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AAA vs State Farm
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State Farm is the largest auto insurance company in the U.S. Although it was founded in 1922 and initially specialized for farmers, the company now offers a broad array of insurance products, including auto, home, life, pet, renters, umbrella and more. Its auto insurance coverage options, digital tools and positive customer satisfaction scores helped it earn a high Bankrate score of 4.3.
The American Automobile Association (AAA) also offers a variety of coverage options and discounts, but coverage availability may vary by region. AAA began as a single company in Chicago in 1902. Now, it operates through a network of 32 different regional auto clubs. AAA is perhaps most well known for its robust roadside assistance coverage.
AAA | State Farm | |
---|---|---|
Bankrate score | 3.4 | 4.3 |
Tier 1 | 3.5 | 4.3 |
Tier 2 | 2.5 | 4.0 |
Tier 3 | 4.3 | 4.4 |
Our verdict
While AAA insurance options include some unique and useful services, State Farm tends to receive better customer satisfaction ratings and offer lower average rates. Auto insurance policies from both companies are available in most states, and both companies offer a variety of discounts, including telematics programs, but State Farm does have a training and telematics program geared specifically towards young drivers.
AAA vs State Farm comparison
When comparing AAA vs. State Farm auto insurance, comparing pros and cons may help you decide which company will best meet your needs. Below we’ve compiled some of the potential perks and drawbacks of State Farm and AAA car insurance.
AAA pros and cons
Pros
- Regional clubs may have area-specific coverage options
- Variety of coverage options and discounts available
- Offers non-insurance services like notary services, DMV transactions and travel planning
Cons
- Average full and minimum coverage rates are higher than the national average
- Membership may be required for many perks
- J.D. Power claims satisfaction score is below average for some of AAA’s largest auto clubs
- NAIC Complaint Index may vary by region
State Farm pros and cons
Pros
- Receives high scores with J.D. Power for claims and customer satisfaction
- AM Best financial rating of superior (A++)
- Offers competitive average rates
- Local agents are available for face-to-face service
Cons
- Customer service is not available 24/7
- Gap insurance and accident forgiveness are not available
- Coverage is not available nationwide
Is AAA cheaper than State Farm?
Average auto insurance rates may help drivers determine which company could offer them the most competitive rates for their situation. However, personal rates will vary widely based on personal rating factors like driving record, age (in most states), vehicle type and more. The rates listed below are national average rates provided by Quadrant Information Services.
Car insurance company | Average annual premium for full coverage | Average annual premium for minimum coverage |
---|---|---|
AAA | $2,562 | $681 |
State Farm | $1,480 | $464 |
State Farm is generally cheaper for drivers with poor credit
Your credit score may impact your auto insurance rates in most states. California, Hawaii, Michigan, and Massachusetts do not allow credit scores as rating factors. According to our research, State Farm has cheaper rates on average than AAA for all credit score levels.
Credit Score | AAA | State Farm |
---|---|---|
Poor | $5,470 | $3,813 |
Average | $5,470 | $1,712 |
Good | $2,562 | $1,480 |
Excellent | $2,162 | $1,173 |
State Farm is generally cheaper for young drivers
In most states, car insurance companies can consider your age or years of experience behind the wheel when determining your rates. In general, young drivers and seniors tend to have the highest premiums. Teens may see especially high rates due to their high accident rate and relative inexperience on the road. The following rates are for young drivers on their parents’ policy.
AAA | State Farm | |
---|---|---|
Age 16 | $5,339 | $3,139 |
Age 17 | $4,932 | $2,874 |
Age 18 | $4,640 | $2,689 |
Age 19 | $4,197 | $2,489 |
Age 20 | $4,008 | $2,361 |
State Farm is generally cheaper for adult drivers
As drivers age, their rates typically decrease, until a certain age, as long as they maintain a clean driving record. As the table shows, State Farm is generally less expensive for adult drivers than AAA. The following rates are for drivers insured on their own policy.
