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AAA vs Travelers
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The American Automobile Association (AAA) was founded in 1902 and provides auto and homeowners insurance policies as well as roadside assistance and driver education materials. Insurance policies for AAA members are underwritten by different companies depending on the region and AAA club.
Travelers Insurance issued the first auto insurance policy in the U.S. in 1898. Travelers remains one of the largest auto insurance carriers in the country, holding 2 percent of the market share. Travelers offers a wide range of insurance products, with some specialty coverage options like gap insurance and new car replacement.
AAA | Travelers | |
---|---|---|
Bankrate Score | 3.4 | 4.2 |
Tier 1 | 3.5 | 4.3 |
Tier 2 | 2.5 | 4.0 |
Tier 3 | 4.3 | 4.3 |
Our verdict
Both AAA and Travelers offer a range of auto insurance products that are available in most states. That said, Travelers does tend to have lower average rates and may include more coverage options depending on which AAA club you are in. Still, Travelers has a somewhat more limited range of coverage than AAA does as a whole.
AAA vs Travelers comparison
When comparing AAA vs. Travelers, it may be helpful to consider the pros and cons of each. Below, we compare some key perks and drawbacks of each carrier.
AAA pros and cons
Pros
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Extra perks and discounts may be available to members
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Available in all states
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Offers an array of additional services including roadside assistance and notary services
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Home and life insurance are also available
Cons
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Membership is required for some services and discounts
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Different clubs may have different coverage availability and underwriters
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Average full and minimum coverage rates are higher than the national average
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Scored slightly lower than the segment average in J.D. Power’s 2023 U.S. Auto Claims Satisfaction Study
Travelers pros and cons
Pros
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Extensive potential policy customization options
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Average rates are below the national average for full and minimum coverage
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Hybrid/electric vehicle discounts available
Cons
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Not available in every state
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Scored below industry average on customer claims satisfaction with J.D. Power
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Coverage options are limited by state
Is AAA cheaper than Travelers?
Travelers offers cheaper average premiums than AAA for full and minimum coverage, according to 2023 rate data provided by Quadrant Information Services. Average rates may help you determine which carrier could offer you cheap rates, but actual rates vary by individual and may vary greatly based on several factors including driving record, vehicle type, location and more.
Car insurance company | Average annual premium for full coverage | Average annual premium for minimum coverage |
---|---|---|
AAA | $2,562 | $681 |
Travelers | $1,551 | $495 |
Travelers is generally cheaper for drivers with poor credit
In most states, credit-based insurance scores are often incorporated into auto insurance underwriting to help insurers determine potential risk levels for drivers. California, Hawaii, Massachusetts and Michigan all forbid the use of credit ratings by insurance companies.
Credit tier | AAA | Travelers |
---|---|---|
Poor | $5,470 | $2,423 |
Average | $5,470 | $1,672 |
Good | $2,562 | $1,551 |
Excellent | $2,162 | $1,374 |
Travelers is generally cheaper for young drivers
Along with your credit, insurance carriers in most states may also determine your rates based on your age. Certain age groups are considered riskier to insure than others — especially teenagers and senior citizens. Teen drivers have a car accident rate roughly four times the rate of other age groups. For this reason, teenage drivers will usually pay much higher rates. The following table outlines how rates from AAA and Travelers compare for young drivers. These rates are full coverage premiums for young drivers on their parents’ policy.
Age | AAA | Travelers |
---|---|---|
Age 16 | $5,339 | $3,813 |
Age 17 | $4,932 | $3,300 |
Age 18 | $4,640 | $2,936 |
Age 19 | $4,197 | $2,493 |
Age 20 | $4,008 | $2,388 |
*Rates are based on young drivers added to their parents’ policies.
Travelers is generally cheaper for adult drivers
As drivers age, they tend to see progressively cheaper auto insurance rates until their 60s. Below are annual average rates for full coverage policies from AAA and Travelers across various age groups. Rates are for adults on their own policy.
Age | AAA | Travelers |
---|---|---|
Age 18 | $6,706 | $5,932 |
Age 25 | $3,067 | $1,765 |
Age 30 | $2,620 | $1,647 |
Age 40 | $2,562 | $1,551 |
Age 60 | $2,246 | $1,407 |
*Rates for adult drivers on their own policies.
