AAA insurance review 2021

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What is AAA? The American Automobile Association formed in 1902, when fewer than 25,000 cars occupied American roads. Throughout its history, AAA has worked tirelessly to improve safety, producing driver textbooks and advocating for pedestrian protection.

Today, you can rely on a AAA membership for much more than tire changes and towing. AAA also offers members auto, home and life insurance. If you are in the market for coverage, read our AAA insurance review and learn why it is worth a call to get a AAA insurance quote.

AAA car insurance

AAA is best known for automobile coverage. A AAA auto insurance policy offers drivers a wide variety of auto coverages.

Types of coverage

  • Bodily injury liability: This is generally required before you can drive legally. It pays for funeral expenses, loss of income and medical expenses of other people if you are at fault in an accident.
  • Property damage liability: This is coverage to pay for the repair or replacement of another driver’s car or other types of property when you are at fault for an accident.
  • Uninsured and underinsured motorist: This is to pay the medical expenses of you and your passengers if you sustain injuries in an accident caused by a driver who has no insurance or insufficient coverage. Many states require drivers to carry uninsured and underinsured motorist insurance.
  • Medical payment coverage: This will help pay the hospital and medical costs of you and your passengers if you are involved in an accident, regardless of who is at fault.
  • Collision coverage: This is to repair or replacement of your vehicle, regardless of who is at fault for an accident. If you finance your car, your lender likely will require collision insurance.
  • Comprehensive insurance: This pays for repairs to or replacement of your vehicle if someone steals it or it sustains damage not caused by a collision.
  • Personal injury protection: This will pay the costs of essential services, funeral expenses, lost income and medical expenses of you and your family following an accident. PIP insurance pays regardless of who causes an accident. AAA does not offer PIP insurance in all states.
  • Rental reimbursement coverage: This pays for a rental car while yours is in the shop following an accident.
  • New car coverage: This insurance makes up for the depreciation value when replacing a totaled car following an accident.

Cost of AAA car insurance

When insuring your vehicle, you have several options, but two of the most basic are minimum coverage, which meets the government’s rules for how much insurance you have to have, and full coverage, which adds higher coverage limits as well as comprehensive and collision coverage. Bankrate’s findings on the average cost of AAA car insurance is:

Average annual premium for minimum coverage Average annual premium for full coverage
$625 $2,003

Discounts

  • AAA auto club members: Members may qualify for a membership discount. In some states, AAA membership entitles policyholders to special rates, rather than a discount.
  • Advanced shopping discount: New members may be eligible if they purchase a policy more than seven days before the coverage begins on a vehicle previously covered by another policy for at least six continuous months.
  • Bundle discount: When you choose AAA for your homeowners insurance, you could receive a Companion home discount on your car insurance.
  • Distant student discount: The discount applies to students ages 15 to 25 who go away to boarding school or college and leave the car behind.
  • Good student discount: Full-time college and high school students who maintain a 3.0 or higher GPA may qualify for a discount.
  • Loyalty discount: This rewards customers for consistently renewing their policies.
  • Multi-car discount: When you insure more than one vehicle with AAA, you may qualify for a discount.
  • Paid-in-full: Paying your full car insurance premium with one payment could earn you a discount.
  • Teen Smart discount: Young drivers who complete a qualified driving course before their 19th birthday may qualify for a discount.
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AAA home insurance

Check out our AAA home insurance review if you are not familiar with the company as a home insurance provider. The carrier has some coverages and discounts worth noting. A AAA home insurance policy can cover the costs of repairing or replacing your home if it sustains damage caused by a storm or fire. AAA also offers additional coverages to provide added protection for your home and its contents.

Types of coverage

  • Other structures: This coverage adds protection to detached structures on your property, which could include fences, garages, sheds or swimming pools.
  • Personal property policy: This insures your home’s contents such as appliances and furniture. You may also choose to increase the liability of a personal protection policy to cover high-value items.
  • Loss-of-use: This can help offset the cost of hotel expenses or a rental home if your house becomes uninhabitable following a covered loss.
  • Personal liability: This can help pay the medical or property damage costs of someone else if a calamity occurs on your property.
  • Medical payments: This can cover the medical costs of other people when you are at fault for their injuries.

