For over a century, AAA has been a stalwart advocate for driver and passenger rights, evolving into a multifaceted organization offering not only roadside assistance but also insurance services. In this AAA Car Insurance review, we'll delve into the intricacies of what makes AAA stand out, exploring its pros and cons, coverage options, pricing details, and how it compares with competitors. Whether you're a loyal AAA member or a prospective policyholder, this guide aims to provide valuable insights to help you make informed decisions about your car insurance needs.
AAA Car Insurance: Pros and Cons - A Balanced Overview:
| Pros | Cons |
|---|
| May receive an auto insurance discount for being a member of AAA. | Insurance products differ depending on where you live. |
| Multiple insurance products offered. | May require AAA membership. |
| You may have to change AAA insurance providers if you move states. |
About AAA:
Founded more than a century ago, AAA ranks No. 4 for customer loyalty, showcasing a rich history in advocating for safer vehicles. However, despite its strong ties with members, AAA's rates tend to be higher than many competitors.
Coverage Options
When it comes to coverage, AAA's offerings vary based on your location, and they derive from separate companies operating in different states. Here are some coverage options commonly provided by AAA:
- Uninsured Motorist Protection
- Medical Payments Coverage
- Comprehensive Coverage
- Collision Coverage
- Additional Coverage Types (may vary by state):
- Gap Insurance
- OEM Exterior Repair Coverage
- New Car Replacement
- Better Car Replacement
- Rideshare Insurance
Coverage Costs:
Understanding the cost of coverage is crucial. AAA's rates for high coverage are the third-highest overall, with an average annual rate of $2,096 compared to the national average of $1,643. It's essential to note that drivers with higher coverage pay approximately $450 more than the national average.
| Company | Rate for High Coverage | National Average for High Coverage |
|---|
| AAA | $2,096 | $1,643 |
How Much Is AAA Car Insurance?
While AAA's average annual rate of $1,958 is higher than many other companies featured in this study, it's not the highest. AAA is 27% higher than the national average rate of $1,547. Here's a breakdown of AAA's average annual rate compared to other prominent companies:
| Rating | Average Annual Rate | Savings vs. National Average Rating |
|---|
| AAA | $1,958 | 4.0 |
| USAA | $1,022 | 4.4 |
| American Family | $1,383 | 4.3 |
| State Farm | $1,279 | 4.2 |
| Geico | $1,250 | 4.1 |
| Nationwide | $1,473 | 4.1 |
| Farmers | $2,078 | 4.0 |
| Travelers | $1,355 | 4.0 |
| Allstate | $2,135 | 4.0 |
| Progressive | $1,540 | 3.9 |
AAA vs. Competitors
AAA vs. Allstate:
Both AAA and Allstate share similarities in terms of rates, positioning themselves with higher rates overall. This includes drivers with specific circumstances, such as a DUI or poor credit. While AAA is tied at No. 4 with Geico for customer loyalty, Allstate is at No. 6. However, both companies fall towards the bottom when it comes to customer service and claims handling.
| Company | Average Annual Rate | Savings vs. National Average |
|---|
| AAA | $1,958 | -$411 |
| Allstate | $2,135 | -$588 |
AAA vs. Progressive:
Progressive emerges as a more budget-friendly option compared to AAA, with AAA's rates being over $400 higher on average. AAA has higher rates for drivers with a DUI or poor credit, while Progressive contends with the second-highest rates for teen drivers. In terms of customer loyalty, AAA customers exhibit higher loyalty compared to Progressive.
| Company | Average Annual Rate | Savings vs. National Average |
|---|
| AAA | $1,958 | -$411 |
| Progressive | $1,540 | $7 |
Conclusion
In conclusion, AAA Car Insurance offers a range of coverage options with the added benefit of potential discounts for members. However, its rates are notably higher than many competitors, and the necessity of AAA membership for certain insurance products might be a drawback for some. When considering AAA, it's essential to weigh the pros and cons, understand the coverage offered, and compare the costs with competitors to make an informed decision that aligns with your specific needs and preferences.