Travelers is generally cheaper for high-risk drivers
Your driving record is one of the most significant factors that may affect your insurance premium. Traffic violations, like speeding tickets and at-fault accidents, are penalized differently by different providers, with more serious infractions typically resulting in more severe penalties. The table below illustrates how average rates differ between AAA and Travelers after different infractions. Depending on the violation, insurers may not offer coverage. For instance, insurers may refuse to cover drivers with DUIs on their records. Rates listed for violations do not guarantee that that company will offer coverage to a high-risk driver.
Driving record | AAA | Travelers |
---|---|---|
Clean driving record | $2,562 | $1,551 |
Speeding ticket conviction | $3,131 | $2,019 |
At-fault accident | $3,717 | $2,149 |
DUI conviction | $5,569 | $3,038 |
AAA vs Travelers: discounts
AAA and Travelers both offer several potential discounts for policyholders, although available AAA discounts may vary widely by club. Both carriers advertise bundling discounts for buying multiple policies from the same company, and both offer variations of safe driver and good student discounts. We’ve highlighted some of the more unique discounts from each carrier that may help you save on your premium.
AAA unique discounts
- Multi-vehicle discount: By insuring two or more vehicles with AAA auto insurance, you might save on your premium.
- Multi-policy discount: Carrying more than one policy with AAA, like auto, home, life or watercraft insurance, could save you money on your car insurance premium.
- Good student discount: Students who maintain a “B” average or higher may save on select auto insurance coverage through AAA.
- AAA membership discount: AAA members may be eligible for automatic discounts.
Travelers unique discounts
- Multi-policy discount: When car insurance policyholders also carry home or condo insurance through Travelers, they might save on their auto insurance policy.
- Continuous insurance discount: If you don’t have any gaps in your coverage history, you may be eligible for a discount.
- New car discount: Travelers rewards drivers of newer, safer vehicles by providing them with potential savings on their premium.
- Hybrid and electric car discounts: Drivers of hybrid and electric vehicles may be eligible for a discount.
Usage-based insurance comparison: AAA vs Travelers
Both AAA and Travelers offer telematics programs that may allow drivers to save based on their real-life driving patterns. These usage-based programs monitor driving, often in real-time, and use that data to evaluate the relative safety of drivers. Below you can find a brief comparison of the two programs: AAADrive and Travelers IntelliDrive.
AAADrive | Travelers IntelliDrive | |
---|---|---|
Telematics device | App | App |
Monitored driving factors | Start and end time, location, accelerometer data, mobile phone use | Time of day, speed, acceleration, braking, phone use |
Potential impact on rates | Decrease | Decrease or Increase |
Potential discount | Up to 25% | Up to 30% |
Availability | Select states | Select states |
AAA vs Travelers: customer experience comparison
For many drivers, customer service is as important as price when it comes to choosing an auto insurance company, and mobile tools may be a big factor in the modern customer experience. For this reason, we’ve pulled comparisons of Google Play and iOS mobile app ratings for each carrier, as well as J.D. Power scores from the J.D. Power 2023 U.S. Auto Claims Satisfaction Study. For reference, the segment average for the J.D. Power study is 878/1,000.
Customer satisfaction | AAA | Travelers |
---|---|---|
App Store | 4.7 out of 5 | 4.7 out of 5 |
Google Play | 4.6 out of 5 | 3.5 out of 5 |
J.D. Power | 870 / 1,000 | 871 / 1,000 |
Bankrate’s insight: AAA disclosure
AAA is composed of 32 regional motor clubs. Since each club operates independently of the other, customer service, coverage options and claim experience vary. To accurately reflect the “average” customer experience, the J.D. Power score mentioned in this article is the combined average from the three biggest AAA motor clubs: Auto Club of Southern California Insurance Group, CSAA Insurance Group and Automobile Club Group.
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Age: Rates were calculated by evaluating our base profile with the ages 18-21 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
Bankrate Scores
Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
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Cost & ratings 50%
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Coverage & savings 30%
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Support 20%
Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlight where they fall short.