulty contacting customer service, and policy renewals being denied in certain states.
Conclusion on AAA Car Insurance
AAA auto and life insurance can be a solid option for those already holding a AAA membership, especially if they value access to travel discounts and member perks. However, due to regional variations in service and underwriting, potential policyholders should compare AAA’s offerings with other insurers to ensure they receive the best coverage for their needs.
Want to know more about other insurances, Read our latest articles.