Cost of AAA home insurance

The average cost of home insurance from AAA for a $250,000 dwelling is $1,440. However, your rate may vary based on where you are located and the number of discounts you are eligible for.

Discounts

  • Annual prepayment: If you pay your entire homeowners premium in one payment, you may earn a discount.
  • Bundling discount: AAA auto club members might qualify for a 5% discount on a homeowners policy and customers with multiple policies can save up to 25% when bundling multiple policies.
  • Claims free: If you do not file a claim for several years, you may qualify for a further premium reduction.
  • New homeowners: Homeowners who take out a new loan to buy a house may qualify for a new loan discount on homeowners insurance.
  • Roof replacement: When you replace your roof, you may qualify for a discount on your homeowners insurance.
  • Senior citizens: People may qualify for a Mature policyholder discount on their homeowners premium.

AAA life insurance

AAA introduced life insurance in 1969 and the good news is, you do not need to be a AAA member to buy a policy. However, members do receive an exclusive discount on their life insurance, which may make it worth your while to sign up for membership and pay the small fee. AAA provides the traditional policy offerings you would expect from a life insurance company.

Types of policies offered

  • Standard term life
  • Express term with no medical exam
  • Standard whole life
  • Guaranteed whole life
  • Universal life insurance

AAA ratings, reviews, customer satisfaction and complaints

Type of insurance J.D. Power 2020 Rating AM Best Rating Better Business Bureau Grade
AAA Auto Insurance 867/1,000 A+ C-
AAA Homeowners Insurance 842/1,000 A+ C-
AAA Life Insurance NR A A+

Reasons AAA is a great option

AAA car insurance shines brightest when coupled with a AAA auto club membership and bundling in other insurance products, such as life insurance or homeowners insurance to maximize savings. Club membership provides three levels of benefits, all of which include no-cost towing, fuel delivery, locksmith service, battery installation, member-only discounts, identity-theft monitoring and many more perks, depending on the level of membership you choose.

Even if you do not bundle more than one insurance policy, buying a AAA home insurance policy or one of its life insurance offerings is a good choice. AAA has no-medical-exam coverage, as well as traditional options. As for homeowners insurance, it is highly rated and affordable, thanks to the number of discounts you can take advantage of.

Additional policies offered by AAA

AAA Insurance offers much more than car and home coverage. Additional types of policies include:

  • Condo and renters insurance
  • Earthquake and flood insurance
  • Motorcycle insurance
  • Insurance coverage in Mexico for people who travel there in their cars

Frequently asked questions

What do I need to get a quote from AAA?

To provide a AAA insurance quote, an agent will need to know information about your driving record, your age, your location, the type of car you want to insure and the number of miles you drive each year.

What is the best auto insurance company?

Agreeing on the best auto insurance company is a hot debate. It all depends on what you are searching for — price, policies, additional coverages or customer satisfaction. Shop around and get multiple car insurance quotes from the top-rated providers in our best auto insurance companies roundup to find the best one for you.

How much is AAA membership?

AAA has three tiers of membership: Classic, Plus and Premier. The AAA membership cost is between $38 and $164, depending on the membership level you choose and your location.

How do I file a claim with AAA?

You can file AAA insurance claims by submitting a call-back request on the AAA website or by calling AAA Insurance customer service at the nationwide call center.

Do AAA auto club members receive a discount on AAA auto insurance?

Some AAA club members receive a 5% discount on auto insurance, along with loyalty discounts when they consistently renew their policies.

Written by
Cynthia Paez Bowman
Personal Finance Contributor
Cynthia Paez Bowman is a finance and business journalist who has been featured in Bankrate, Business Jet Traveler, MSN, CheatSheet.com, Freshome.com and TheSimpleDollar.com. She regularly travels to Africa and the Middle East to consult with women’s NGOs about small business development and works with select startups and women-owned businesses to provide growth and visibility.
Edited by
Insurance Editor