Updated on: Sept. 27, 2024
Written by: Rob Bhatt Edited by: Bryan Ochalla
AAA is best known for its towing services, but it is also one of the nation’s largest home and auto insurance providers. Its rates are higher than national averages and it gets lackluster ratings and reviews. Still, it’s a good company to contact for insurance quotes if you are a AAA member.
Offers all the basic home and auto insurance coverages
Local agents available to provide personalized service
Discounts available just for being a AAA member
Rates are higher than national averages
Customer service ratings are at or below industry averages
Products and coverages vary by state
Special coverages like gap insurance are only available in a few states
AAA membership required in most states
AAA’s organizational structure makes it a good insurance company in some states and just OK in others.
Its rates are higher than national averages, and its coverages and discounts vary by state. It’s made up of auto clubs from each state or region of the country. Insurance is among many services that each club provides.
Many AAA clubs only sell insurance to AAA members. Clubs that offer insurance to the general public often give AAA members a discount. Membership fees begin at about $50 to $65 a year, depending on where you live.
AAA only offers basic car and home insurance in most states. However, Michigan and Wisconsin are among the states where AAA offers extras like gap insurance.
AAA offers its own line of insurance in most states. However, it acts as an independent insurance agency in a few states and regions. In these areas, AAA sells insurance from other companies, like Progressive and Travelers.
| Rating | AAA’s score | Industry average |
|---|---|---|
| Overall auto satisfaction | 820 | 820 |
| Claims satisfaction | 870 | 878 |
| Auto complaint rating (lower is better) | 0.9 | 1.0 |
| Overall home satisfaction | 810 | 819 |
| Home claims satisfaction | 862 | 869 |
| Home complaint rating (lower is better) | 1.3 | 1.0 |
Sources: J.D. Power, National Association of Insurance Commissioners
AAA’s insurance reviews and ratings lag behind national averages in key categories. Its auto and home satisfaction reviews from J.D. Power are below average. Its complaint rating is higher, or worse, than the industry average for homeowners insurance.
AAA charges an average of $1,520 a year for liability car insurance. This works out to $127 a month. AAA’s full-coverage car insurance rates average $3,835 a year, or $320 a month. Both rates are nearly twice the national average.
| Company | Annual rate liability only | Annual rate full coverage |
|---|---|---|
| AAA | $1,520 | $3,835 |
| Allstate | $1,158 | $2,609 |
| American Family | $728 | $1,920 |
| Farmers | $1,188 | $3,091 |
| Geico | $727 | $1,937 |
| Nationwide | $963 | $2,226 |
| Progressive | $791 | $2,032 |
| State Farm | $597 | $1,487 |
| Travelers | $835 | $1,919 |
| U.S. average | $772 | $1,970 |
Liability car insurance pays for injuries and damage you cause to others in a car accident. Most states require it.
Full-coverage car insurance includes collision and comprehensive, which cover damage to your own car. Neither is required by law, but both usually are required for a car loan or lease.
AAA’s rates are more than twice the national average after a speeding ticket, at-fault accident or DUI.
AAA charges drivers with a speeding ticket an average of $4,925 a year for full coverage, or $410 a month. The average national rate for drivers with a ticket is $2,427 a year, or $202 a month.
| Driving record | AAA annual rate | U.S. average annual rate |
|---|---|---|
| Clean record | $3,835 | $1,970 |
| Speeding ticket | $4,925 | $2,427 |
| At-fault accident | $6,454 | $2,930 |
| DUI | $7,867 | $3,626 |
AAA charges young drivers an average of $4,075 a year for liability-only car insurance, or $340 a month. This is 67% higher than the national average.
AAA’s full-coverage rate for young drivers is 56% higher than the national average.
| Amount of insurance | AAA annual rate | Average U.S. annual rate |
|---|---|---|
| Liability only | $4,075 | $2,433 |
| Full coverage | $9,111 | $5,824 |
AAA offers the standard car insurance discounts that most companies offer. This includes a discount for bundling your homeowners policy with your car insurance. You can usually also get a discount for having a good driving record.
Teen drivers get discounts for getting good grades and completing a driver training program. The types of driver training programs that qualify vary by state.
In about 20 states, AAA offers a discount to customers who belong to an approved car club. This discount is not as common as the others.
AAA offers basic car insurance coverage in most states. The include:
AAA only offers extras like gap insurance in Michigan, Wisconsin and nearly a dozen other states.
You may need gap insurance if the value of your car is less than your loan balance. This is known as upside-down financing. Gap insurance is usually also required for a lease.
AAA charges an average of $3,116 a year for homeowners insurance, or $260 a month. This is 13% higher than the national average.
| Company | Annual Rate |
|---|---|
| AAA | $3,116 |
| Allstate | $2,560 |
| American Family | $3,072 |
| Farmers | $3,801 |
| Nationwide | $3,055 |
| Progressive | $2,648 |
| State Farm | $2,427 |
| Travelers | $3,149 |
| U.S. average | $2,757 |
The discounts AAA offers on homeowners insurance also vary by state or club. You can get a discount for bundling home and auto insurance in any state. In many states, AAA offers a home insurance discount to mature homeowners. You usually have to be at least 50 years old to qualify.
AAA usually also offers discounts for home renovations, but the projects that qualify vary by state.
AAA offers the basic homeowners insurance coverages you need to protect your home and belongings. These include:
The extra home insurance coverages AAA offers vary by state. In some states, it offers service-line coverage. This pays to repair or replace underground water, sewer, power or natural gas lines on your property.
In many other states, it only offers the basics. This makes it hard to get protection for any unique insurance needs you may have.
Standard homeowners insurance from AAA or other companies does not cover floods or earthquakes. Like many of their peers, AAA’s insurance agents can help you get separate insurance for each of these risks.
LendingTree obtains rates from public insurance company filings through Quadrant Information Services. Rates are based on an analysis of thousands of home and auto insurance quotes from multiple states.
Unless otherwise noted, our sample driver is a 30-year-old male with good credit and a clean driving record. Our sample young driver is an 18-year-old male with minimum liability coverage. The sample vehicle is a 2015 Honda Civic EX.
Liability policies include the minimum car insurance coverages required in each state.
Full-coverage policies include:
Homeowners insurance rates reflect the cost of standard policies with these coverages, limits and deductible:
Rates are shown for comparative purposes only. Your rates may vary.
Customer service ratings and reviews are from:
Descriptions of coverages and discounts are based on information provided on AAA websites in California, Massachusetts, Michigan, North Carolina, New York and Washington.
The content above is not provided by any issuer. Any opinions expressed are those of LendingTree alone and have not been reviewed, approved, or otherwise endorsed by any issuer. The offers and/or promotions mentioned above may have changed, expired, or are no longer available. Check the issuer's website for more details.