AAA | State Farm | |
---|---|---|
Age 18 | $6,706 | $4,066 |
Age 25 | $3,067 | $1,742 |
Age 30 | $2,620 | $1,522 |
Age 40 | $2,562 | $1,480 |
Age 60 | $2,246 | $1,363 |
State Farm is generally cheaper for high-risk drivers
Your driving record can play a large role in determining the cost of your auto insurance policy. Typically, drivers with clean driving records will see lower rates than ones with incidents, like a speeding ticket, at-fault accident or DUI, on their records. Our analysis shows that State Farm offers cheaper average full coverage rates for drivers with a single speeding conviction or at-fault accident on their motor vehicle records.
A DUI is one of the most serious high-risk incidents, and some insurers choose not to write policies for these drivers. As such, many carriers do not write policies for drivers with a DUI conviction. If you are shopping for car insurance with a DUI, you may have a harder time securing a policy.
AAA | State Farm | |
---|---|---|
Clean driving record | $2,562 | $1,480 |
Speeding ticket conviction | $3,131 | $1,704 |
At-fault accident | $3,717 | $1,876 |
AAA vs State Farm: discounts
Most auto insurance companies offer at least a handful of potential discounts. Common discounts most providers offer include those for insuring multiple cars or for bundling home and auto policies. AAA and State Farm have these as well, plus a few more that are designed to assist new customers and to retain existing policyholders. Below are some of the more unique discounts each carrier offers.
AAA unique discounts
- Member discounts: AAA members may earn discounts and deals for more than just auto insurance. Members may save on gas, rental cars and much more.
- Advanced shopping discount: Drivers may be eligible for this discount if they purchase a policy more than seven days before the coverage begins on a vehicle that was previously covered by another policy for at least six continuous months.
- Loyalty discount: Policyholders may save if they have had a continuous AAA auto insurance policy for a set number of years.
State Farm unique discounts
- Accident-free discount: Insureds may receive a discount for remaining accident free for a set period of time. Savings may increase for every year without an accident.
- Steer clear program: This discount is linked to a telematics program and designed for drivers under the age of 25. Those who participate in the program complete driver education courses and use a telematics app to potentially reduce their rate.
- Defensive driving discount: Drivers who complete a designated driver safety course may earn a discount.
Usage-based insurance comparison: AAA vs State Farm
Telematics programs have become increasingly available from insurers in recent years. These usage-based programs may allow drivers to earn discounts based on their safe driving habits. Both AAA and State Farm offer telematics programs. We’ve highlighted State Farm’s Drive Safe & Save program, but it also offers its Steer Clear program for drivers under 25.
AAADrive | State Farm Drive Safe & Save | |
---|---|---|
Telematics device | App | App and eligible connected cars |
Monitored driving factors | Start and end time, location, speed, acceleration and mobile phone use | Acceleration, braking, cornering, mileage, speed and mobile phone use |
Potential impact on rates | Decrease | Decrease |
Potential discount | Up to 25% | Up to 30% |
Availability | Select states | App is available in all states where coverage is offered except for California and North Carolina |
AAA vs State Farm: customer experience comparison
Customer service and satisfaction may be a key metric for many drivers choosing a car insurance company. Mobile app ratings may help drivers determine how easily they can access digital tools and file claims. We also analyzed the 2023 J.D. Power Auto Claims Satisfaction study to see how satisfied customers may be with each company’s service. For reference, the segment average in the J.D. Power study was 873/1,000.
AAA | State Farm | |
---|---|---|
App Store | 4.6 out of 5 | 4.8 out of 5 |
Google Play | 4.4 out of 5 | 4.7 out of 5 |
J.D. Power |
Auto Club of Southern California: 889/1,000 CSAA Insurance Group: 874/1,000 Automobile Club Group: 848/1,000 |
891 / 1,000 |
Frequently asked questions
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.